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PAR Technology Corporation Announces Third Quarter 2023 Results

  • Total quarterly revenues increased 15.5% year-over-year from Q3 '22
  • Subscription service revenues increased 24.6% year-over-year from Q3 '22
  • Annual Recurring Revenue (ARR)(1) grew to $128.3 million - a 20.4% year-over-year increase from Q3 '22

PAR Technology Corporation (NYSE: PAR) (“PAR Technology” or the “Company”) today announced its financial results for the third quarter ended September 30, 2023.

Summary of Fiscal 2023 Third Quarter

  • Revenues were reported at $107.1 million for the three months ended September 30, 2023, a 15.5% increase compared to $92.8 million for the same period in 2022.
  • Net loss for the three months ended September 30, 2023 was $15.5 million, or $0.56 net loss per share, compared to a net loss of $21.3 million, or $0.79 net loss per share reported for the same period in 2022.
  • EBITDA(1) for the three months ended September 30, 2023 was a loss of $6.9 million compared to a loss of $12.2 million for the same period in 2022.
  • Adjusted EBITDA(1) for the three months ended September 30, 2023 was a loss of $2.6 million compared to an Adjusted EBITDA loss of $8.0 million for the same period in 2022.
  • Adjusted net loss(1) for the three months ended September 30, 2023 was $5.8 million, or $0.21 adjusted diluted net loss per share(1), compared to an adjusted net loss of $11.9 million, or $0.44 adjusted diluted net loss per share, for the same period in 2022.

Summary of Year-to-Date Financial Results

  • Revenues were reported at $308.1 million for the nine months ended September 30, 2023, a 19.4% increase compared to $258.1 million for the same period in 2022.
  • Net loss for the nine months ended September 30, 2023 was $51.1 million, or $1.86 net loss per share, compared to a net loss of $55.8 million, or $2.06 net loss per share reported for the same period in 2022.
  • EBITDA for the nine months ended September 30, 2023 was a loss of $24.6 million compared to a loss of $28.6 million for the same period in 2022.
  • Adjusted EBITDA for the nine months ended September 30, 2023 was a loss of $21.3 million compared to an Adjusted EBITDA loss of $16.0 million for the same period in 2022.
  • Adjusted net loss for the nine months ended September 30, 2023 was $32.7 million, or $1.19 adjusted diluted net loss per share, compared to an adjusted net loss of $28.9 million, or $1.06 adjusted diluted net loss per share, for the same period in 2022.

Reconciliations and descriptions of non-GAAP financial measures to corresponding GAAP financial measures are included in the tables at the end of this press release.

_______

(1)

See “Key Performance Indicators and Non-GAAP Financial Measures” below.

The Company's key performance indicators ARR and Active Sites(1) are organized into three subscription service product lines: Guest Engagement (Punchh and MENU), Operator Solutions (Brink POS, PAR Pay, and PAR Payment Services), and Back Office (Data Central).

Highlights of Guest Engagement - Third Quarter 2023(1):

  • ARR at end of Q3 '23 totaled $62.2 million
  • New store Activations in Q3 '23 totaled approximately 1,000 sites
  • Active Sites as of September 30, 2023 totaled 68.1 thousand restaurants

Highlights of Operator Solutions - Third Quarter 2023(1):

  • ARR at end of Q3 '23 totaled $53.8 million
  • New store Activations in Q3 '23 totaled approximately 1,200 sites
  • Bookings in Q3 '23 totaled approximately 1,100 sites
  • Active Sites as of September 30, 2023 totaled 22.5 thousand restaurants

Highlights of Back Office - Third Quarter 2023(1):

  • ARR at end of Q3 '23 totaled $12.4 million
  • New store Activations in Q3 '23 totaled approximately 400 sites
  • Active Sites as of September 30, 2023 totaled 7.5 thousand restaurants

PAR Technology CEO, Savneet Singh, commented on the results, “As our results for the quarter demonstrated, we continue to build momentum as we scale our business. In the quarter we delivered subscription services revenue growth of 24.6% and ARR growth of 20.4%. With the year-over-year growth in our ARR, a rebound in our subscription services gross margin and our focus on holding operating expenses, we improved and reduced our adjusted EBITDA loss by over 65% from Q3 2022. This quarter also marked a seminal moment in PAR’s history as we announced the exclusive selection of Brink POS and MENU Link by Burger King for their North American traditional restaurants. Already possessing the most comprehensive cloud offering, PAR will continue to deliver a roadmap of innovation to strengthen our offerings while enhancing the customer experience."

