PAR Technology Corporation (PAR) Earnings Call Transcript & Summary

Thank you for standing by, and welcome to the PAR Technology call on the acquisition of Punchh. [Operator Instructions]. Please be advised that today's call is being recorded. [Operator Instructions]. I would now like to hand the call over to Chris Byrnes, Vice President, Business Development. Please go ahead.

Thanks, Michelle, and good morning to everyone, and thank you for joining us. Earlier today, PAR announced its acquisition of Punchh. And to discuss the announcement, I'm joined on the call today by Savneet Singh, CEO of PAR Technology; and Bryan Menar, PAR's CFO. A press release and supplemental information of the transaction are available on the Investor Relations section of our website at www.partech.com. Participants on the webcast should be able to access the information directly once logging on. As a reminder, this conference call is being webcast live, and a recording will be available via telephone playback. And also archived in the Investors section of our website. Today's call may include forward-looking statements regarding our future business performance. These statements include risks and uncertainties that could cause our actual results to differ materially from the statements made on this call. Please refer to our press release today and our recent filings with the SEC for information on specific risk factors. And with that, I'll now turn the call over to Savneet Singh for his comments on our acquisition of Punchh. Savneet?

Thanks, Chris, and good morning, everyone, and thanks for joining us today. I'm excited to announce that PAR and Punchh have signed a definitive agreement under which PAR has acquired Punchh for around $500 million paid in cash and shares. Punchh is a market-leading customer engagement platform that provides cutting-edge software applications, including loyalty, promotional campaigns and marketing artificial intelligence for restaurants in the retail industry. Punchh powers mobile apps and loyalty programs for many of our largest customers. In addition to many customers we hope to win in the coming years. Combining Punchh's loyalty data with our transaction and back office data gives par almost complete data across the entire restaurant from guests to fulfillment. Punchh is one of the best businesses and products that have come across, and I'm beyond excited to welcome them to our team. As we have previously communicated, restaurants are seeking a unified commerce cloud platform. The addition of Punchh to our platform positions our customers to dramatically improve their operations and customer retention rates as they embrace the new digital economy and the challenges from the pandemic. Adding Punchh to the PAR platform is a big deal. Punchh is 1 of the highest quality assets in restaurant technology and now gives PAR the scale to fulfill our very aggressive ambitions. If we flip to the slide deck, you'll see on Slide 3, the details around the transaction. Punchh has more than 200 brand customers, 45,000 customer locations and currently has $53 million in contracted ARR and 115% net retention. Punchh ended 2020 with approximately $32 million in ARR that has been growing at a CAGR of 54% since 2017, despite the historic challenges of the pandemic for the restaurants -- for its restaurants in 2020. Punchh also has $21 million in contracted backlog. This slide also highlights the terms of the transaction. I am personally excited and pleased to have Ron Shaich and Keith Pascal participating in the deal. Ron's experience in history as the founder of Panera Bread make him invaluable resource to not only par, but to me personally as we continue to execute our strategy to become the world's largest provider of technology to restaurants. To give you additional detail on the acquisition, Punch's capability builds and extends our platform. Combining Brink and Punchh brings together 2 category leaders in point-of-sale and loyalty. Punchh's product development and engineering capabilities enhances our tech team, and equally important, their expertise in artificial intelligence will help build the connectivity across our platform. And certainly, worth noting is that the ARR of our combined businesses nearly doubles with the addition of Punchh. Punchh has an impressive customer base with an estimated 35 of the top 100 enterprise restaurant chains, and there is some overlap with our great customers. If we flip to the next slide. You'll begin to see the motivation around the deal and why it's so advantageous to have the unified cloud platform. The Punchh acquisition and the integrated platform reduces that complexity due to the broadening of our offerings. Flipping to the next slide. Slide 7, excuse me, demonstrates the transition restaurants are experiencing in regards to now having direct customer relationships and highly integrated solutions. As you'll see in the following slides, it's it is incredibly important to note is that we are now building the unified commerce platform. The completion of this acquisition dramatically accelerates our path to becoming end-to-end platform. Slide 9 illustrates the depth of the par offering with now adding Punchh that includes the ability to combine capabilities into 1 unified cloud platform while limiting the need for cumbersome best-of-breed offerings. This platform will allow our customers to take back their guest relationship. Slide 10 is our tagline. And with this acquisition, we dramatically increased our ability to deliver on those products. The next slide highlights the key to the transaction and why we are so excited to get this started. First, Punchh extends PAR's cloud -- PAR extends cloud for enterprise restaurants. Second, our combined companies further expand the industry's largest integration ecosystem. Third, the deal creates a unique opportunity to improve our value within our shared and target customers. Fourth, we significantly even our technology development bench and innovation horsepower. And fifth, we transformed Par's financial profile by nearly doubling our ARR. It's a big step in growing our SaaS subscription and higher-margin revenues as we show on the final slide. Let me close by saying we have deep respect and a duration for the Punchh team. They are pioneers in building out the leading restaurant loyalty solutions and are true experts in the industry. Their focus is on collaboration and strong execution, all of which are a great fit with Par's culture. At PAR, we believe that the ability to attract and retain talent will be our lasting moat. Attracting the Punchh team is a testament to that belief. I'm excited to join forces with them as we address the enormous opportunity in front of par. I know I speak for all of our company in welcoming the Punchh team into part. With that, I'll now turn it back to the operator for questions, and then we'll conclude with some final remarks.

