PAR Technology Corp (PAR) 2018 Q2 法說會逐字稿

Good day, ladies and gentlemen, and welcome to the PAR Technology Fiscal Year 2018 Second Quarter Financial Results Conference Call. (Operator Instructions) As a reminder, this conference call is being recorded.

I would now like to introduce your host for today's call, Mr. Chris Byrnes, Vice President of Financial Relations. Sir, you may begin.

Thank you, Darinda, and good afternoon. I'd also like to welcome you today to the call for PAR's 2018 Second Quarter Financial Results Review. The complete disclosure of our results can be found in our press release issued today at 4 p.m. as well as in our related Form 8-K furnished to the SEC. To access the press release on the financial details, please see the Investor Relations and News section of our website at www.partech.com.

At this time, I'd like to take care of certain details in regards to the call. Participants on the call should be aware that we are recording the 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 a question, it will be included in both our live conference and any future use of the 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 this afternoon and in our annual and quarterly filings with the SEC.

Joining me on the call today is PAR's President and CEO, Dr. Donald Foley; Bryan Menar, PAR's Chief Financial Officer; and Karen Sammon, the company's Chief of Staff. I'd now like to turn the call over to Don for the formal remarks portion of the call, which will followed by general Q&A. Don?

Thank you, Chris. Good afternoon, thank each of you for joining us this afternoon. I would like to begin today by highlighting our financial results for the second quarter by providing an overview and update of our business. We'll then turn the call over to our CFO, Bryan, who'll take a closer look at our financials. We will conclude the call as usual by taking your questions.

Now to review the quarter. Second quarter revenues were $52.6 million, a decrease of 15.6% compared to the second quarter last year. Our year-over-year revenue performance was due to lower hardware and hardware-related service revenues from our traditional Tier 1 hardware-only customers in the Restaurant/Retail reporting segment. The company was able to partially offset these reductions with gross -- growth in SaaS revenues related to Brink and continued growth from our Government segment.

On a GAAP basis, we reported a net loss of $1.3 million and loss per share of $0.08 in the second quarter compared to net income of $2 million and $0.12 earnings per diluted share in Q2 2017. On a non-GAAP basis, we reported a net loss of $652,000 in the quarter and a loss per share of $0.04.

Now to review the quarter's business highlights. Starting with Brink, in the second quarter, we activated 1,365 new customer sites, a 160% increase from the second quarter last year, and the largest number of stores activated in any single quarter. The average monthly recurring revenue per site, exiting the quarter was $130.

At the end of Q2, we had over 6,400 restaurants, utilizing PAR's Brink solution, an increase of 94% from where we were at the same time last year.

New Brink bookings in the second quarter totaled 700 restaurants. While we anticipate a similar run rate for our bookings in Q3, as our Arby's corporate development successfully concluded in mid-June and as we enter the slower summer months, we expect to return to a more accelerated booking rate in the fourth quarter. With the successful implementation of Arby's corporate, PAR is the only cloud point-of-sale solution to be deployed in more than 1,000 stores for any single brand. And more notably, we have done it twice, both Arby's and Five Guys. This accomplishment establishes Brink as the leading solution for our multiunit -- for the multiunit segment of the restaurant market and validates that major chains are confidence -- confident in the advantages that cloud POS offers. 6,400 plus active Brink sites at the end of Q2 includes over 300 unique concepts, a testament to Brink's broad-market appeal.

Interest remains high in Brink. Our target market is multiunit, limited service restaurant chains, QSR and Fast Casual that operate more than 5 sites. The segment represents over 300,000 stores and 950 unique brands. Today, we are engaged in various stages with more than 23% of these sites.

We continue to accelerate our investment in the Brink solution both by adding features and functionality and by enhancing our underlying technology platform to meet growing demands of the market.