Earnings Conference Call.

There will be a conference call at 4:30 p.m. (Eastern) on November 9, 2023, during which management will discuss the Company's financial results for the third quarter ended September 30, 2023. To participate on the conference call, please register in advance via the link provided at https://www.partech.com/investor-relations/. After registering, a confirmation email will be sent including dial-in details and unique conference call codes for entry. Registration is open throughout the live call, but to ensure you are connected for the entire call we suggest registering at least 10 minutes before the start of the call. The conference call will also be webcast live. To access the webcast, please visit https://www.partech.com/investor-relations/; a recording of the webcast will be available on the site after the event.

About PAR Technology Corporation.

For more than 40 years, PAR Technology Corporation’s (NYSE Symbol: PAR) cutting-edge products and services have helped bold and passionate restaurant brands build lasting guest relationships. We are the partner enterprise restaurants rely on when they need to serve amazing moments from open to close, during the most hectic rush hours, and when the world forces them to adapt and overcome. More than 70,000 restaurants in more than 110 countries use PAR’s restaurant point-of-sale, customer loyalty and engagement, payments, omnichannel digital ordering and delivery, and back-office software solutions as well as industry leading hardware and drive-thru offerings. To learn more, visit partech.com or connect with us on LinkedIn, Twitter, Facebook, and Instagram. The Company's Environmental, Social, and Governance report can be found at https://www.partech.com/company/ESG.

_______

(1)

See “Key Performance Indicators and Non-GAAP Financial Measures” below.

Key Performance Indicators and Non-GAAP Financial Measures.

We monitor certain key performance indicators and non-GAAP financial measures in the evaluation and management of our business; certain key performance indicators and non-GAAP financial measures are provided in this press release because we believe they are useful in facilitating period-to-period comparisons of our business performance. Key performance indicators and non-GAAP financial measures do not reflect and should be viewed independently of our financial performance determined in accordance with GAAP. Key performance indicators and non-GAAP financial measures are not forecasts or indicators of future or expected results and should not have undue reliance placed upon them by investors.

Where non-GAAP financial measures are included in this press release, the most directly comparable GAAP financial measures and a detailed reconciliation between GAAP and non-GAAP financial measures is included in this press release under “Non-GAAP Financial Measures”.

Unless otherwise indicated, financial and operating data included in this press release is as of September 30, 2023.

As used in this press release,

“Annual Recurring Revenue” or “ARR” is the annualized revenue from subscription services, including subscription fees for our SaaS solutions, related software support, and transaction-based payment processing services. We calculate ARR by annualizing the monthly subscription service revenue for all Active Sites as of the last day of each month for the respective reporting period.

“Active Sites” represent locations active on PAR’s subscription services as of the last day of the respective fiscal period.

Activations” are calculated as of the end of each month based on the number of customers that have initiated use of our subscription services. Once “activated”, PAR begins to invoice/bill the customer. In specific cases with Punchh, invoicing takes place before activation take place.

Bookings” are customer purchase orders for subscription services; upon PAR's acceptance, the customer is obligated to purchase the subscription service and pay PAR for the subscription services. In specific cases with Punchh, bookings are added at the time of execution of the relevant master services agreement.

Trademarks.

“PAR®,” “Brink POS®,” “Punchh®,” “MENUTM,” “Data Central®,” "PAR® Pay”, “PAR® Payment Services” and other trademarks appearing in this press release belong to us.

Forward-Looking Statements.

