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PAR Technology Corp

PAR Technology Corp

PAR
$17.62USD↓-0.23%-0.04 today

MARKET CAP

728.8M

P/E (TTM)

—

FWD P/E

—

DAY RANGE

$17 – $18

52W RANGE

$12
$48

AI Summary

Stalk
Buy NowMedium

The rally since June remains intact under a Stage 2 advancing structure, despite a late-August exhaustion signal that warns of a pullback. Price is currently retracing into rising 9-EMA and 20-EMA without breakdown, offering a favorable entry on a shallow pullback. Medium-term bias stays bullish while the long-term downtrend persists under a declining 200-DMA. Execution is optimal now into the 9/20 EMA zone to participate in continuation.

  • ↑Q2 total revenue $133M, +19% YoY; subscription services $83M, 63% of rev.
  • ↑ARR reached $338M, +17% YoY, driven by integrated AI demand.
  • ↓Net loss $17M, $0.41/share, despite revenue growth, signaling profitability challenges.
Full analysis →

The case for & against

Bull & Bear analysis

Bullish

PAR Technology Corporation (NYSE: PAR) is a leading provider of technology solutions for the restaurant and retail industries, centered on integrated platforms leveraging advanced AI capabilities. Positioned as a key player in the rapidly evolving digital landscape, PAR aims to deliver operational efficiency and enhanced customer engagement. Their products include point-of-sale systems, customer data platforms, and AI-driven tools, reflecting a focus on enhancing the technology stack across dining establishments and retail environments amidst a growing emphasis on AI solutions.

Bull says

  • ↑Q2 total revenue $133M, +19% YoY; subscription services $83M, 63% of rev.
  • ↑ARR reached $338M, +17% YoY, driven by integrated AI demand.
  • ↑Adjusted EBITDA $14.3M, +158% YoY; non-GAAP OPEX cut to 38% of rev.
  • ↑Competitive AI integration edge with limited competitor momentum.
  • ↑Valuation appears undervalued with high earnings yield and positive analyst revisions, backed by rising institutional ownership.

Bear says

  • ↓Net loss $17M, $0.41/share, despite revenue growth, signaling profitability challenges.
  • ↓Weak profitability factors raise concerns over sustainable returns.
  • ↓Hardware sales face margin pressure from tariffs and supply-chain constraints.
  • ↓Execution risk high with large backlog of go-lives for H2 2026.
  • ↓Intense AI competition and volatile market sentiment could stall growth.
  • ↓Elevated share-price volatility and negative momentum suggest possible downside.

Investment themes with PAR

Software↓ -1.57%

Cloud-based digital tools powering business productivity and innovation

MSFT · ORCL · PLTR

Earnings Call · Q3 2023 · Mgmt. Guidance

Updated 12-09-2024neutral

Transcript signals

Bull points

  • we expect that government revenue was in the upper 30s this quarter, and we expect it to be in the lower 30s on a quarterly basis moving forward.
  • Total revenues were $107.1 million for the three months ended September 30, 2023, an increase of 15.5% compared to the three months ended September 30, 2022, with growth coming from contracts and subscription services revenue
  • Adjusted EBITDA for the third quarter of 2023 was a loss of $2.6 million compared to an adjusted EBITDA loss of $8 million for the same period in 2022. This improvement was driven by an increase in subscription services margin and our continued commitment to holding operating expenses flat

Bear points

  • Net loss for the third quarter of 2023 was $15.5 million or $0.56 loss per share compared to a net loss of $21.3 million or $0.79 loss per share reported for the same period in 2022.
  • Hardware revenue in the quarter was $25.8 million, a decrease of $5.5 million or 17.6% from the $31.3 million reported in the prior year.
  • Contract backlog with our government business as of September 30, 2023, was $327.5 million, a decrease of 5% compared to $344.8 million as of September 30, 2022.
Read full transcript analysis ›