Q4 2020 PAR Technology Corp Earnings Call
Joseph
ATS is, thank you for standing by your call has cost to get a momentarily. Again. Thank you for standing by your conference calls have to give momentarily. Thank you.
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Thursday Thursday, Thursday Thursday
Ladies and gentlemen, thank you for standing by and welcome to the part technology twenty twenty fourth quarter and year-end Financial results review conference call at this time. All participants are in a listen-only mode ask to speakers presentation. There will be a question-and-answer session to ask the question at that time, please press star one on your touch-tone telephone call is being recorded. I would cost over to your host Mister Chris Byrne vice president of Business Development. So you may begin
Thank you Valerie in good afternoon to everyone. I'd also like to welcome you today to the call for parts twenty twenty fourth quarter and year-end Financial results review the complete disclosure of our results can be found in our press release. It should this afternoon as well as in our related form AK furnished to the SEC to access the press release and the financial details. Please see the investor relations Page News section of our website at ww.w. I also want to ensure that all participants today have access to our earnings presentation and Business Review slide deck them use later in the call to better communicate the momentum in our software business individuals on the webcast should have access to the deck when they logged onto the call this afternoon cuz it was just dialing in on the table app called the presentation can be accessed on the investor page of our website. And we also included as an attachment on the day. We filed this afternoon.
at this time, I'd like to take care of certain details in regards to the call today participants on the call should be aware that we recording to call this afternoon and it will
Be available for playback. Also, we are broadcasting the conference call via the World Wide Web. So, please be advised if you ask me question, it will be included in both our life conference and any future use of this recording. I'd also like to remind participants that this conference call includes forward-looking statements that reflect Management's expectations based on currently available data. However, actual results are subject to future events and uncertainties the information on this conference call related to projections or other forward-looking statements may be relied upon and subject to the safe harbor statement included in our earnings release to Thursday afternoon and in our annual and quarterly filings with the SEC.
Joining me on the call. Today is our CEO and president savneet Singh and Bryan Bernard Parks Chief Financial Officer and now like to turn the call over to savneet for the formal remarks portion of recall, which will be followed by General Q&A 70. Thank you and good afternoon to everyone on the call today. I hope you and your families are well and healthy during these challenging times wage. I communicated to you last quarter twenty twenty presented incredible challenges for our company and the global economy as a whole and I've. Squats all those impacted by the global pandemic as I look back in 2020. I feel humbled at how hard our team worked. I need to live our plan but serve our customers are focused on long-term returns customer Obsession and product development helped us in the year on a high note into twenty-twenty with the best bookings quarter in Japanese history continuing strong momentum from Q3. We we enter the year of the largest backlog in our history, which should set the foundation for a very strong twenty Twenty-One. This rapid growth has encouraged us to continue to age
Heavily into our product and for the first time in my ten year make investments in sales and marketing while the year presented a myriad of challenges with you many of these challenges as creating opportunities that par is well positioned to take advantage of Our Own no positions stronger than it was a year ago with more than $180 in cash on our balance sheet at your end. Well, we'll touch on the financials of it later. I want to highlight upfront on our ebitda performance in 2020 as many of you know capital is a discipline that part owned by all during the crisis. We radically changed our spend designing focused almost all of our investment in to our software product Roots bistro bar results later in the year the same struggles with the pandemic the almost-full shutdown of our business for seven weeks and our continue investment into our R&D investment in software are reporting Yuba. Came in and around the loss of $13 per month will feet when you realize that twenty-twenty represented the most difficult operating. For the restaurants in history. Our company tightened our belts early on position the company to produce cash burn without sacrificing the ability to accelerate our strategic in, New Jersey.
It's regarding products and people are client base is large and diverse with thousands of restaurants around the globe using Park products and services that customer base represents our greatest asset for both future sales opportunities and the page currently produces restaurants are living through a dramatic change in their operating business models technology will get the center of that change. We are building par the we're building at part of the platforms of lean into this time. There's no question that the volume of software purchased by restaurants will grow tremendously over the next decade now to briefly review the fourth quarter reported numbers before Brian gets further detail in Q4 report. We would have been years of 58 and 1/2 million dollars an increase of 10.6% when compared to Q4 2019. We sell of Revenue growth across all of our segments today. We also reported a gaap net loss of $13 for 6 months or share compared to a gaap net loss of 5.8 million dollars for thirty-five cents per share in the same period in 2019 on an adjusted basis non-gaap net loss for the fourth quarter of 2020 with 8 million dollars or $37 a month.
Sure compared to a gaap net loss of 3.8 million.
Or 23 cents per share in the same period in 2019 now moving to our business performance. If you jump to slide through the presentation, you'll see a snapshot of brings performance and Q4. I'm very pleased to report record 1525 new store bookings in the quarter a 67% improvement from Q4 and 2019 and a 29% increase of a sequential Q3. I think this metric more than any other truly Democratic momentum in velocity of her class point-of-sale software offering Q4. Brink bookings are the highest number of signed orders and a quarter in our history highlights dramatic demand for the brink product as the slideshows reported off point seven million or 29% increase in the same quarter last year as dependent Dynamic continues to slow down. We expect to see an acceleration in our activations as stores begins open and normalized to our traditional activation phase said Thursday at stores open RAR should accelerate alongside our bookings. If you advance the slide for you can see that we now have 11722 active stores and are reported backlogs at the end of Q4 dead.
With 2,500 and 46 doors gets to be installed entering 20-21 with over 2,500 stores in signs backlog since the foundation for a very strong year again, as our customers began to open. See you next Generation activation. That should help bring this back logged out. We installed $885 you bring stores in queue for a 42% increase in 219 remarkable accomplishment during the pandemic God will continue to work with our customers regarding regarding implementation scheduled along with the enhanced in to our safety protocols to ensure our book-to-bill sequence is as seamless as possible on five five. You can see the AR waterfall over the last five quarters of the continue to grow are are I'm proud of our consistently annualized low turn rate of 5% in Q4. This is the fifth consecutive quarter that our annual return rate has been at or below 5% and is a testament to the stickiness of or software offerings in the strength of our Enterprise customers to date we have yet to lose a customer exceeding fifty stores size six shows the Improvement in COVID-19 returned and our improves out the minimal impact that the code that COVID-19 is dead.