[Operator Instructions]. Our first question comes from Stephen Sheldon with William Blair.

Congrats on the deal. Pretty exciting. How much -- I guess, just 1 thing I segment, you kind of talked a little bit about there being some overlap in the customer base. I guess, how much overlap is there between the customer bases between Brink, Restaurant Magic and Punchh. And I guess just ask another way, what does the cross-selling opportunity here look like?

Yes. It's quite significant. So from a I would say from a site count perspective, the Brink base is probably, I'd say, 30%, 30% to 40% penetrated with Punchh, so a lot of additional upsell. But what I think is equally interesting is that Punchh has landed an estimated 35 of the top 100 chains in the country. And so they're an amazing opportunity for us to expand that flag beyond Punchh in to point of sale, back office and so on and so forth. So it's a pretty significant cross-sell opportunity. And I'd argue, there's probably more opportunity for us to -- for Punchh to pull brink upward as much as it is for Brink to pull Punchh's into our customer base.

Got it. And then I guess just on integration plans. I know they've been a long time partner, which should potentially make any integration process easier. But how are you thinking about the complexity and the benefits of integrating Punchh's platform with Brink and Restaurant Magic?

So at the foundation, I think there's the operating side and there is business side. On the operating side, we intend to run Punchh as a business unit. I think there's an amazing functional sense there. Punchh is incredibly heavy on the product and engineering side. I think, as I said, their team was, honestly, the best I've seen in the industry since I've been here, and we don't want to mess with that. But the products have to speak, the product strategy has to be connected, and that's where we're most excited. And so we'll absolutely be integrating the products because the entirety of the thesis behind us is building the platform. Restaurants really are struggling through this spaghetti of integration, the constant point-to-point solutions. It's really making the life hell. And as more software gets developed, it's going to get worse and worse. And so we'll absolutely connect the products, and I think we'll leverage a lot of the Punchh's team expertise in artificial intelligence, data, data migration to help lead that. So the products will become integrated. It will become 1 platform, and that platform will be PAR.

Is there any time line for doing that? I know with Restaurant Magic when that was acquired, there was no earn out payments. So it limited your ability to do it quickly. Is there anything here? Or would this integration process maybe start quickly?

No limitations at all. So we'll start product strategy integration next week. And then we'll work on the organization. As we get to know each other and figure out who fits best where. I would say the most exciting part of the transaction besides the Punchh product and honestly, buying an asset that's as high-quality as our existing business, is that the team at Punchh is incredible. It is some of the best we've seen. And so a lot of it is sort of create from that cross pollination. But we'll do that organically. The product strategy side will start immediately.

Got it. And then just last one for me. I know Punchh integrates with a lot of different POS providers. Is there any risk you see that other POS providers try to limit integration with Punchh after this deal to potentially hurt the company's existing AR? Or I guess, how are you thinking about that dynamic?

I think it's a very, very, very low probability. I don't see a point-of-sale company convincing a large rest of enterprise, hey, we don't want you to lose loyalty provider that you've loaded your 10 million or 100 million guest records on because they've been -- they're owned by someone else. By the way, if they did that, I think it would highlight why they need to get a new point-of-sale provider. So I think it's unlikely. And I would say this somewhat carefully, but in the enterprise, there's no doubt that you have had -- we are probably the 2 leading cloud providers of the categories that we service. And so I think in many ways, the future looks incredibly light in sort of selling that story. And the customers that we've already signed, I don't expect it will be a problem. And I think it's going to be very hard for someone to argue, I want you to change your product because they're owned by somebody else.

