PAR Technology Corp Reports Strong Q4 and Full Year 2024 Results

PAR Technology Corporation (NYSE: PAR) has released its financial results for the fourth quarter and the full year ending December 31, 2024. The company showcased significant growth, particularly in its annual recurring revenue (ARR), reporting a remarkable 21% organic growth year-over-year for Q4. This performance marks a pivotal moment for PAR, as it achieves its second consecutive quarter of positive Adjusted EBITDA, reinforcing the effectiveness of its strategic initiatives.

Savneet Singh, CEO of PAR Technology, expressed optimism about the company’s performance, stating, "We delivered a strong fourth quarter, with 21% organic ARR growth year-over-year and our second consecutive quarter of positive Adjusted EBITDA, proving out our better together thesis." He highlighted 2024 as a milestone year for PAR, emphasizing their best organic execution to date and the strategic incorporation of accretive modules. Singh remains confident in the company’s trajectory for long-term growth and value creation for shareholders.

In the fourth quarter of 2024, PAR Technology reported revenue of $105 million, a significant increase of 50.2% compared to $69.9 million in Q4 2023. However, the company did report a net loss from continuing operations of $25.3 million, which is a decline from the loss of $21.5 million recorded in the same period the previous year.

Despite the net loss, PAR achieved an Adjusted EBITDA of $5.8 million, a substantial improvement from the negative $7.4 million in Q4 2023, reflecting a positive swing of $13.1 million.

The diluted net loss per share from continuing operations for Q4 2024 was reported at $0.68, an improvement from the loss of $0.77 per share in Q4 2023. The non-GAAP diluted net loss per share also showed improvement, coming in at nearly breakeven at $(0.00) per share compared to $(0.43) per share in the prior year.

The subscription service gross margin percentage for Q4 2024 was recorded at 53.2%, up from 48.1% in Q4 2023. However, there was a slight decline in the non-GAAP subscription service gross margin, which was reported at 64.7%, down from 65.3% year-over-year.

For the full year 2024, PAR Technology reported total revenue of $350 million, reflecting a robust increase of 26.5% compared to $276.7 million in 2023. Despite this growth in revenue, the company experienced a net loss from continuing operations of $89.9 million, compared to a loss of $81.6 million the previous year, marking a deterioration of $8.3 million.

The diluted net loss per share from continuing operations for the entire year was $(2.63), an improvement from $(2.96) in 2023. The non-GAAP diluted net loss per share also improved significantly, ending the year at $(0.73) compared to $(1.96) in 2023, amounting to a betterment of $1.23.

For the full year, the subscription service gross margin percentage was recorded at 53.5%, improving from 48.0% in 2023. However, the non-GAAP figure showed a slight decrease, ending the year at 65.9% compared to 66.4% the previous year.

PAR Technology Corporation’s 2024 financial results reflect a year of substantial growth and strategic execution, despite the challenges of ongoing net losses. The company’s focus on enhancing organic growth through its subscription services is evident in its impressive ARR growth. Looking ahead, PAR Technology is poised to continue its momentum, with a strong foundation for future growth and shareholder value creation.