On store closures in our camp and inspiring strength of our customers in Q4 cold related Sharon was at a low of 3% of our overall basically continue to work in a sixties affected customers to get back online and open their life. These metrics are very positive signs for our business side seven shows restaurant magic being impacted in the quarter of due to the pandemic and the spike of infections. If you for bookings report in the quarter were a hundred forty-six was worth 8.8 million dollars combined with bringing restaurant magic is now thirty three and a half million dollars at the end of Q4. Friday gives a current site count for restaurant magic with install stores now totaling $59 off on flight nine report an approximate one and half million dollar increase in brink related Hardware revenues from cue from the end of Q4 last year a 22% increase we continuously robust demand for for the complete party solution of software hardware and services and the capability to provide our customers. We're encouraged by our continues to run performance and look to expand our market share consistently now to quickly review our product and Hardware business in the quarter. That is our point-of-sale platforms.
and drive-thru Communications business
Medicare I'm using a quarter increased by 8% from 2 for 2019 and it's been performing well during a very difficult COVID-19 environment as I briefly mentioned earlier are integrated offerings a complete solution continues to be adopted by customer. I'm pleased to see the performance and product sales from Marquis phone number and to deliver this performance in a very challenged capitalist environment is nothing short of remarkable now to review our government segment our government business delivered a solid quarterback evidenced by the six and a half percent increase in revenues compared to Q4 2019 our contract backlog at the end of Q4 was $151. As of December 31st, 2020 are Intel Solutions wage was the driving force behind the growth in the quarter as is our revenues increased 4% from last year's to 4. We continue to seek out contract opportunities where we can leverage our decades-long experience and our performance Excellence specifically page added Revenue contracts that include more direct labor and high-tech contract work within our is our business line. Now some takeaways on our companies are in our company coming out of twenty-twenty.
Restaurants are looking for a platform to handle the rapid growth in Seattle transformation today restaurants suffer from dozens of different and disparate products styled and locking the modularity and make the solution work. We are building that connected platform off parts and services are new all-in-one Payment Processing Solutions continues to be reduced the marketplace. Although we are very early in this initiative. I'm confident overtime. This would be a long-term Drive Revenue growth for our company part payment services will give our operators off the opportunity to take advantage of fantastic rate streamlined process and ability to offset Harbor cost with our strength and balance sheet. We intend to be active in the m&a space as we continue to build out our software platform. All our focus is on adding additional software products that are featured function rich and will allow us to increase our subscription rates and make a sticker with the customer an average month to bring kpi is paying almost $500 million times this risk dataset gives them a unique angle to valued Partners in future Acquisitions to recap the last two years have been inconsistent. We change for our our team our business our products and most employers. Our culture have changed dramatically. We have listed a globe.
Hammock acquired new businesses investing our products and it push our boundaries for them ever before we've added hundreds of talented employees, which is creating energized environment and built on our stories history, and now feel strongly. Our truck is ready to set the stage into fine with the restaurant. The future will look sound and feel like for too long technology has been a zero-sum game for restaurants creating a wedge between them and their guests were confident the changes. We made up our set the foundation to page as always. I'd like to thank our employees partners and customers for their commitment to our business and hard work and helping us achieve such extraordinary success during these challenging times of the pandemic and with that. I'll turn the call over to Brian for more details of phone numbers and then take your question Brian. Thank you and good afternoon. Everyone product Revenue in the quarter was 21.8 million and 1.6 million fifty percent from the twenty point two million record in the prior-year during the quarter. The increase in product. Revenue was primarily driven by a 2.4 million increase of drive-through Hardware Sales.
Additionally, the hardware associated with deployments that brings increased approximately 1.5 million or 28% versus the prior-year fourth-quarter offsetting these increases or decreases. So sick with our traditional tier-one Hardware customer's service Revenue that includes revenue streams for my subscription software was reported at eighteen point three million an increase of two point nine million or 90% in the fifteen point five million reported in the prior-year fourth quarter, the company continues to expand a recurring Revenue base, which includes both software related services and Hardware support contracts.
Intel
Return software revenue streams contributes 3.1 million of the increase in service Revenue the company continues to gain momentum of a supply of brink POS and restaurant magic building a 3.2 million month 85% increase in software-as-a-service revenues as compared to Prior year including 2.2 million related to the restaurant magic acquisition.
Of the eighteen point three million of service Revenue recorded in Q4 2020 14.7 million or 80% is comprised the recurring Revenue contract as compared to 10.9 month. We're seventy 1% of service Revenue in Q4 2019 contract revenue from our government business Was Eighteen point four million an increase of one point 1 million or 6% off from 17.3 million Accord in the fourth quarter 2019 is the result of an increase in value is our contract and subcontract revenues contract backlog am noting a total backlog of over 151 million as of December 31st.
Not turn to Martin's product. Margin for the quarter was 17.4% versus 19.5% in Q4 2019 the 2.2% decline in profitability as a result of the disposal of inventory related to the acquisition of assets of the drive-thru Communications product line. We reported unusually low service gross margins during Q4 2020 is dead was primarily driven by one point five million service inventory Justin's point four million of disposal of inventory related to the acquisition of assets and subtracting Communications product line point six million in service level Craig's point three million for increased investment in our call center service barring for the quarter was 13% compared to 32% reported in the fourth quarter of last year, excluding the charges expressed above off. The service mortgage would have been more in line with historical service margins.
Government contract marks are 8.3% as compared to 9.9% for the fourth quarter 2019. This decrease was driven by our mission systems line of business impacted by contract rated life and loss Reserves.
Gaap sg&a was thirteen point six million an increase of 3.5 million from the 10.1 million record in Q4 2019. The increase was due to one point two million increase of variable compensation went eight million of expenses for recently acquired restaurant magic point six million increase in corporate support services and point eight million increase and Investments for restaurant sales marketing and management office warranty was 5.69 F, 1.5 million or 36% and 4.1 million according to 4 2019 majority of the same price is due to soften. It's made for the acceleration of blinking restaurant magic product lines and Hardware Investments primarily and our drive-thru product line.
Twenty fourth quarter of 2020 the company also recorded a million for the reduction to the contingent consideration liability related to the restaurant magic acquisition.
That is
Provide information on the company's cash flow and balance sheet position for the year ended 2020 cast used. My operating activities was 20.2 Million vs. 16.1 million for for 2009 primarily due to increased net income loss cashiers and investing activities was nine million for the year and a 2024. So 24 million 2019 and 2020 G expenditures would 1.3 million vs. 2.5 million for the prior-year capitalized software associated with the Investments for various Hospitality software platforms for the year and the 2020 with 7.9 million vs. 4.1 million for 2019 and 2019. We use twenty million of cash for the restaurant magic and drive through Acquisitions and received two point five million in proceeds from sale the search icon decline cash provided by financing one point seven million for Thursday.