This press release contains forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended, Section 27A of the Securities Act of 1933, as amended, and the Private Securities Litigation Reform Act of 1995. Forward-looking statements are not historical in nature, but rather are predictive of our future operations, financial condition, financial results, business strategies and prospects. Forward-looking statements are generally identified by words such as “anticipate,” “believe,” “belief,” “continue,” “could,” “expect,” “estimate,” “intend,” “may,” “opportunity,” “plan,” “should,” “will,” “would,” “will likely result,” and similar expressions. Forward-looking statements are based on management's current expectations and assumptions that are subject to a variety of risks and uncertainties, many of which are beyond our control, which could cause our actual results to differ materially from those expressed in or implied by forward-looking statements contained in this press release about our business, financial condition, and results of operations. Factors, risks, trends and uncertainties that could cause our actual results to differ materially from those expressed in or implied by forward-looking statements contained in this press release include, among others, a resurgence of COVID-19 cases and the responses of governments, businesses, customers and consumers; unfavorable macroeconomic conditions, such as recession or slowed economic growth, bank failures or other banking industry disruptions, increased interest rates, inflation, and changes in consumer confidence and discretionary spending; geopolitical events, such as the Russia-Ukraine war and escalating tensions between China and Taiwan; the competitive marketplace for talent and its impact on employee recruitment and retention; component shortages, inventory management, and/or manufacturing disruptions and logistics challenges; risks associated with our international operations; our ability to maintain proper and effective internal control over financial reporting; changes in estimates and assumptions we make in connection with the preparation of our financial statements, in building our business and operational plans, and in executing our strategies; and the other factors, risks, trends and uncertainties discussed in our most recent Annual Report on Form 10-K/A and other filings with the Securities and Exchange Commission. Undue reliance should not be placed on the forward-looking statements in this press release, which are based on the information available to us on the date hereof. We undertake no obligation to update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise, except as may be required under applicable securities law.

PAR TECHNOLOGY CORPORATION AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS

(unaudited, in thousands, except share amounts)

 

Assets

September 30,

2023

 

December 31,

2022

Current assets:

 

 

 

Cash and cash equivalents

$

43,136

 

 

$

70,328

 

Cash held on behalf of customers

 

8,758

 

 

 

7,205

 

Short-term investments

 

36,717

 

 

 

40,290

 

Accounts receivable – net

 

66,441

 

 

 

59,960

 

Inventories

 

24,193

 

 

 

37,594

 

Other current assets

 

9,516

 

 

 

8,572

 

Total current assets

 

188,761

 

 

 

223,949

 

Property, plant and equipment – net

 

16,110

 

 

 

12,961

 

Goodwill

 

487,073

 

 

 

486,762

 

Intangible assets – net

 

96,562

 

 

 

111,097

 

Lease right-of-use assets

 

4,303

 

 

 

4,061

 

Other assets

 

16,400

 

 

 

16,028

 

Total assets

$

809,209

 

 

$

854,858

 

Liabilities and Shareholders’ Equity

 

 

 

Current liabilities:

 

 

 

Current portion of long-term debt

$

13,638

 

 

$

 

Accounts payable

 

27,229

 

 

 

23,283

 

Accrued salaries and benefits

 

15,652

 

 

 

18,936

 

Accrued expenses

 

10,578

 

 

 

6,531

 

Customers payable

 

8,758

 

 

 

7,205

 

Lease liabilities – current portion

 

1,327

 

 

 

1,307

 

Customer deposits and deferred service revenue

 

10,066

 

 

 

10,562

 

Total current liabilities

 

87,248

 

 

 

67,824

 

Lease liabilities – net of current portion

 

3,075

 

 

 

2,868

 

Deferred service revenue – noncurrent

 

4,329

 

 

 

5,125

 

Long-term debt

 

377,148

 

 

 

389,192

 

Other long-term liabilities

 

4,669

 

 

 

14,655

 

Total liabilities

 

476,469

 

 

 

479,664

 

Shareholders’ equity:

 

 

 

Preferred stock, $.02 par value, 1,000,000 shares authorized, none outstanding

 

 

 

 

 

Common stock, $0.02 par value, 58,000,000 shares authorized, 28,877,896 and 28,589,567 shares issued, 27,520,284 and 27,319,045 outstanding at September 30, 2023 and December 31, 2022, respectively

 

574

 

 

 

570

 

Additional paid in capital

 

606,836

 

 

 

595,286

 

Accumulated deficit

 

(256,327

)

 

 

(205,204

)

Accumulated other comprehensive loss

 

(1,507

)

 

 

(1,365

)

Treasury stock, at cost, 1,357,612 shares and 1,270,522 shares at September 30, 2023 and December 31, 2022, respectively

 

(16,836

)

 

 

(14,093

)

Total shareholders’ equity

 

332,740

 

 

 

375,194

 

Total Liabilities and Shareholders’ Equity

$

809,209

 

 

$

854,858

 

See notes to unaudited interim condensed consolidated financial statements included in the Company's quarterly report on Form 10-Q for the quarter ended September 30, 2023 (the “Quarterly Report”).

