Summary
PAR Technology closed the March 31, 2024 quarter with revenue of $105.5 million, up 5.0% from $100.4 million in the prior-year quarter. The top line grew even as hardware sales fell. Hardware revenue dropped 31.9% to $18.2 million, which management tied to the timing of enterprise customer hardware refreshes and the launch of a next generation terminal and headset. Subscription service revenue rose 37.2% to $38.4 million, contract revenue rose 11.2% to $35.4 million, and professional service revenue slipped 2.7% to $13.5 million.
The recurring revenue base is the louder story. Annual recurring revenue reached $185.7 million, a 60.2% total increase and a 24.8% organic increase from $115.9 million a year earlier. The Stuzo acquisition added $41.0 million of that ARR. Engagement Cloud ARR hit $107.2 million and Operator Cloud ARR reached $78.5 million.
Profitability remains the weak spot. Gross profit rose 23.2% to $28.56 million, and gross margin improved to 27.1% from 23.1%, up 4.0 percentage points. Operating loss widened to $24.67 million from $13.86 million a year ago, and operating margin fell to negative 23.4% from negative 13.8%. Net loss widened to $18.29 million, or $0.62 per diluted share, from $15.90 million, or $0.58 per share. General and administrative expense jumped 41.6% to $25.6 million, driven largely by $4.4 million of transaction due diligence costs tied to Stuzo and TASK. On a non-GAAP basis, adjusted EBITDA loss narrowed to $7.2 million from $8.8 million, and adjusted net loss narrowed to $10.8 million, or $0.36 per diluted share, from $12.7 million, or $0.46 per share.
Operating cash flow stayed negative and deepened. Cash used in operating activities was $23.6 million for the quarter, compared with $16.7 million a year earlier, a 40.8% increase in the outflow. The company ended the quarter with $50.8 million of cash and cash equivalents and $21.7 million of short-term investments. In March 2024 it raised about $194.4 million, net of $5.5 million of issuance costs, by selling 5,174,638 shares at $38.65 each, and it paid roughly $190 million to acquire Stuzo ($170.5 million in cash and $19.2 million in stock). Deferred revenue, current portion, rose 61.7% to $14.71 million, and remaining performance obligations rose 18.2% to $16.19 million. Capital expenditures were $0.04 million, down 94.5% from $0.82 million.
The forward view rests on acquisitions rather than internal guidance. The company did not issue revenue guidance for the next quarter or the full fiscal year in the release. It expects the TASK acquisition, a global food service transaction platform, to close in the third quarter of 2024 and to contribute $40.0 million in ARR based on figures reported as of September 30, 2023. Active sites reached 92.7 thousand in Engagement Cloud (up 36.2%) and 27.0 thousand in Operator Cloud (up 20.7%). Adjusted subscription service gross margin slipped to 66% from 71%, which management attributed to higher maintenance and support costs for Engagement Cloud. The list of named risks is long: integration of Stuzo and TASK, unfavorable macroeconomic conditions, fluctuating interest rates, inflation, component shortages, and the competitive market for talent. Over the next 12 months, contractual obligations total $31.4 million, including $7.4 million of principal and interest on long-term debt.
Forecast
No forward guidance in this quarter's filings.
Reported figures
GAAP, from SEC filings| Metric | Q1 FY2024 | Q4 FY2023 | QoQ | Q1 FY2023 | YoY |
|---|---|---|---|---|---|
| Revenue | $105.5M | $107.7M | -2.1% | $100.4M | +5.0% |
| Gross profit | $28.6M | $26.4M | +8.2% | $23.2M | +23.2% |
| Gross margin | 27.1% | 24.5% | +2.6 pp | 23.1% | +4.0 pp |
| Research & development | $15.8M | $14.5M | +8.8% | $14.3M | +10.2% |
| Sales & marketing | $10.9M | -$40.8M | +126.8% | $27.5M | -60.2% |
| General & administrative | $25.6M | $69.0M | -62.9% | — | — |
| Total operating expenses | $53.2M | $41.4M | +28.6% | $37.1M | +43.7% |
| Operating income (loss) | -$24.7M | -$15.0M | -64.4% | -$13.9M | -78.0% |
| Operating margin | -23.4% | -13.9% | -9.5 pp | -13.8% | -9.6 pp |
| Net income (loss) | -$18.3M | -$18.6M | +1.8% | -$15.9M | -15.0% |
| Net margin | -17.3% | -17.3% | -0.0 pp | -15.8% | -1.5 pp |
| Diluted EPS | -$0.62 | -$0.68 | +$0.06 | -$0.58 | -$0.04 |
| Customers | 10,443 | 6,531 | +59.9% | — | — |
Risks
The Stuzo Acquisition closed on March 8, 2024 for approximately $190 million and contributed $41.0 million in ARR and 20.7 thousand active sites within Engagement Cloud as of March 31, 2024. The planned TASK acquisition is expected to contribute $40.0 million in ARR and close in the third quarter of 2024 subject to conditions, increasing integration and execution demands.
Operating loss widened to $24.7 million in Q1 2024 from $13.9 million in Q1 2023, a decrease of 78.0%, and operating margin fell to negative 23.4% from negative 13.8%. General and administrative expense rose 41.6%, including a $4.4 million increase in transaction due diligence costs.
Operating cash flow was negative $23.6 million in Q1 2024, down 40.8% from negative $16.7 million in Q1 2023, driven substantially by the net loss and a $5.1 million increase in accounts receivable from revenue growth. Cash and cash equivalents were $50.8 million and short-term investments were $21.7 million as of March 31, 2024.
Hardware revenues were $18.2 million in Q1 2024, down 31.9% from $26.8 million in Q1 2023, driven by decreases in terminals, peripherals, and kitchen display systems due to the timing of enterprise customer hardware refreshes and the market launch of the next generation PAR terminal and headset.
Contract revenues were $35.4 million in Q1 2024, up 11.2% from $31.9 million in Q1 2023, driven substantially by Government segment ISR Solutions product line revenues from continued Counter-small Unmanned Aircraft System task orders. This concentration in government task orders can create timing and funding variability.
Non-current contractual obligations were $410.2 million, consisting primarily of $385.0 million in principal payments and $13.7 million in interest payments related to long-term debt. Over the next 12 months, principal and interest payments on long-term debt are $7.4 million.
In March 2024, the Company issued and sold 5,174,638 shares of common stock at $38.65 per share for net proceeds of approximately $194.4 million to partially fund the Stuzo Acquisition, diluting existing shareholders. The Company may seek additional equity, equity-linked, or debt financing in the future.
Adjusted subscription service gross margin was 66% in Q1 2024 compared to 71% in Q1 2023, primarily driven by higher maintenance and support costs for Engagement Cloud offerings, even though GAAP subscription service gross margin increased to 51.6% from 50.2%.
SaaS KPIs
All quarters →Adjusted EBITDA
Annual Recurring Revenue (ARR)
Adjusted Subscription Service Gross Margin
Active Sites (Engagement Cloud)
Active Sites (Operator Cloud)
Engagement Cloud ARR
Operator Cloud ARR
Organic ARR
Summary, forecast, risks and KPIs are extracted from PAR TECHNOLOGY CORP's SEC filings for Q1 FY2024 (10-Q / 10-K and the 8-K earnings release); GAAP figures in the summary are checked against the reported XBRL data. They can contain errors; the filings are authoritative. Processed Oct 2, 2026.