Got it. Makes sense. Well congrats again. That seems like a very, very exciting deal.

Our next question comes from Mark Palmer with BTIG.

Yes, congratulations on the deal. Just wanted to delve into the overlap question a little bit more and the penetration question. You mentioned that Brink is that 30% to 40% penetrated with Punchh, Punchh is in 35 of the top 100 chains. As you're looking at that cross-pollination strategy, where are the points of interconnect do you see, in particular? And you have -- between the Brink software, on the 1 hand and Restaurant Magic on the other, where do you see the point of connectivity as it pertains to cross selling?

Yes. So let me first step back on the product side. So the key to all of this is a product. Us now having the guest information, combining with the transaction and then having the back office gives us complete information. It allows us to change the customer experience. Our vision and our dream is that you go into a restaurant 1 day and they say, wow, that was a different experience because technology added to that experience. It was truly not a wedge between my relationship to that brand. And when you have the entire sort of platform, if you will, you're able to actually create a different outcome for that customer. Because you can walk into that store, we know who you are. You never need to bring out your loyalty card, you never need to bring out your credit card. You don't need to tell them that you're vegan, or gluten free because all this is built for you. And it's that platform approach that I think our customers are adopting to and sort of this transition from I want the best-of-breed product for everything that I do into I want the platform because best-of-breed is starting to fail in the enterprise. And that's a lot of the pieces behind us. Specific to just cross-selling across our brands, I think it's relatively simple. When we plan to fly with Brink, we feel incredibly passionate that we should be able to pull on every product that we sell. And it's on that product thesis that I just mentioned, which is if you've got the best cloud point-of-sale system, you've got the best stock offices. And now you have the best loyalty solution. There really isn't a desire to try something else, particularly if those products speak to each other. Because the alternative is, "Hey, I'll pick someone else for loyalty. I'll take -- bring for point of sale, I'll pick someone else for back office". You actually add an incredible of risk to your restaurant because you need these systems to talk to each other, that weren't built to talk to each other. They're very point-to-point every time 1 system does an update another system breaks down. And so we're very much sort of answering that need. From a math perspective, it's exactly what you said. So we are -- Brink at the end of Q4 was in around 12,000 stores. I guess a 30% to 40% of those already are Punchh customers, and we think we should be able to help them penetrate a large portion of that. And then on the Punchh side, from a logo perspective, I'd say we're actually a relatively small portion of their logos today. And so I think there's a really strong opportunity for us to sort of use them as a wedge into some of these chains. I should also say that one of the most interesting about Punchh is that they are in actually many of the large logos that we are not in. And so it's a fantastic way for us to elevate actually the Brink conversations that next level of restaurants. And so that's kind of how we look at it, but kind of at the foundation level, it is a product that allows us to sort of now go to restaurant and give you a platform as opposed to a point solution.

Our next question comes from George Sutton with Craig-Hallum.

Savneet, wonderful deal, congratulations. So one of the things that's compelling in this conversation, in my view, is every time we do a channel check call with anybody in the space, they have talked to you. So the fact that this is one of the best businesses that you've come across as an impressive statement. You, I look at as an extremely knowledgeable buyer, having had integrations and having worked with specific brands using this Punchh offering. Can you talk to that specifically? And by our view, like a Fazoli or a Blaze, looks like a common customer where you may have used this. What does that revenue opportunity look like relative to your point-of-sale only offering?