In late Q2, we announced the release of PAR Pay, the cloud-based payment solution that offers our Brink customers real-time transaction visibility, allowing anywhere-access to view transactions and settlement details, analyze trends, reconcile payments and manage charge-backs across all stores. Interest in PAR Pay is building and should contribute to increase our monthly recurring revenue.

PAR's reputation as an innovative leader in hardware and life-cycle services is recognized throughout the industry and creates opportunity for our software solutions. For example, our hardware platforms are being well received by our customers. Our hardware and services businesses are important components of our portfolio, and continue to be a positive contributor to our company's financial results.

Now turning toward PAR's food safety and digital task management solution, SureCheck. Last quarter, we announced 4 additional pilots based on our new SureCheck version 10.0. I am pleased to report that all 4 pilots are progressing quite well. Based upon this positive performance, we GA released SureCheck version 10.0.

Additionally, we are receiving interest in SureCheck for digital checklist and IoT from restaurant operators who are feeling the pressure from labor cost, decreased labor availability and increased store complexity. Managers require solutions that create operational efficiencies through automation. That is digitizing tasks, capturing data directly from IoT devices and seamlessly making that available to the enterprise.

Now to review our Government performance. I am again pleased to report a strong quarter as segment revenues grew 22% in the second quarter versus the prior year. Our Intel solution revenues grew 32% in the quarter, while the Mission systems business line grew by 13% in the second -- versus the second quarter 2017.

Contract margins remain strong at 11.7%. PAR Government closed Q2 2018 with a multiple year contract backlog of nearly $111 million. In summary, we have made progress in the key areas of our business regarding subscription software solutions. Revenues generated from our cloud solutions continue to grow, and as I mentioned, grew with 66% in Q2. The rollouts to our Tier 1 Brink customers continue, and this is the foundation of our future growth.

We are innovating in ways that truly matter for our customers. We are executing our strategy, leveraging our technology to disrupt the industry and positioning PAR for long-term success.

I would like to extend my thanks to our customers, our partners, our shareholders for their continued support and confidence in PAR. I especially want to thank our employees for the hard work and dedication, which is essential to creating value for all of our stakeholders.

Once again, thank you for participating in today's conference call. I will now turn our call over to Bryan for his more detailed review of our financials. Bryan?

Thank you, Don, and good afternoon, everyone. I would now like to take this opportunity to provide some additional details surrounding our second quarter results.

Product revenue for the quarter was $20.9 million, down $11.8 million, a 36.1% decrease compared to Q2 2017.

Our hardware sales in the Restaurant/Retail segment were down versus prior year as we lapped major hardware project installations to a large domestic customer in the second quarter 2017.

In addition, international revenue in the Restaurant/Retail segment was down compared to Q2 2017.

Q2 2018 results did include $2.6 million of hardware associated with deployments of Brink, up $0.3 million, a 13% increase versus Q2 2017.

Service revenue for the quarter was $13.9 million, down $1.1 million, a 7.3% decrease compared to Q2 2017. The decrease was driven by hardware-related services, down $2.1 million, offset by software-as-a-service revenue, up $1 million, a 66% increase compared to prior.

The increase in SaaS versus 2017, was driven by a 94% increase in the Brink installment base from June 30, 2017 to June 30, 2018. We exited the quarter with $9.8 million of Brink annual recurring revenue form SaaS contracts compared to $7.5 million as of December 2017.

Contract revenue from our Government business was $17.7 million, up $3.2 million, a 22% increase compared to Q2 2017. This increase was driven by a $2.2 million increase in our intelligence, surveillance and reconnaissance business line and a $1 million increase in our Mission systems business line. As Don mentioned, the contract backlog continues to be healthy, noting a total backlog of $111 million as of June 30, 2018.

In regards to margin performance for the quarter. Product margin for the quarter was 26.5% compared to 25.4% in Q2 2017, with favorable product mix, consisting of higher ratio of terminals sold in the Restaurant/Retail segment.