Or ended 2020 versus cash provided of 65.6 million for 2019 during the year ended 2020. We received net proceeds of 131.4 month for a public stock offering in the fourth quarter. And in the first quarter 2020, we received net proceeds of 115.9 million for our sale of the 2026 notes off of which approximately 66.3 million was used to repurchase a portion of 2024 notes.
Inventory increased from December 31st 2019 by 2.3 million but important to note we reduced inventory by five million sequentially from quarter ended September thirtieth two thousand off accounts receivable increased 1.2 million compared to December 31st, 2019. I'm really due to increased revenue and the restaurant segment.
These outstanding improved within the restaurant and retail segment from 77 days at 12:31. 2019 is 74 days the twelve-thirty. One two thousand twenty days outstanding improve within government 3:58. Thursday at 12:31, 2019 251 days at 12:31 2020. This concludes my formal remarks and would like to turn the call back to Valerie for questions. Thank you, again, ladies and gentleman like to ask a question, please press the star then one on your touch-tone telephone. One moment, please.
Our first question comes from Samad Samana Jeffrey Helena's open.
Hi, good afternoon. And thanks for taking my questions. So maybe want to dive in a little bit. Just you know, the acceleration comment for are are really stuck out to me. So if you could maybe just help frame that a little bit better how we should think about that. That would be helpful starting point. Sure. So we've had a you know, in the last two quarters of had a tremendous job growth in bookings and remember part, you know bookings are signed order. So they're they're real commitment from customer. Those bookings have generally are on a 68 we book to bill cycle. So historically been able to turn a booking on into Revenue within six to eight weeks during the pandemic that's being elongated as we've got to work through not our own requirements that the requirements of our customers to get into stores. And so as a result you've added very very large backlog build up with almost 2,500 signed orders waiting to be installed as the pandemic weans down. Our ability to get into stores should become easier and easier and we're getting just the
see that right now and so you
We'll see this backlog burned down and turn on very aggressively after that. So, you know, our goal over time is that a you know are booking shouldn't should be are you know, relatively close to our faith in quarters. If not, always that linear but right now I think it's it's two-way to the other way because of the pandemic and so again as a pandemic comes down or illegal to launch and activate stores accelerates back to kind of historical Cadence am able to burn down some of this this large backlog. And so to me, it's incredibly exciting, you know, we've got enormous amount of the Year already booked and the year hasn't even kicked off and so we'll be able to I think of a really really strong 20 G as a result.
Great, and you know maybe just another follow-up on the bookings. Obviously just a really strong quarter. They're considering you add as many as you did in the first half of this year and last year I can you help us maybe think about in terms of those bookings how much of it what it was it, uh, the average number of either sites or just helping us double click into that. Was it more driven by a larger qsrs. Was it more Blended from across the Spectrum? Just how should we contextualize that fifteen hundred plus bookings number? Yeah. It's a fantastic question. So I would say in two months before we saw growth across all segments, obviously when you have that type of growth, but we saw, you know more accelerated growth kind of in our mid-market. The hundreds of stores is supposed to thousands of stores, which has been an emerging segment for us and helps balance without actually. So, you know, when they're we had a couple multi hundred or unit chain wins. And so we saw a lot of growth there. And then I think if we were to talk pipeline, we saw the most growth and pipeline in the very large store wage.
Which I think we bodes well for a strong 20 21 on that end, but I'd say we had growth across all segments. The biggest growth that was in that kind of mid-market of you know hundreds of stories were thousands of stores great and maybe one last one drink before Switching gears, but I know pay payment is in your opportunity and it's still early days, but any color around maybe TV so far that's running through par payments or where the take rate that you guys are getting out at. I understand not wanting to to give away the juice to potential competitors, but God we think about the the early traction there.
Yes, I think it's up to the end of two for it's probably true as anything that's instructive. You know, Q1 was a really our first real quarter of actually selling the products. So I would suggest what we learned in Q4, I think was encouraging we we've learned that the rates that we we sell to our customers are attractive. So i e them switching to the to our payment product. It's not going to cost them more second. I think I think the time here is is quite large. I think our ability to offset Hardware costs with with payments over time is a really powerful addition and I think as we sort of indicate I think our take right here if we were to suck into at a crate, you know, if we were to sort of look at the average set customer that we think would come onto to our product line. It roughly doubles are arpu per store. So if you ever store Brink today is around twenty one hundred bucks. We think we'll get another $2,100 to $2,500 per store that we turn on two payments. So it's not so much to take great but a fixed fee per transaction model which is how the Enterprise operates first down Market where wage
is very much a spread business and if you
Sort of back into it. You want to put it back in the basis points, you know that sort of 25ish 230 basis points.
Understood and and maybe one more for me, you know, if I think about the restaurant magic, you know obviously has been impacted by what's going to depend emack. Can you maybe I know it's tough to look at the crystal ball, but how should we think about maybe with the durable growth there? Looks like um, I know right now there's it's being depressed but it'd be helpful to understand that. Yes, if you look at the booking a restaurant magic bookings are very sensitive to the pandemic and if you sort of look at you know, we had good bookings in Q3 and you know, that's sort of the result of the summer openings and two four we had weak results with obviously a lot of strep in November December and and the pandemic coming back. So I think this is you know as the pandemic slows down here. Is that vaccine pick up this is just to get back to that normal Cadence of you know, it should be growing as fast as bring home. There's no reason to shed and one of things we've done is, you know, after the one your completion of the transaction and you're not that we had with with with with the founders, we now integrated restaurant magic fully and so that's safe.
Old notion is now coming out of the broader parcel team. And so they will have nice attachment as opposed to treating a separate product. So I think as the pandemic healthy comes down to an end or just to a low base wage should be growing at the same rate of brink I can make appointment faster, but this should not be growing any different than Brink in a sort of a normalized world.
Great. Thanks for taking all my questions guys, and we've got some strong bring books and supporter.
Thank you. Our next question comes from Steve and Sheldon William Blair. Hey, thanks the first one for some of the larger thousand plus I thought about in the pipeline. Can you maybe roughly frame how long it take those big Brands to maybe push higher adoption of brink within their own site base and their franchisee site-based.