Yes. It's a great point. So Punchh has been a long time partner. And so we sort of have wonderful data to understand, it's actually a good product, right? Does it actually work? And as we sort of mentioned, Punchh has incredibly high customer satisfaction scores, NPS scores, we know from our customers how much they love Punchh. And by the way, we also see how much they win because we have to integrate to them every time they win. And so I think we've just been so impressed by how fast they've grown. But also how to really capture that same enterprise market that we've captured. So they've done a great job, and we had great information. From the math perspective you're talking about, the average Punchh customer today, I'd say they sell a few different modules, but let's say, on average, it's about $75 a month. And I think there's immense opportunity for that to expand. And it will expand for a few reasons. The first is that generally, when someone signs up with Punchh, they're looking at offers or promotions. It's a solution to sort of manage that across your restaurants. And then they grow into loyalty. And so you go from $75 to, call it, $110 and that loyalty product is so valuable because it's got all of that customer data, every habit. And then from there, you have the ability to then go upsell the artificial intelligence module, which is called Merlin. And from there, we think that's where we think there's an incredible opportunity to expand the TAM. Because there's not a restaurant, really talking about a business in the world that's not thinking, hey, how do I use artificial intelligence to increase the LTV of George, my customer? And so that early on, that dynamic was, well, let me just send George a coupon to buy coffee at an off hour like 3:00 p.m., and he'll come in. But now it's turning into, well, if I sent, George, a coupon at 3:00 p.m., I'm going to cannibalize the sale that I would have had at 4:00 p.m. or 5:00 p.m. when he normally would've come in. And so you'll take that customer data, then tie it back to the register, tie back to our payments product, tie back to our kitchen, and you can see how we actually build really unique product for that in restaurant. And so I think there's an opportunity to increase just from our, call it, $175 a month at Brink today plus the Punchh module. But there's a lot of additional Punchh modules to come that I think we'll be excited for. And I'd say you could -- I'm pretty sure you get into more sort of customer-facing products that we aren't in today.

Got you. And full disclosure, I already eat too much. I don't need more food offers. So as I look broadly at this loyalty and promotional market, you have other integrations, you have other relationships. Do you continue to expand with others in this space? Or does this become a bit of a -- does this become a hub and then there are other spokes you would work with? Just want to make sure I understood that aspect.

Of course, we will never ever change from the idea of being open. And either will Punchh. Part of the foundation of Brink's growth and Punchh's growth has been that we are fast and we are open. We don't want to become sort of the restaurant technology vendors of the path that are closed systems that limit your innovative capability, we never want to do that. So we will absolutely continue to be support of our existing partners and hopefully had more. And I think they sort of understand the logic of what we're doing, which is we're very much solving that customer pain point, which is, I love that you're open. I love that I can build. But I don't want to build everything. I don't want to have 20 different products. And so we will commit the staying open and Punchh will as well.

Perfect. Well, I'd like to congratulate the Punchh team for turning a typo into $500 million.

Our next question comes from Samad Samana with Jefferies.

It's actually Ryan Bressner on for Samad. Just a couple, if I may. So on the ARPU side, what is the monthly and annual ARPU upside that this could provide for PAR? And I see that in your prior slide decks, you've indicated that loyalty can provide up $100 a month in ARPU upside, which should annualize to $1,200 a year. Does that still compare?

Yes. So we just talked about it. So the sort of first module within Punchh is generally about $75 a month. The second 1 ends up being around $50 a month. And then if you're able to upsell artificial intelligence, it's another sort of $50 a month. I would say, historically, that's where Punchh has been. And I think what we'll find going forward is you'll see opportunities for us to not only increase that, but also find the right market fit. Punchh does have 1 legacy deal that's at a lower price. But as we lost that, I think you'll see us sort of be in that range that we can serve historically through in our presentation.

Got it. One more. I see that Punchh has expanded into other convenience stores and broader retail, how much of their exposure comes from these categories? And how would this fit into your broader market strategy?

The vast majority is in restaurants today, but they have been pulled into retail, if you will. And I think it's an interesting opportunity for us as well. Brink itself as and pulled into convenience to a degree. But today, the focus on restaurants, we want to make sure we knock that get it great. And we'll follow punches lead as the product expands. I think it just speaks to honestly, the quality of the product that something that was built for restaurants is being pulled into some of the largest retailers now. So it's an interesting expansion for us, but the vast majority is today from restaurants.

[Operator Instructions]. Our next question comes from Adam Wyden with ADW Capital.

Savneet, what a big morning for you and for me, I mean, this is amazing. I think many of us have been waiting a long time to see kind of the big deal, given the capital that was raised. And obviously, personally, I'm super excited because to me that it's kind of the catalytic moment that we've successfully gone from point of defense to point of offense. I know Restaurant Magic was a nice transaction. But I mean, this to me is really transformational and puts the company in the leagues of Coast and Olo and all those. So I guess, personally, I think you hopefully join the Board of [indiscernible] as well. It's super exciting. So I'm super happy to be partnered with you. And I think that this company, as I've said in the past, has the framework to be a salesforce.com or a $100-plus billion company and all the rest. But I just want to go over some basic stuff here. So if I just do the math backwards, there's a little bit of alphabet suit because of all these different units. But on the presentation, you say 45,000 units. Now I assume like Brink, what do you call, Punchh is not penetrated within all the existing banners. So can you estimate how many units -- like I know you gave the figure like...