PAR TECHNOLOGY CORPORATION

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(unaudited, in thousands, except per share amounts)

 

 

Three Months Ended

September 30,

 

Nine Months Ended

September 30,

 

 

 

2023

 

2022

 

2023

 

2022

Revenues, net:

 

 

 

 

 

 

 

Hardware

$

25,824

 

 

$

31,343

 

 

$

78,991

 

 

$

84,820

 

Subscription service

 

31,363

 

 

 

25,170

 

 

 

89,700

 

 

 

69,591

 

Professional service

 

11,514

 

 

 

11,840

 

 

 

38,123

 

 

 

36,959

 

Contract

 

38,433

 

 

 

24,414

 

 

 

101,301

 

 

 

66,775

 

Total revenues, net

 

107,134

 

 

 

92,767

 

 

 

308,115

 

 

 

258,145

 

Costs of sales:

 

 

 

 

 

 

 

Hardware

 

19,295

 

 

 

25,458

 

 

 

63,002

 

 

 

69,666

 

Subscription service

 

15,497

 

 

 

13,054

 

 

 

46,655

 

 

 

34,332

 

Professional service

 

8,775

 

 

 

10,967

 

 

 

31,925

 

 

 

30,649

 

Contract

 

35,381

 

 

 

21,880

 

 

 

94,624

 

 

 

60,356

 

Total cost of sales

 

78,948

 

 

 

71,359

 

 

 

236,206

 

 

 

195,003

 

Gross margin

 

28,186

 

 

 

21,408

 

 

 

71,909

 

 

 

63,142

 

Operating expenses:

 

 

 

 

 

 

 

Selling, general and administrative

 

26,249

 

 

 

26,543

 

 

 

79,357

 

 

 

75,309

 

Research and development

 

14,660

 

 

 

12,843

 

 

 

43,863

 

 

 

33,785

 

Amortization of identifiable intangible assets

 

464

 

 

 

465

 

 

 

1,393

 

 

 

1,399

 

Adjustment to contingent consideration liability

 

 

 

 

 

 

 

(7,500

)

 

 

 

Gain on insurance proceeds

 

 

 

 

 

 

 

(500

)

 

 

 

Total operating expenses

 

41,373

 

 

 

39,851

 

 

 

116,613

 

 

 

110,493

 

Operating loss

 

(13,187

)

 

 

(18,443

)

 

 

(44,704

)

 

 

(47,351

)

Other expense, net

 

(373

)

 

 

(179

)

 

 

(337

)

 

 

(804

)

Interest expense, net

 

(1,750

)

 

 

(2,140

)

 

 

(5,152

)

 

 

(7,054

)

Loss before provision for income taxes

 

(15,310

)

 

 

(20,762

)

 

 

(50,193

)

 

 

(55,209

)

Provision for income taxes

 

(206

)

 

 

(578

)

 

 

(930

)

 

 

(629

)

Net loss

$

(15,516

)

 

$

(21,340

)

 

$

(51,123

)

 

$

(55,838

)

Net loss per share (basic and diluted)

$

(0.56

)

 

$

(0.79

)

 

$

(1.86

)

 

$

(2.06

)

Weighted average shares outstanding (basic and diluted)

 

27,472

 

 

 

27,110

 

 

 

27,412

 

 

 

27,150

 

See notes to unaudited interim condensed consolidated financial statements included in the Quarterly Report.

PAR TECHNOLOGY CORPORATION

SUPPLEMENTAL INFORMATION

(unaudited)

 

The following table sets forth certain unaudited supplemental financial data for the seven trailing quarters indicated:

 

Segment Revenue by Product Line:

 

 

2023

 

2022

in thousands

Q3

 

Q2

 

Q1

 

Q4

 

Q3

 

Q2

 

Q1

Restaurant/Retail

 

 

 

 

 

 

 

 

 

 

 

 

 

Hardware

$

25,824

 

$

26,390

 

$

26,777

 

$

29,590

 

$

31,343

 

$

28,390

 

$

25,073

Subscription service

 

31,363

 

 

30,372

 

 

27,965

 

 

27,908

 

 

25,170

 

 

23,150

 

 

21,285

Professional service

 

11,514

 

 

12,767

 

 