Yeah, so I would say any large wins their own site based comes very quickly. So we were to sign a large customer. We would we generally are able to start turning on their store and stores corporate-owned store is within within a quarter. It's relatively quickly. We've seen that with you know our big when excuse me that we know it's last quarter and I think we'll see that in the next quarter's we announced more of these winds. So that's generally the corporate store has come very quickly. Cuz a lot of the work to get us going is there and then I think on the non corporate owned stores the franchise stores depending on the size, you know, but the multi thousand it's a couple of your process to get through most of them, you know, if I look back in our prior business, you know Five Guys with a couple of years, you know, I think some other customers or three years, but it sort of in that two to three year window you can get to the rest of the page. Now the pandemic has changed things and change things for the better, you know, our our our our our sort of next large customer that I think we'll find, you know, I'd expect us to get through Thursday.
At a much more rapid Pace the normal because again, this pulls there where we're seeing that it's not just about picking brings up reading Greek live and they're kind of in that that that same bucket of us is like we both want to get live really really fast. So wage historically we say two or three years for a very large customer person of a medium size customers within the year. Um, I think we'll see that two or three years on from
Then your logos we sign come faster because they've kind of jumped in, you know, as a result of learning to learn from the pandemic. And so I think that they're needed their need is almost a cute as opposed to this is something we have to do. This is something we must do home. So I think we'll see some really potential for some of these sales Cycles to get smaller.
Got it. That's helpful on the between Brink and restaurant magic. I think you talked about some some integration on go-to-market side. So maybe an update on that page and plans to to to better integrate on the product side and what that could potentially look like from a client's perspective in terms of ease-of-use and functionality. Just any detail on the integration process there with ya on the sales and marketing side. We we are integrated. And so the team that drives the go-to-market is now one team and so marketing is coordinated in sales is run by the same account page team and the same go-to-market team that runs Brink just creates incredible amount of Simplicity for our customer, right? They're not talking to different account owners. They're not they're not dealing with sort of different pricing different building it all sort of looks as want but you know, I think equally important for us is that it it it it doesn't allow an opportunity for a new account not to look at the product not to sort of have the opportunity bundle that product. Um, and so I think there's just, you know, yep.
Logitech on the product side as we sort of move forward to the more modern infrastructure of brink the products have to speak to each other. We're not in the business of sort of buying Revenue. We're in the business of building great product and these products will begin start talking to talking to each other. So what does that mean from the most simple of sense that these products have something like single sign-on right? You shouldn't have to find about productivity whatever time you should be able to take the data from both systems and have actionable insights to come back to the to the to the to the restaurant manager owner of the franchisee. And so we think that's the next level and so we are beginning that sort of project in literally. I think we take out a week or two ago and so will start to integrate their products more closely again in this year, which will help I think our customers see the value of bundling it up front.
Great. Thank you.
Thank you. Our next question company. George said no craig-hallum Yolanda so.
Thank you. So I need you made a general technology, you know future of restaurant technology statement and obviously major chains have been laying out some new formats that integrate things like drive through and and pickup and delivery. I'm I'm curious how you feel. You're addressing that new area of opportunity relative to your legacy competitive players.
Yeah, I think that change is part of the you know, the growth and bookings that we had. You know, I never would have dreamed, you know, six months ago. We'd have our best, you know growth forever and to 4 I think it's it's worth it. A lot of what you're saying is what's driving that which is if I'm the the CIO or CEO that restaurant organization. I always knew I had to upgrade because I needed you know, all the innovation of online ordering or QR code pick-up or payments wage. I think what's changed though is the formats are changing and they're changing and no one yet can probably predict that future. Is it going to be a virtual kitchen a ghost kitchen and our kitchen the drive-thru kitchen, how does this all going to connect together? And so it's crazy input as to which is I have to have a very very modern infrastructure so I can be agile and adapt to whatever that that change might be. So I think it's it's it's definitely helping us. I mean, like I said the last call again continuation off the bookings were getting are are really just coming out of the page that we're just trying to keep up with and similarly. The pipeline is growing because again, I think you as the restaurant owner or contact phone or excuse me are a dog
Now where you just can't wait and so that's what's really.
Andrew a lot of advantages to that demand but I think it's part of the whole story.
Perfect. And as you talk about bringing a our our growth the bookings growth in the ARR growth together, you mentioned one thing on the call constrained Capital spend and then we also have obviously the COVID-19 restrictions in terms of implementations. Can can you buy for Kate how much of an impact both of those have been relative to that? I'm sure so it's it's it's it's the capital spend was more tied to our Hardware business where we would really encourage that in this sort of Market where our customers are definitely keeping their eye on their own. No wallets. They continue to invest in our Hardware Solutions in our Service Solutions. So we've been very encouraged by that as it relates to to activation. This is just a matter of literally turning stores on and that's where we have limitations where certain Concepts, you know, don't allow not employees or in stores or they want a much more structured rollout schedule because again controlling exposure to their to their and markets so that limits our ability job
The store is rolled out until we get there. Another example is you know as they're in state by state that different uh-uh regulations on, you know, quarantining or visiting. So if we had an installer in New York who had to go and Samsung in Massachusetts he or she would have to come back to New York. They'd have to quarantine get a COVID-19 test. You had didn't have the capacity as you normally would as we've seen these restrictions come down as we've seen States open. We'll see we'll see the the sort of book The Bill process come back to our more traditional sense, I believe and so this backlog which is an incredibly exciting and will burn through it will start to again get turn into Revenue life. And so, you know, we still active 885 stores, you know, which is pretty tremendous in this environment. But as these limitations come down, you'll see that number continue to grow and and the heir AR with it and so we're really excited.
Great stuff. Thanks, honey.
Thank you. Our next question comes from.
Hi, good afternoon. And thank you for taking my question great quarter and regular guys given the circumstances of COVID-19 in the early spring locations in a home or an incremental addition of Nineteen Hundred locations year-on-year and just over a hundred million of a r r which equates to about 53,000 of a r r for those incremental locations. That's obviously not going to be the correct way to think about it. As you have presumably had up cells and incremental increases in revenue from existing locations of Q4 2019. Can you give me a breakdown of what the new signings are going out as well as how the existing locations have been up sold and particular how the part payment services has been working out, please sure, so I would be the the the store signed and Q4 are I say in line with our continued sort of price point of roughly $170 and 5 bucks a month.
for store
Number has grown, you know the last two years and I think we'll continue to go over time and and and I don't know the exact number but it's around the same point same same price. I think over time that number that you grow as we've had this expansion in the mid Market where price is higher than our conditional tier-one. So I think we'll continue to see that that growth has all been priced driven. It hasn't been module driven yet and I'm growing that price from you know, a hundred fifty-eight bucks to whether I forget hundred 7580 all through price in time and we module based we haven't had a module to upsell historically restaurant magic is really the first upsell a product that's not going on. And as I said now that we've just combine the sales forces earlier this year. We'll see some some nice traditional arpu expansion there on payment services. I just answered that in the last question or two questions ago, but we're in life before we launch our beta we had great success with the beta obviously not a ton of customers purposely. So but we saw that our rates were competitive. We saw that we can make money with it. We saw that there's value to be on customer.