Service margin for the quarter was 26.8% compared to 30.8% in Q2 of 2017. The unfavorable year-over-year margin rates are due to increased investments in our call center to support growth in Brink installment; constraints on overhead absorption related to decline in hardware support services; partially offset by favorable product mix driven by growth in our SaaS revenue. Government contract margin for the quarter was 11.7% compared to 11.2%, in Q2 2017. The increase in margin is primarily due to favorable contract mix within the intelligence surveillance and reconnaissance partly offset by contract mix and Mission systems business line for the quarter.

Now to review operating expenses. GAAP SG&A was $9 million, up $0.1 million versus Q2 2017. The increase was primarily due to growth on a spending in sales, marketing and information systems to support growth in our Brink POS and SureCheck solutions, offset by reductions in international operations, costs associated with our investigation conduct at our China and Singapore offices and reductions in other domestic, general and administrative costs. Non-GAAP SG&A, was $8.3 million, up $0.1 million versus Q2 2017. Non-GAAP SG&A adjustments for Q1 2018 included $0.3 million related to the investigation of conduct at our China and Singapore offices; $0.3 million for equity-based compensation and $0.1 million for severance costs. Research and development expenses were $3.2 million, up $0.5 million versus Q2 2017, driven by an increase in investment to support the current and future growth in Brink.

Now to provide information on the company's cash flow and balance sheet position. For the 6 months ended June 30, 2018, cash provided by operations was $0.6 million, primarily driven by a decrease in net working capital requirements, partially offset by net operating loss. Cash used in investing activities was $3.8 million for the 6 months ended June 30, 2018, versus cash used of $5.6 million for the 6 months ended June 30, 2017.

In the 3 months ended June 30, 2018, we capitalized $2.1 million of costs associated with investments in our Restaurant/Retail segment's software platforms in line with the same period in 2017.

Non-software CapEx was $1.7 million for the 6 months ended June 30, 2018, down $1.8 million versus the same period in 2017. The decrease was primarily, related to a decrease in capitalized costs associated with the implementation of our enterprise resource planning system and information systems infrastructure versus the same period in 2017.

Cash provided by financing activities was $5.5 million for the 6 months ended June 30, 2018, with $4.9 million of borrowings from the line of credit and $0.7 million of proceeds from exercised employee stock options.

As of June 30, 2018, the inventory balance was $26.8 million, an increase of $5 million from December 31, 2017. Inventory turns were 3x for our domestic and international operations. The increase is primarily, driven by timing of procurement related to hardware products expected to be deployed in Q3.

Accounts receivable were $33.4 million, increased $3.3 million or 10% compared to December 31, 2017. Receivable balance was broken down between Government segment of $9.3 million and the Restaurant/Retail segment of $24.1 million.

The Restaurant/Retail segment days sales outstanding increased from 57 days as of December 2017 to 70 days as of June 2018.

Government days sales outstanding increased from 37 days as of December 2017 to 47 days as of June 2018.

This concludes my formal remarks, and now I will turn the call over for Q&A.

(Operator Instructions) First question comes from [Howard Burroughs] from B. Riley.

Don, Karen, congratulations on a stellar quarter in the SaaS business which brings me really to one question. Why are you not doing a rights offering or spinning off the SaaS business separately from the defense business?

You want to us to spin it off, Howard?

Separate the SaaS business -- absolutely, from the defense business. I understand the defense business generates cash, but there's several methodologies, because frankly, the value of the SaaS business far exceeds anything -- far exceeds the price of the stock as we see today at $18.27. You're doing a great job, you and Karen, no question about that. So yes, separate the 2.

I think Matt Cicchinelli, the President of our PAR Government business is doing a great job also.

I think he is too, but (inaudible).

My answer is the same as it was before, okay? The board always considers, okay, what we can do to maximize shareholder value, it considers the cash generated from the government business to fuel our investments in the Brink, SaaS business, and we consider and evaluate at virtually every meeting the right timing, okay? And we will continue to do so.