13,842

 

 

13,479

 

 

11,840

 

 

12,631

 

 

12,488

Total Restaurant/Retail

$

68,701

 

$

69,529

 

$

68,584

 

$

70,977

 

$

68,353

 

$

64,171

 

$

58,846

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Government

 

 

 

 

 

 

 

 

 

 

 

 

 

Mission systems

$

8,808

 

$

9,218

 

$

9,383

 

$

8,678

 

$

8,982

 

$

8,883

 

$

8,915

Intelligence, surveillance, and reconnaissance solutions

 

29,275

 

 

21,510

 

 

22,216

 

 

17,394

 

 

14,710

 

 

11,747

 

 

12,290

Commercial software

 

350

 

 

287

 

 

254

 

 

601

 

 

722

 

 

292

 

 

234

Total Government

$

38,433

 

$

31,015

 

$

31,853

 

$

26,673

 

$

24,414

 

$

20,922

 

$

21,439

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total Revenue

$

107,134

 

$

100,544

 

$

100,437

 

$

97,650

 

$

92,767

 

$

85,093

 

$

80,285

Non-GAAP Financial Measures

The Company reports its financial results in accordance with GAAP. However, the non-GAAP financial measures set forth in the reconciliation tables below are provided because management uses these non-GAAP financial measures in evaluating the results of the Company's continuing operations and believes this information provides investors supplemental insight into underlying business trends and operating results. These non-GAAP financial measures are not based on any comprehensive set of accounting rules or principles and should not be considered a substitute for, or superior to, financial measures calculated in accordance with GAAP. While we believe that these non-GAAP financial measures provide useful supplemental information to investors, there are limitations associated with the use of these non-GAAP financial measures. In addition, these non-GAAP financial measures should be read in conjunction with the Company’s unaudited interim condensed consolidated financial statements prepared in accordance with GAAP.

Within this press release, the Company makes reference to EBITDA, adjusted EBITDA, adjusted net loss, and adjusted diluted net loss per share which are non-GAAP financial measures. EBITDA represents net loss before income taxes, interest expense, and depreciation and amortization. Adjusted EBITDA represents EBITDA as adjusted to exclude certain non-cash and non-recurring charges including stock-based compensation, acquisition expenses, certain pending litigation expenses, and other non-recurring charges that may not be indicative of our financial performance; and adjusted net loss and adjusted diluted net loss per share represents the exclusion of amortization of acquired intangible assets, certain non-cash and non-recurring charges, including stock-based compensation, acquisition expense, certain pending litigation expenses, and other non-recurring charges that may not be indicative of our financial performance.

The Company is presenting adjusted EBITDA and adjusted net loss because we believe that these financial measures provide supplemental information that may be useful to investors in evaluating the Company's core business operating results and comparing such results to other similar companies. Management believes that adjusted EBITDA and adjusted net loss, when viewed with the Company's results of operations in accordance with GAAP and the reconciliations to the most directly comparable GAAP measures provided in the tables below, provide useful information about operating performance and period-over-period growth, and provide additional information that is useful for evaluating the operating performance of the Company's core business without regard to potential distortions. Management also believes that adjusted EBITDA provides investors with insight into factors and trends that could affect the Company's ongoing cash earnings, from which capital investments are made and debt is serviced.

The Company's results of operations are impacted by certain non-cash and non-recurring charges, including stock-based compensation, acquisition related expenditures, and other non-recurring charges that may not be indicative of the Company’s financial performance. Management believes that adjusting its net loss and diluted loss per share to remove non-recurring charges provides a useful perspective with respect to the Company's operating results and provides supplemental information to both management and investors by removing items that are difficult to predict and are often unanticipated.

EBITDA, adjusted EBITDA, adjusted net loss, and adjusted diluted net loss per share are not measures of financial performance or liquidity under GAAP and, accordingly, should not be considered as alternatives to net income (loss) or cash flow from operating activities as indicators of operating performance or liquidity. Also, these measures may not be comparable to similarly titled captions of other companies. The tables below provide reconciliations between net loss and EBITDA, adjusted EBITDA and adjusted net loss, as well as diluted loss per share and adjusted diluted loss per share.