We learned a lot we learned that our ability to offset that Hardware cost is a real advantage to our customers. So instead of taking the capex to upgrade your Hardware we can take that on provided we recoup it in payments at a an Android that deal is incredibly high or for parts. So I think the path and 20-21 is exactly what you're suggesting which is we've got an incredible amount of of just backlog and revenue that has to come out the door. You'll see really strong Revenue growth. And then that Revenue growth will come not just from sites which is historically been completely a revenue goes. It's been a hundred percent tied the site growth will start that will start changing to psych growth plus one module. Do we also offer was payments, but it was back office and hopefully more and more as we acquire or build along that that framework
Great. Thank you very much. Just want to follow-up. Do you have a view on when you might get to a bit too positive or positive net income? So I think it's it can be very dependent on our growth if we deliver our growth projections in in 2021, you know, I would suggest we should continue to burn I don't think we're going to burn a lot of money, you know, took out the door cash balance in in but it if our growth slows down we can we can quite quickly turn the business back to to to Breakeven. The levers are there already for us to get the break-even. We are making a tremendous Faith estimate in R&D spending. As I mentioned. We should have just made our first investment in sales and marketing spend which is leading to obviously from the great results that we have now so we could turn on turn that on if we needed to but I think for the next year or so we want to continue that dramatic investment cuz we're seeing, you know, great results from it and given how low turn the bass is how much we think we cannot sell. I just need to tell TV continues to expand, you know, pretty considered dead.
Right r l t you know in 2019 and 2018 and 2020. I mean it's a lowest will ever be cuz it was a single product company that you know didn't have the product and service capabilities to actually serve that customer base. Now. We're you know a multinational company with the ability to actually up-sell and you know the ability so, you know, I think it's it's there's a the LT Buick equation is is incredible we will invest along that again, if every month or whatever it was not keep up this growth we can send out to pick it on so I wouldn't be surprised if if the business has it today is profitable and 2022 but it's same time of Revenue growth accelerates as I think it will you know, it might be an argument for us to to not suck. So I think we're Dynamic with how we allocate capital and and I think we'll we'll sort of, you know, see how the first couple of quarters go and can you know potentially give some guidance on that but I'd say we can turn this problem by the end of the year. If we need to I'd argue if we see the girl that I think we're going to see we'd probably you know, wait put on that that that that goal.
Thanks very much.
For taking my questions. I completely agree focusing on the growth. Should it be there as a way to go for it and you know increasing the market share of that's that's what you should be doing. Thanks so much.
Sir, thank you. Our next question comes from on your hi thank you for taking my questions and congratulations on a great quarterback. Not a good question to ask already, but I'm just curious to see in the sales and marketing the progress you may there. Do you have more changes to be made there to catch? Sure?
We do we are you know in in Q3, we restructured our department in Q4. We put in a new head of sales and you had a marketing. You know, we've seen you know, tremendous results ready. We just went through a Rebrand and you know, I think for the first time will start to see you know, it's a nice investment been there. I'm really encouraged by this. You know, as I said, I did not attach the results to come so quickly and I think we'll continue that part of that sales and marketing spend is not sort of what you think of go sign the next big logo or go to a Big Brand marketing campaign. It's also just getting much more kind of about our existing customers. We have not only do we had sort of these 2500 Plus stores that are waiting to be installed any of these are signed orders waiting to be installed at then. We also have a nice amount of white space in our existing logos that we have yet to sort of mind if you will so we have a number of customers that we are, you know fifty percent penetrated in that we need to get to 100% And so some of our investment is also going to be how do we
Attacked with customer base has more effectively. And now that our product is is is finally, you know, it's a point where we feel comfortable turning on that spend, you know, where it will be seeing the result of that spend and you know, I think is a great demonstration of that. Okay. Thank you and you wanted into that to the rebranding. Have you got any initial feedback on that?
We have so we focused most of our initial Rebrand, you know, we we put it out publicly a week or two ago. And we focused on it first internally to our customers and partners in the next quarter will go out externally and wage in the feedback. But so far the feedback has been been been quite positive. You know, I would say if it's not as much about the optical Rebrand, but it's also sure what is that brand mean to our customers. What is that brand promise? What are we looking to achieve? Pardon me the lot of things a lot of people that's not the rest of your success. We sort of need to sort of say this is what part stands for and and help drive that change and so a lot of work is going into getting that out there. So I I would expect us to uh, except for you to see a lot of stuff coming out in Q2 the month of the quarter of Q2 externally that helps kind of lay out. What is that brand promise mean? What is what our customers think when they see it but so far it's been really pause and we also engage our partners suppliers are employees and and made it a little bit more of a collective endeavor.
Okay, thank you. And that would the front backlog you have and and as you say you're going to be able to accelerate the installments at the office. We're getting through the pandemic. Do you have the capacity to to do those install owners or is that going to be like a slower progress?
Said most of the the limitations in getting out has been you know, purely pandemic driven, you know in December, you know, January February we had you know, many of our customers said listen we want we really need Brink will sign the order form and and commit to it. We just need to slow our roll out because we're trying to limit the amount of non employees in stores. And so it was a little bit out of our control as I think this big store is opening is a huge huge Boom for us to sort of accelerate those activations coming coming in coming forward. So it's not so much our own capacity. It's it's very much right now at the the the limitation of our customer who I think you are looking the same data, we're looking at it and that feeling more comfortable at it. Okay. Thank you. That was all for me.
We do have the capacity as I
Thank you. Again. If you'd like to ask the questions his first start and one on your touch-tone telephone. Our next question comes from Adam Wyden of its open.
Hey guys, terrific terrific quarter coming out of COVID-19 really excited about what you guys have in store. So I'm going to take a step back cuz I feel like a lot of these cars have been super short term and it's it's kind of pissing me off. But I had a couple kind of high-level questions for you. You know, McDonald's announced that they were investing Dynamic yield. You guys are clearly piloting inside of Taco Bell. We've seen it in the stores. You know, I I use this as an analogy, you know, what attracted us to bring in par initially was the scalability and the ability to get you know, bigger customers and when you look at toast you noticed has grown a hundred but you know, they're getting ones whose Tuesdays and it's you know, it doesn't scale, you know, once you get home, you know fifty thousand customers, you know, it's much harder to grow 50,000 customers when you're adding One restaurant at a time, you know, you got five guys then which led to a bigger announcement with birth.