So this is actually -- yes. it's actually one of the most exciting things about the Punchh business. So the majority of Punchh customers actually are true enterprise sales. So one of the disadvantages of the Brink business, but is that it takes us time to roll out large chains. Contractual doesn't have to suffer from that nearly as much as we do. So when they sign a large chain, they can actually sign and roll out the entire concept within 6 months because it's a corporate sales. And so that's the beauty of this model, and that's why there's the pull side of it, it's so powerful. Now there are some customers, and so there are definitely thousands of stores that are still to be rolled out in Punchh. The best way to look at it from the Punchh perspective is actually that contracted ARR number. Those are for sites that they are contracted in total versus the live air number 32. So the contract there, our number is $53 million. At the end of Q4 and the live was 32. And so you can see there's a $21 million backlog there. So it's -- looking at it from an ARR metric here as opposed to sites metric or user Brink.

Is that 90 days like Brink? Or what's the delta between live and contracted?

So we're going to feed that as we go. It's been -- it's changed a lot over the -- particularly because of the pandemic, a very similar experience that we have. But I think historically, their goal is to get customers live within 6 months, and maybe it's 9 m because the pandemic, but that's generally what we look at. And so you can see that while the business has grown so nicely is you have tremendous visibility when you sign a customer. And again, that's how we love this business so much. And that a lot of what we have to do is just hand-to-hand combat, and we've gotten really good hand-to-hand combat, as you've seen from the bookings and the backlog at Brink. We don't -- a lot of what we have to do -- we don't have to do that at Punchh. And that's, again, from the beauty of this business is that it's true enterprise software where you have amazing visibility.

Yes, it's contracted with the corporate. So unlike what point-of-sale with Brink, where you got to give incentive for the guys to go and do it, and the corporate has to give incentives, it's contracted. So what happens if a franchisee doesn't want to take it? Do they kick them out? Or how -- I mean how do they actually get franchise organizations to basically go through the entire system? I'm just curious how they're able to do it. Because if we can do it...

Yes. So we've gone internally better at this. I said Brink, and I think in our next call, we'll talk more about how we've got really good at that. But in short, it's because it's a -- when you're adopting Punchh, it's a big product, similar to Brink. But a lot of the value that comes out of it is both at the corporate and at the franchisee. So if you're a franchisee and you choose not to pay for this through your marketing funds and the relationship you have that change. You may not get access to the mobile app or loyalty app, right? And so in the space that we play, which is large restaurants, it's very hard to have franchisees not participate in a loyalty program, right? Is your local big chains were not -- doesn't take mobile apps or mobile orders. They're not going to survive. And so they have the ability to push that down. Whereas on point of sale, it is still more of a convincing product, albeit one that's turning more and more into a mandate.

All right. So if I work backwards, the 45,000 active restaurant locations, that's different than contracted at the end of 2020. Now obviously, you have some net dollar retention, but I mean the math I was doing is that 45,000 locations, if everybody signed up for everything, it's a $95 million ARR business. Now presumably, contracted is different than active as well. But if I were just to take a step back, right? And I think the major bear case on par has been while they can't really get many locations. But then when I think about it, I say, okay, well, we've got 12,000 locations. You've got the contracted backlog, plus you have the penetration within the brands that you're not there. I don't know what that number is, I'm sure you can tell me, it's 20,000, 24,000. You've now got Restaurant Magic, which, from what we understand, is kind of piloting with some really big names. And then you've now got, whatever, the 45,000 active punches, but maybe that's really 60,000 contracted if I were to kind of alphabet soup and say, okay, what is the total addressable market per brand that you're penetrated in each one. So like what I would say is I say, look, you're going to have -- some of them, you're going to have 1 of two. But it looks like Schlotzsky's and some of these ones that are in all 3 are pretty small. So when I think about it, I say, okay, well, getting all 3 in Yum! brands is brick and incredible, right? And what does that do to Brink? So if I were to say to myself, okay, the total addressable market of brands across all 3 platforms is what, 100, 1,000? How should I think about that? Because I think really what people are missing in this investment, I've said for a long time is, if we say that the stack is $50,000, per restaurant, QSR restaurant, including payments, not including payments and you say, well, there's 1 million restaurants. And we have 100,000, and we can penetrate over time, 50,000, right? I mean, you can do the math, right? $5 billion of ARR at a 50% EBIT margin, that's a $2.5 billion EBIT business at 20x it's a $50 billion business. Now we may have 100,000 restaurants under our belt now, and now we just got to develop and buy the modules. I mean, can you help me kind of unpack that?