The following tables set forth certain unaudited supplemental financial and other data for the periods indicated:

 

Three Months Ended

September 30,

in thousands

2023

 

2022

Reconciliation of Net Loss to EBITDA and Adjusted EBITDA

 

 

 

Net loss

$

(15,516

)

 

$

(21,340

)

Provision for income taxes

 

206

 

 

 

578

 

Interest expense

 

1,750

 

 

 

2,140

 

Depreciation and amortization

 

6,665

 

 

 

6,441

 

EBITDA

$

(6,895

)

 

$

(12,181

)

Stock-based compensation expense (1)

 

3,972

 

 

 

3,490

 

Regulatory matter (2)

 

 

 

 

415

 

Acquisition costs (3)

 

 

 

 

134

 

Other expense – net (4)

 

373

 

 

 

179

 

Adjusted EBITDA

$

(2,550

)

 

$

(7,963

)

1

Adjustments reflect stock-based compensation expense of $4.0 million and $3.5 million for the three months ended September 30, 2023 and 2022, respectively.

2

Adjustment reflects a non-recurring expense accrued related to our efforts to resolve a regulatory matter.

3

Adjustment reflects the acquisition expenses incurred in the acquisition of MENU Technologies AG in July 2022 (the "MENU Acquisition").

4

Adjustment reflects foreign currency transaction gains and losses, rental income and losses, and other non-recurring expenses recorded in other expense, net, in the accompanying statements of operations.

in thousands, except per share amounts

Three Months Ended September 30,

Reconciliation of Net Loss/Diluted Net Loss per Share to Adjusted Net Loss/Adjusted Diluted Net Loss per Share:

2023

 

2022

Net loss/diluted loss per share

$

(15,516

)

 

$

(0.56

)

 

$

(21,340

)

 

$

(0.79

)

Non-cash interest expense (1)

 

541

 

 

 

0.02

 

 

 

504

 

 

 

0.02

 

Acquired intangible assets amortization (2)

 

4,828

 

 

 

0.18

 

 

 

4,712

 

 

 

0.17

 

Stock-based compensation expense (3)

 

3,972

 

 

 

0.14

 

 

 

3,490

 

 

 

0.13

 

Regulatory matter (4)

 

 

 

 

 

 

 

415

 

 

 

0.02

 

Acquisition costs (5)

 

 

 

 

 

 

 

134

 

 

 

 

Other expense – net (6)

 

373

 

 

 

0.01

 

 

 

179

 

 

 

0.01

 

Adjusted net loss/adjusted diluted net loss per share

$

(5,802

)

 

$

(0.21

)

 

$

(11,906

)

 

$

(0.44

)

 

 

 

 

 

 

 

 

Adjusted weighted average common shares outstanding

 

27,472

 

 

 

 

 

27,110

 

 

 

1

Adjustment reflects non-cash accretion of interest expense and amortization of issuance costs related to the Company's 4.500% Convertible Senior Notes due 2024 (the "2024 Notes"), 2.875% Convertible Senior Notes due 2026 (the "2026 Notes"), and the 1.500% Convertible Senior Notes due 2027 (the “2027 Notes”, and together with the 2024 Notes and the 2026 Notes, the “Senior Notes”) of $0.5 million and $0.5 million for the three months ended September 30, 2023 and 2022, respectively.

2

Adjustment amortization expense of acquired developed technology included within cost of sales of $4.3 million and $4.3 million for the three months ended September 30, 2023 and 2022, respectively; and amortization expense of acquired intangible assets of $0.5 million and $0.4 million for the three months ended September 30, 2023 and 2022, respectively.

3

Adjustment reflects stock-based compensation expense of $4.0 million and $3.5 million for the three months ended September 30, 2023 and 2022, respectively.

4

Adjustment reflects a non-recurring expense accrued related to our efforts to resolve a regulatory matter.

5

Adjustment reflects the acquisition expenses incurred in the MENU Acquisition.

6

Adjustment reflects foreign currency transaction gains and losses, rental income and losses, and other non-recurring expenses recorded in other expense, net, in the accompanying statements of operations.