Arby's which led to a bigger announcement was c k e which leads to a bigger announcement to Dairy Queen. So Dairy Queen. 5,300 units, you know, you're doing 3500, you know, three thousand 3500 off to you know, fabulous. You know, my question to you is now you know, everyone said McDonald's was going to build their own point-of-sale system there clearly taking a step back and divesting. You know, you're in Taco Bell dog, you know, you're getting deeper and deeper with inspire. You know, Jimmy John's Sonic Buffalo Wild Wings all fair game. I mean, can you talk to me about the potential of winning? You know a I guess what would be a 4 4-Digit unit chain, you know because right now you're at eleven thousand seven hundred units, we know that's going to grow but I mean, you know, you can win a seven eight nine ten thousand unit chain and double the company, you know, and that that to me is called the the Holy Grail here relative to toast and then that that, you know, please answer that now I want I can have a follow-up around it. Let me first say this will double the size of the company with the existing customers wage.
You know, we're not, you know going to tremendous amount of stores that are in backlog or the yet to be installed of our existing logos. And I think we'll we'll double the company just from that. There's just a ton of white space as they call it to to to get. I'm I'm I'm running into you customer names but you know number of our large customers. We're not even halfway through right? We we've got so much white space to 2 to excuse me. So, I think we'll do that as early as we're competitive positioning and Industry Dynamics. There's no question that there's never been a better time to sell the product that we have large restaurants. I think have made the decision that they need to build and partnership wage, but people like ourselves to make their technology Vision come through twenty years ago a company building its own software its own point-of-sale made tremendous sense because their competitors couldn't build the product as well gave them a call back today software companies build better product than restaurants on average and and I think will be on on average. I don't think that's debatable. And so I think that the idea that you're going to keep a captive point-of-sale system maintain the innovating
for that system on your own is a
Honda cost and burden for an organization. It doesn't focus on building software, you know think of it this way if if I was had a large restaurant organization the technology Development Group would be an important part of it, but I don't know if the best talent the best way to go to that part of the organization and as opposed to a software company where that's all the talent and so I think that shift is there that shift and sort of desire to sort of build building partnership now sort of dominates the ninja thing which wasn't there just a couple of years ago. The last thing I'd say is our position relative to competitors is getting stronger and stronger lets us growing to 1,500 plus booking in in 1/4 is is incredible but it's it's as much money as much of our competitors not being able to keep up with with the industry dynamics that we've seen as it comes in a few weeks and sort of start to get some more of our customer wins and talk more about our pipeline wage a lot of this. Is that our large customers like hey, I want this change in technology now and then not being able to find provider that can give it to them in time or the flexibility modularity that we can do it Thursday.
And so the long-term very positive has been really been implemented in the cloud. I mean, there's some Legacy Legacy Aloha kolay and stuff like that. But from what we understand, you know, no one has there has been no real successful deployment in a in a purely Cloud technology in over a couple hundred units. I mean, we know that Burger King did an RFP and toast basically said, you know, we we can't we can't do it we can't do the customization. So at least unless unless our Channel checks are bad. Our understanding is that there has been no successful school, you know fully Cloud deployment in a chain more than you know, a few hundred units. So like from what we understand you guys are literally competing with yourselves. Am I am I looking into this the wrong way?
I don't think so. I think the best way to say is we compete against incumbency. It's very rarely against a competitive solution where we feel like we don't have the edge to win when we lose. It's it's incumbency and I think the pandemic is really sort of a challenge. I didn't compensate which is can I really survive with with the vendor that I've been with for the last decade that hasn't made these Innovations. So that's how I look at it which is we're competing at incumbency more than we can do about it gets any specific competitor off. Okay that that that that that makes sense. So I just want to ask you to ask you something else. You know, there there was a slide on Twitter. I think it was from one of you know, totally kind of go to market kind of test the waters deal where they talk about the the SAS Pro restaurant of addressable market and like 40 to 50,000 not including payments. So, you know, obviously you guys Karen salmon gave you some real bonehead deals and you know, you're kind of waiting but you know, you're seeing you know, $3,000 arpu on on really great tier one customers, you know, but even wage
Restaurant magic, you know thousand 1500. You're still only looking at like $4,500 per box on kind of what I would call new ads, you know, can you can you comment, you know about your ability to penetrate, you know, that that you know, call it twenty Thirty forty thousand dollar number and you know, I guess my question is really like it kind of seems asinine that tow says that they can get that because it's much harder to cross so products to onesie twosies. I mean if you get you know use an example, let's say you get Dairy Queen and there's $53 units and they all get on the brink, you know, it's much easier for you to sell them restaurant magic or whatever loyalty or back office than it is to sell it to one unit. So I mean, can you talk about kind of the the strengths of this platform and your ability to capture that arpu and Tampa in a much more aggressive and efficient way than kind of your peers and and how you think about the Cadence of that because toast basically said in their thing that they're going to get to 16,000 of arpu Nam Ki
payments by 2024
And I'm like, it doesn't make sense to me. I mean, I you guys can do it, but I'm just kind of curious how you think about all that.
Yes, I think the Tam let me take this way. The Tampa restaurants is is is whatever it is. Today is going to be a fraction. What is in the future? I don't think if you ask any person in a restaurant business if they expected to have as much software if they have to do that, they would have ever dreamed and I think if we just ask the same to the restaurants in five years, that's the same question. I think they began to be shocked. The reason why I'm here is my our team is here is that we see that change where software is eating this industry life and in a good way the idea that you might need computer vision and Robotics delivery management artificial intelligence. Is she learning all these things are just now hitting the restaurant industry. And so whatever that Tim is when it's twenty thousand or ten thousand. It's changing tremendously. That's what we see this great opportunity because the point-of-sale system is the foundational platform that much of this comes off of the idea that just in the 11700 is stores that we had at the end of two for you know takes on average half a billion things for a p I think stress is just how important that product is as again the foundation of that of that platform. So I expect us to rapidly grow into that that Tam both through new products and again as we yep,
Some of your price but from the new product and acquisition we see it. I think in more fun. I think the industry sees it. I think these single product companies are coming back and realizing that their their their their path to success is by partner or being sold to a company like car as opposed to going at it on their own because it is just doesn't make sense. If you're at restaurant operator to manage 15 or 20 or 10 products per store that is just asking for money. And so I think that our position there is is incredibly strong and whatever I tell you today, I think it's going to be a dramatic understatement of where it will go in the future.