All right. So let me then -- second area, SureCheck. We started going back to Q3 of 2017 with significant growth in the first 9 months, then we graduated to the next quarter monetizing basically because of a potential slowdown. Last quarter, not this one, we talked about how mature the market is and now we're talking about 4 opportunities. Can you better define the opportunities in the SaaS area for SureCheck? What kind of margins? What could we look for in 2019?

The answer at this time is that we're really working on our strategic plan for 2019. We'll be presenting to the board in September. As I've said before, many times, we continue to evaluate the potential of SureCheck, potential of monetizing it. It's a work in progress. The market is certainly far behind the majority of the market for the SaaS based Brink business, and our focus, quite honestly and the revenue we're getting is really coming from the Brink side. It's just too early to separate out the financials for SureCheck. But I can assure you we're constantly evaluating it, and we're spending the vast majority our investment resources on Brink.

(Operator Instructions) Our next question is from Adam Wyden from ADW Capital Management.

This is a little bit of a follow-up on [Howard]. I totally get why you're not separating out businesses. Brink is super-growth mode and to some degree is probably constrained by resources. I'm sure you guys saw that Toast raised about $120 million at a $1.4 billion valuation on 10,000 installed units and we're at 65,000 installed units. They -- now I guess their total committed funding is $250 million, if you include the $112 million. And I think we can agree that the total retained earnings of PAR to conception probably hasn't been $250 million. So we can agree that $250 million has not been invested in Brink, yet we're still not that far behind them. I guess my question to you is, do you agree with valuation disconnect? And have you explored maybe potentially raising money at the subsidiary level? I'm not sure if you guys saw this but GM raised money at Cruise automotive (sic) [G. M. Cruise Holdings] from SoftBank at $12 billion valuation. They were reinvesting all the capital from their core automotive business into the autonomous end that was losing money. And it achieved 2 things. It allowed them to free up their resources from their core business and at the same put a place marker on valuation and give growth capital to the future business. I mean, what efforts have been made to kind of explore raising money privately into Brink? And how do you guys hope to narrow the disconnect? Because, as far as I can tell, you guys aren't -- at least -- well, maybe you can correct me -- you guys aren't backing away from your 30,000 or 34,000 unit target on 2020 and I run my math backwards -- 2,000 per year per box if we get to Par Pay and pricing growth. That's $70 million of SaaS and the whole company is valued at $250 million, I think that kind of bridges the gap -- kind of what Howard was saying. So how do we kind of get from point A to point B? How do we get more capital into Brink, so we can really accelerate growth? Because we've got to devote more resources to grow faster, I mean, to do more installations than 1,500 a month to really get the thing moving. I mean, I know I've said a lot there, but I think it's super important. So I'm curious your answers.

We're always interested, we're always interested in what you say and the challenges you present. I'd like to break this in 2 pieces. I'd like to have Bryan address access to capital market, and I would like Karen -- I believe she has a number of things that she'd like to say about the Toast. I believe that it was a $115 million, but I do believe they sold 8% of their company, which would have -- just as you said Adam, give them about $1.4 billion evaluation. I'll let Bryan take the capital question, and I'll take -- I'll let Karen take the comparison to Toast. Bryan?

Adam, thanks for the question. You are correct, and I understand Howard's perspective as well but yes, I mean, the Government business has been providing solid continuous cash flow for the organization for a while. And we continue to see growth in that. That has helped for us to utilize operating cash flow to invest back into the growth into the Brink space. That being said, we're also aware of the competition and the capital raise that's been going on in the space as we continue to see disruption in the POS cloud space within the Restaurant/Retail segment. And as such, what I'll say is we're always assessing our options that we have out there. And I know you brought up a couple of those there, but we're always assessing those -- and how do we continue to address the disruption in the industry.