 

Nine Months Ended September 30,

in thousands

2023

 

2022

Reconciliation of Net Loss to EBITDA and Adjusted EBITDA

 

 

 

Net loss

$

(51,123

)

 

$

(55,838

)

Provision for income taxes

 

930

 

 

 

629

 

Interest expense

 

5,152

 

 

 

7,054

 

Depreciation and amortization

 

20,480

 

 

 

19,593

 

EBITDA

$

(24,561

)

 

$

(28,562

)

Stock-based compensation expense (1)

 

10,642

 

 

 

10,257

 

Regulatory matter (2)

 

 

 

 

415

 

Contingent consideration (3)

 

(7,500

)

 

 

 

Acquisition costs (4)

 

 

 

 

1,085

 

Gain on insurance proceeds (5)

 

(500

)

 

 

 

Severance (6)

 

253

 

 

 

 

Other expense – net (7)

 

337

 

 

 

804

 

Adjusted EBITDA

$

(21,329

)

 

$

(16,001

)

1

Adjustments reflect stock-based compensation expense of $10.6 million and $10.3 million for the nine months ended September 30, 2023 and 2022, respectively.

2

Adjustment reflects a non-recurring expense accrued related to our efforts to resolve a regulatory matter.

3

Adjustment reflects non-cash changes to the fair market value of the contingent consideration liability related to the MENU Acquisition.

4

Adjustment reflects the acquisition expenses incurred in the MENU Acquisition.

5

Adjustment reflects the gain on insurance proceeds due to the settlement of a legacy claim.

6

Adjustment reflects severance included in SG&A and R&D expense.

7

Adjustment reflects foreign currency transaction gains and losses, rental income and losses, and other non-recurring expenses recorded in other expense, net, in the accompanying statements of operations.

in thousands, except per share amounts

Nine Months Ended September 30,

Reconciliation of Net Loss/Diluted Net Loss per Share to Adjusted Net Loss/Adjusted Diluted Net Loss per Share:

2023

 

2022

Net loss/diluted loss per share

$

(51,123

)

 

$

(1.86

)

 

$

(55,838

)

 

$

(2.06

)

Non-cash interest expense (1)

 

1,594

 

 

 

0.06

 

 

 

1,484

 

 

 

0.05

 

Acquired intangible assets amortization (2)

 

13,555

 

 

 

0.49

 

 

 

12,941

 

 

 

0.48

 

Stock-based compensation expense (3)

 

10,642

 

 

 

0.39

 

 

 

10,257

 

 

 

0.38

 

Regulatory matter (4)

 

 

 

 

 

 

 

415

 

 

 

0.02

 

Contingent consideration (5)

 

(7,500

)

 

 

(0.27

)

 

 

 

 

 

 

Acquisition costs (6)

 

 

 

 

 

 

 

1,085

 

 

 

0.04

 

Gain on insurance proceeds (7)

 

(500

)

 

 

(0.02

)

 

 

 

 

 

 

Severance (8)

 

253

 

 

 

0.01

 

 

 

 

 

 

 

Other expense – net (9)

 

337

 

 

 

0.01

 

 

 

804

 

 

 

0.03

 

Adjusted net loss/adjusted diluted net loss per share

$

(32,742

)

 

$

(1.19

)

 

$

(28,852

)

 

$

(1.06

)

 

 

 

 

 

 

 

 

Adjusted weighted average common shares outstanding

 

27,412

 

 

 

 

 

27,150

 

 

 

1

Adjustment reflects non-cash accretion of interest expense and amortization of issuance costs related to the Senior Notes of $1.6 million and $1.5 million for the nine months ended September 30, 2023 and 2022, respectively.

2

Adjustment amortization expense of acquired developed technology included within cost of sales of $12.7 million and $11.5 million for the nine months ended September 30, 2023 and 2022, respectively; and amortization expense of acquired intangible assets of $0.9 million and $1.4 million for the nine months ended September 30, 2023 and 2022, respectively.

3

Adjustment reflects stock-based compensation expense of $10.6 million and $10.3 million for the nine months ended September 30, 2023 and 2022, respectively.

4

Adjustment reflects a non-recurring expense accrued related to our efforts to resolve a regulatory matter.

5

Adjustment reflects non-cash changes to the fair market value of the contingent consideration liability related to the MENU Acquisition.

6

Adjustment reflects the acquisition expenses incurred in the MENU Acquisition.

7

Adjustment reflects the gain on insurance proceeds due to the settlement of a legacy claim.

8

Adjustment reflects severance included in SG&A and R&D expense.

9

Adjustment reflects foreign currency transaction gains and losses, rental income and losses, and other non-recurring expenses recorded in other expense, net, in the accompanying statements of operations.

 

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