Let me look if I look at Oracle or salesforce.com or the one that I like is Market access which does fixed income pricing. I mean, you've seen a number of what I would call a vertical SAS companies cross-sell successfully. So I mean look, obviously the Playbook is there I mean look Lightspeed does a deal any any every five minutes and I don't know whether they're good or not. Obviously. It's s m b and you know, I I think that the term rates much High much higher, but I mean look, you know, I see that toast is you know talking about going public at twenty billion Lightspeed is trading at like 30 plus times Revenue. I mean, you know, uh, you guys basically have I mean if I can just kind of go backwards on that you guys basically did 1500 solid bookings. You've got a backlog of 2500 that bank is going to get work down, you know as as stuff opens up, which it will you know, it looks like you guys are probably on Pace this year, you know in brink at least to get the two thousand bookings or installs a quarter dead.
You know, so I just kind of do back-of-the-envelope math, you know, you know in conjunction with the wind down of the backlog and getting kind of two thousand. I mean if you if you do, you know, call it 8,000 install this year at 3,000 that's 25 million, you know, you're talking about fifty million fifty million bring plus, you know call it ten twelve million wherever restaurant magic. I mean you're looking at something that should be $60 a month not including acquisition. If I put a 30 multiple on that that's 224 not including the hardware business which is making money and government. So the market is still kind of saying you're a loser. I mean I I guess my question to you is like what do you think it's going to take to let people know that you're the winner here that you're going to be the one that is going to basically become the vertical bass player because I mean Lightspeed trades a double the multiple and it's it's an inferior business and they don't have the opportunity. I mean not a toast or Lightspeed has the opportunity to cross that sell through these deep networks. So like arguably we should be, you know trading at a much higher wage.
We'll give it our ability to up-sell and cross-sell so.
I just I'm trying to figure out what I'm missing and what how your service let me I think listen, I think our execution is catching up tremendously right again, I again I wouldn't have dreamed that we've had this type of bookings of backlogged. It's truly is incredible and I've never been more excited about you know, I'm always, you know, careful not to use hyperbole but to have 2,500 stores already signed going into a year is is it's hard for us up this year. So I just think it's continuing execution is really what delivers that and as we sort of set in our script and we've always said, you know, the the platform that we're building has tremendous value to our customers and and that's where I think every investment starts which is actually delivering value we are and I think we'll add more value than anyone else that we acquire and build new products. So I think it's executing on that plan like we've been doing and and continue to age and again as a pandemic rolls off, you know, very much changes Our Lives to you know, this, you know a real acceleration in in Revenue growth. So I think it's depend em because of interesting in the sense that we're dead.
I think proven that we are unique product in this market. We proven that we've got sort of dramatic event against our competitors. And now we've got this unique ability that as academic-wise down. We get the benefit of a tremendous amount of money tell when the revenue growth because we've already signed all these stores. So I think we get hate to say The Best of Both Worlds with that opportunity and we've got a couple more questions. I have I have one last question. I have one last question. I have one last question. If I take a step back and I look at you guys with all these these monster chains, right? Is it unreasonable to think that several years out? You know, you have a million restaurants United States and obviously a lot of these things are Global. I mean if I take a step back and say, you know several years out could this be a hundred thousand eight hundred thousand dollar unit restaurant, you know deployment in 48,000 including payments. I mean that's for billing and Sass, you know at a at a, you know, 20-30 multiple. You're talking about a hundred billion dollar company. So our our our guitar is to be the largest company. Yep.
Straight or just the technology company by 2030 and within five years, you know, I think will be uh, you know tremendously on the way they're they're already. I think we're going to hopefully be targets to get the numbers you talk about are very reasonable. There are a million rest of the United States seven and a half million globally that use point-of-sale system and we are building for that. I think we we think this is Sam is enormous. And and again, I think the more important part of it is yes that that song volume count is high which is the number of restaurants but it's the the arpu side that I think is is is growing at a rate that the world under appreciates. Just how much software is being bought by restaurants. And how much of that is dependent upon the point-of-sale system which is sort of our home or wedge in there. So I do believe that it's basically like rent right. I mean if I think about it by my grandfather was in the steel service at her business and he said look you have a few costs right? You got labor and you've got rental got costs of goods. So, you know what your cost of goods are that's your R&D and your software development cost right? You have your labor cost right? And then you have your rent right now, if you're if you're you know, if you think about a a restaurant in New Jersey
Whether it goes kitchen or a virtual kitchen, I mean look, you know, you're not going to be on 5th Avenue anymore. So, you know for all we know all these restaurants are going to be in these tin sheds in the middle of freaking nowhere, but at the end of the day, you know, I could have your software and that can eliminate the number of amount of Labor that I need to do online ordering and and this and that. I mean, why can't I mean the math I'm doing is you have two million dollar restaurants Chrome inflation. You have 2% of sales has 40,000.
Dollars, you know that doesn't seem unreasonable and that's not including payment. So like, you know, there's so much economic ways to a restaurant. I mean, why is this just like rent? I mean, I just the math makes sense to me and it doesn't make sense to me in the context of toast and Lightspeed because they're going after restaurants that are doing five hundred or seven hundred thousand and they can't be crossed sold into so when I look at our store base and I look at you know restaurant dog million and growing and you know the ability to cross all I mean like to me it's like we're going to we're going to do it. So I just I don't know it's silly to me that the market is gravitating to these these SMB office lower quality higher turn this out of it and we we do got to move to the last caller Before Time expires, but I'd say we did the tamils enormous. I think all of these companies are all fantastic. They're all going to grow at incredible rates. I've always thought we could be a really average management team will still have tremendous Revenue growth and if we're a great team will have well above industry growth, you know, we're riding a wave and we happen to be lucky to be the beneficiary. We're not sort of you know, there's no way Jose.
And that we're actually that great. This is just it's like they're Trend that's going to continue for a long long time. I think that's what you're touching on and I'm going to pause you when you go to the next call or just for the function of time.
Thank you. Our next question comes from Amman Mahal investor has open.
Hi guys, just have a few questions. The first one was just the you know, you talked about the acceleration this year from the booking backlog the 400 clothes stores that will reopen. I'm just wondering if I have the existing 11700 cycle and bring how many of those are kind of under earnings something of got a partially Limited hours partially open store or is there like a variable element to the brink ARR that you'll also see a benefit to them as as some of these stores were to come and normal operating hours.
