PAR reports nearly 26 percent revenue rise in 2022

NEW HARTFORD, N.Y. — PAR Technology Corp. (NYSE: PAR) says it closed out 2022 with increased revenue that helped the company reduce its losses and end the year ahead of its 2021 performance.

For the full-year 2022, the company reported revenue of $355.8 million, up 25.8 percent from $282.9 million in 2021. PAR posted a net loss of $69.3 million in 2022, an improvement over a net loss of $75.8 million the year before.

“I’m pleased to report that our growth momentum continues as we aggressively expand our unified experience to new and existing customers,” company CEO Savneet Singh said during a March 1 conference call with investors and analysts.

That unified experience includes a bundle of operator solutions, guest-engagement, and back-office operations products for the restaurant industry. While some clients have had to scale back their marketing dollars in the current economy, the combination of inflation, labor, and supply-chain issues are creating a demand for PAR products as clients look for tools to help them control food and labor costs, Singh contends.

PAR Technology is continuing initiatives in 2023 that should help hold the line on costs while it continues to push its products, he says. “We’ve been able to continuously grow revenue while not increasing overhead,” he notes.

A recent change in the sales department with each client having a designated account manager and sales team is already showing benefits, Singh contends. The company recently landed Zaxby’s, a fast-casual restaurant chain, as a new customer with its Brink point-of-sale and Punchh customer-loyalty products.

PAR reported revenue of $97.7 million in the fourth quarter of 2022, a 19.7 percent increase from $81.6 million for the same period in 2021. PAR’s restaurant/retail segment produced revenue of $70.9 million in the latest quarter, up from $62.8 million for the fourth quarter of 2021. The company’s government segment posted revenue of $26.7 million in the fourth quarter in 2022, up from $18.8 million a year earlier.

While PAR reported an adjusted quarterly loss of 26 cents per share for the fourth quarter, that amount was well below the 51-cent loss projected by Zacks Equity Research’s consensus estimate.

PAR has surpassed Zacks’ consensus earnings estimates twice over the last four quarters. Revenue also beat the Zacks estimate by 6.14 percent and beat the consensus estimate four times over the past year.

“We are pleased to have finished the year with positive momentum and believe our strong results and achievements in a macro-challenged environment reflects the successful execution of our growth strategy,” Singh said in the PAR earnings report. “We have delivered strong year-over-year growth from our unified experience from our unified experience offerings as our customers continue to embrace the idea of a unified partner to help align their data and drive real return on investment. We expect to continue to scale our subscription revenues for enterprise restaurants in 2023, while simultaneously maintaining operating expenses at current levels demonstrating strong operating leverage.”

In its report, Zacks forecasts PAR to post a 33-cent loss on revenue of $90.7 million in revenue for the first quarter of 2023 and a loss of $1.02 per share on revenue of $386.01 million for the full year.

PAR’s stock price was up more than 40 percent year to date, through March 6.

Headquartered in New Hartford, PAR provides point-of-sale, loyalty, and back-office software solutions along with hardware products to more than 100,000 restaurants in more than 110 countries.