Yes. And so let's look at it this way. We just lose that Brink, we're in 12,000 stores, and we could double our revenues without signing other concept, right? So there's a way over double. And so there's a large backlog of stores to be rolled out within our bring platform. And then you add that to the 40-ish thousand stores at Punchh. And so you're over -- well over 50,000 total restaurants. You take that number, and you multiply it by what you think our current product suite are -- product suite is. And so you've got Brink, which, today, the average customer is about $170, $75 a month to $2,100 a year. You add Punchh, which again, is, call it, $75 growing very aggressively as we lap our legacy customer. And you've got Restaurant Magic, which is about $120 a month. And then obviously, our payments offering. And so I don't want to use hyperbole, but obviously, the TAM is enormous and is significant. And part of the reason why this acquisition is so important to us is, if you go in with the platform, you actually increase the TAM. Because you're now going with an offering that can actually create more product and value as opposed to, hey, I'm a point-of-sale company, take my payment, now you're this platform that you can actually build your product off of. And so the TAM -- I don't -- I'm not worried about the TAM in any way because the TAM actually gets larger when you're the platform because more it can be built. And you're again solving this such a payable product. So from that perspective, your math is probably right. From a store count perspective, it's probably actually underestimated. But that's the way that I look at it, which is that we are sort of expanding TAM by building this platform.

Our next question comes from Anja Soderstrom with Sidoti.

Congratulations on what looks to be a great deal. And good questions asked already. I just curious, you mentioned you had a very strong ARR growth in 2020 despite the COVID, what kind of headwinds did the Punchh experience in terms of COVID? And how do you see that play out this year?

Yes. So similar to what we experienced, actually a little more painful for the Punchh team. I think they were effectively down for 2 to 3 months, where we had sort of that 6-week of pain, and then we saw that rapid rebound. So the second half of their year, they were sort of back to their normal growth rates. And so it was 2 to 3 months of pain and others it's been back to their normal growth rates. And obviously, we can't talk about Q1, but I think this year will continue to be a really nice growth year for them. Again, very similar to Brink in is that there's a lot of contracted revenue that needs to get rolled out.

So the growth rate for them was a lot stronger in the second half.

That's right. So being. That's exactly right. Very strong growth in the second half of the year. Yes.

There are no further questions. I'd like to turn the call back over to Savneet Singh for the closing remarks.

Thank you, everyone, for joining, and we appreciate your time and your patience today. As I mentioned, we couldn't be more excited about the business that we're acquiring in business that we're now part of Punchh to us is the best asset in this business. In many ways, we acquired an asset the size, scale, growth and retention and Brink for $500 million. I think we got a wonderful deal and a wonderful team with it. And so I'd love to leave you with just a few quick thoughts. And the first is that I think by the acquisition completion today, we really have become the enterprise platform. There isn't another player that is sort of the enterprise platform to run your restaurant. And so I'm incredibly excited because that platform, as I said, truly expands our TAM. The second point I'll leave you is that we have added an incredible amount of management horsepower to PAR. The Punchh team is world-class, both when it comes from product engineering, artificial intelligence, but also just to go-to-market capability in general marketing. I am -- every conversation I'm wowed in, and I can't believe, honestly, they're going to be part of the team that we get to build this ambitious future for. And then last, I'd say that we are in a unique time in restaurant history, where restaurants today are under intense pressure to not only grow but manage an infrastructure that they were fundamentally not built not ready to serve. And at that time, they need an ally to help them win that customer back from all the parties that are coming in and finding ways to disrupt that relationship create that wedge. And we truly believe that Punchh for us is honestly, the tipping point for us to become that Ally and become that partner in their new digital future, which hopefully involves in bringing back a lot of the relationships that they'd like go over the last couple of years. So with that, I'll close the call. Thank you again for joining. We'll post the slide deck on our website. And I look forward to speaking to all of you.

Ladies and gentlemen, this does conclude the conference. You may now disconnect. Everyone, have a great day.