So it's at the moment. There's no variable element to it. So if the store is open in running we're billing them and we've you know for stores that are down for your time. We we don't build them and so we take a conservative view on that off. So over time though, there will be a variable element as payment becomes a bigger part of our base, which is transaction-based as opposed to you know, the lights being on so at the moment you don't have variability from stores in partially opened its But there again, there is Tailwinds that these stores come back online. We start billing them again, and you know, we'll start to see that I think again as the pandemic winds down. We'll see some nice pull through there.
I mean you look at that installed base. Where do you see kind of most and look at the history? Where have you seen, most an additional product on a purchase is coming from the install base today, boss the main upsell you'll sort of generating right now. Sure so apar we've never up sold the product. So it's historically been a single product which is bring point-of-sales. Now, they've been small Mom. I don't like they were sort of bundled to break again. This is going back a decade, you know some in in inner a loyalty solution in Grand Touring solution, but for most of our customers a buy point of sale and then they use our API to buying a product whether it be online ordering or a delivery or loyalty or something else at all sort of plugs into that point-of-sale system. We now are starting to just begin that up some ocean with with our back office product and our payment products this quarter and I think you'll see us do more the the underlying Trend underneath this though is very positive which is our restaurant customers are not looking to manage 50 different vendors first, or they sort of want this platform impact both of them.
Build on but both of us just to simplify their lives and that's where I think that happens. So historically we don't have data. It's it's never you know, as I say, you know gross and net retention the same we just have it cuz there's never been an upsell and I think that is a statement here, which is the last caller The Tam is is just getting tapped into and I guess maybe the form up to the solution the questions previously on on the Team One customer could you know just talking about more Iraq and the same side?
To get some of those guys on and also how their demands and what they would need how difference from kind of tier-two and tier-three customers that you've been trying to get more more edgy on doing sure so often do you want customers are generally sort of year long sales cycle to win the corporate mandate. Now that that has, you know changed during the pandemic where we've had some some real short in sales Cycles which will talk about a quarter but historically around a year sales cycle and then subsequent to that you quickly roll out the corporate stores and then they mentioned if it's a multi thousand unit chains. It'll be a two to three year process to convert those stores onto onto Brink. So that's the only how you look at it in the mid-market. It's it's it's it's, you know, three to six months. It's a very different program where it's generally mostly corporate-owned. I can sign and turn the stores on very very quickly which is where we've seen a lot of the the growth as I mentioned in Q4 and and then the very down Market where we sell through resellers call it changed or less than fifty stores, you know. Yep.
It's sort of a couple of months. They'll cycle. We have a lot less visibility down there because we're not talking the customer directly and that is that is also the only part of our Market that really has turned as I mentioned. We've never really lost a large chain since June prince prince existed and I and I think against the durability business but also legally upsell because they must like the product if they if it never shut it off.
And then maybe just doing gross margins of coming in service revenues are going to consolidate the line to call in the mid thirties. Now the software imagine it would be hard enough. But can you just give me a sense of how we should think about are trending down for this?
Yeah, absolutely. So in our service line, we combined our software related businesses and then our service businesses, which are anything from field service to warranty Advance exchange type of repair work with that margins over time will expand we the software business is much higher margin than our traditional service business and over time. We'll see a nice growth in that business and I think over time we'll look to sort of Give em a lot more, uh, uh break out of that business line that you can sort of Follow that that that margin growth. So I think you'll see really nice margin growth in that business historically because again, the mix shift is moving much to the higher-margin business office non-software side of business should stay consistent should be nice margin as it's been for, you know, twenty thirty years, but the growth will really be coming from the software side.
Can you give me a rough split between the gross margin of software? This is gross margin few of them wants to get a sense of possibility. Yeah, so we historically have it took a lot more busy here, but we haven't broke it up. I would say that our software businesses will will be very much like other software products that sell to the same a CV levels that we do we we should be seventy 80% gross margin and time product. We aren't there today, uh, primarily as we've talked about the past the business is run incredibly inefficiently and we we sort of got to spend but we see a really nice trajectory in in gross margin in the next couple of years and I would expect us to be in that range over time. I don't expect us to not be in that range as we I don't see us being any different than their software product sales at the price point that we sell to and soul that's already happening and and again the new products we built and you probably we've acquired have all come in that sort of 78% gross margin range. We should be no different on the excusing on the non software side of our services Revenue dead.
You know, you're in the thirties of gross margin.
Um, and that is somewhat volume dependent. So, uh as we grow Brink the that business line sells more hardware store more services more are familiar with that name and that you know, and I think it's very traditional to other sort of Hardware businesses that package software installation implementation is not a business that we make a ton of money in on the gross margin level, but warranty advances change those field service is active or make nice margins and so as we grow I think that business line will set that part of the more the line will stay relatively flat as well as slow you'll see also increased margin there because you're doing less implementations where the gross margins are relatively low-wage.
Yeah, I think it was great. If you could separate all the software to get the last question for me just so I'm coming completely off when you're looking to get in customers has coded actually kind of helped maybe drive some of those sort of lagging competitors. We could products actually raise their game and kind of you know, ads online ordering collection to their product to be seen sort of them raising their game any in any way over the last 6 months.
You know I'd say this is Augustine. I think the the younger more Dynamic companies that reacted I think well during the pandemic focused on the down Market part of the business with those that were trying to come up into our our part of the world, which is the Enterprise side. I think we transcend said hey, where are we going to be great. Let's focus on the market. We're great, which is that sort of SMB customer base. It's never moved to chunk of competition from from our world today on the traditional competitors the older companies. I don't I don't think we've seen a dramatic change. I think there's no doubt that everybody reacted to help their customer base. Nobody was home, you know trying to hurt their customers, but I think it's very hard to you know, the innovator's Dilemma. How do you turn a product line that's made a ton of money for you sit down kind of cash and turn that into a dramatic reinvestment vehicle. You know, I think it's tough. And so I think there's they're structurally challenged to make such a drastic change their business. And so and again, I think our results are showing I don't think we would have had the this dramatic growth in bookings. We see wow.
Couple of quarters if the competitive response was, you know, very strong.
I guess go ahead.
Thank you. I'm showing no further questions at this time. I'd like to turn the call back over to just the thing for any closing remark.
Thanks everybody for joining. Look forward to welcoming you on future calls.
Thank you. Ladies and Dumber. This does conclude today's conference. Thank you all for participating. You may all disconnect. Have a great day.
Todd