So you think that you can grow at the same rate as Toast, without ramping up sales and marketing and getting more people? I mean, it seems hard to grow at the same clip and onboard all these things without additional capital in terms of sales and installation. I mean, you think that you guys can get to 34,000 without real growth capital in 2020? I mean, are you guys backing away from that? Karen?

No, we're not.

Let me just say -- let me try one -- we are addressing our capital needs and I can't comment on it now. Hopefully soon. As to comparisons with Toast, Karen (inaudible).

(inaudible)

My only comment to you would be, selling Government or selling hardware, I mean look, I think I agree with Howard, I think that this long term should be a software pure play and to the extent that you can get money for hardware for it, to the extent that you can get a very high valuation for Government, I'm probably for that. But I'm just thinking holistically, high level. You've got competition in Toast that's raised $250 million at a 15x revenue multiple. It seems like from my perspective instead of selling cash flow, fire wood at low multiples, it would behoove you not to try and explore some sort of private capital raise into Brink at evaluation closer to $1.4 billion. Now if it's not $1.4 billion, maybe it's $600 million, maybe $700 million, but I mean trying to monetize kind of the work that you've already done as opposed to trying to sell income-producing assets at less than desirable evaluations. Which leads to my second question, which is payments. So I think we talked on the last call about payments and creating an ISO in merchant services. Your entire competition is basically doing this and again, I go back to the 50 or 60 basis points, I mean, what -- Par Pay is just a module, and it's great. I'm happy to have it, but the real money is making money on the merchant processing for our individual customers. I mean that to me is a 2 or 3x size opportunity. I mean, if you do -- you have 30,000 customers at $1.5 million that's $45 billion of transaction value and, if you're making 60 bps on that, that's $300 million of net payments EBITDA. I mean, even if you were to get half of your customers to do it, it's still $150 million, that's a $2 billion or $3 billion business. I mean, that should be equally as high of a priority for you guys as getting customers. I mean, selling payments into them. I mean, where are we on that?

Can you handle that, Karen?

Adam, good to hear from you. So we are -- as you know, we are investing heavily into the Brink platform and our Brink solutions, and we'll continue to do so. We see huge opportunity for the company in this segment of the market where we're competing. And as Don commented earlier, the -- we're focused on the Tier -- what we call Tier 3C up to Tier 1. So 5 stores and above which is roughly 310,000 restaurants and over 900 individual concepts.

That's just domestic by the way a lot of these chains you're going to get internationally, too.

Yes, you're right, that's North America, and so that does give us opportunity. We're working with multinationals, then that gives us an opportunity to move internationally at the right time, in the right locations. And so we continue to invest heavily and in the platform and to increase our footprint, to increase the site base. We've talked about the fact that this -- as we see it right now is a land grab and we do -- in competing with Toast, Toast has started downmarket as an (inaudible) focus with the Tier 4s and moving into the Tier 3s. As we've noted, we are the only company that has have the success of implementing concepts with more than 1,000 stores and even more when you move to like 500 stores and above. Nobody else is done that yet, there's complications that come with moving -- with being in this market segment.

Well, Toast got Jamba with 1,000 units, didn't they?

They won Jamba. So we have to see them deploy Jamba. So there's a big difference between winning and implementing.

Okay, good point. Sure. And by the way, Jamba just got bought -- Jamba just got bought by Roark as well, which happens to be a customer of ours. (inaudible).

So yes, they did. By Focus Brands. So yes, and we're working with all of those accounts. So that's -- you're right, you're absolutely, right. And so they are making a move. They've raised a lot of capital. And you're correct that we didn't -- we haven't raised as much capital, because we have an infrastructure. We have a service organization, we have implementation organization. So we're -- because we have been in the business...

But they're installing a lot more than 1,500 units per month, I mean, we -- I guess my point is, with $100 million, just hypothetically, again, I'm going to Howard. Right? But like, my view is at 6,500 units, right? And you are not backing away from your 30,000 or 34,000 in 2020, like $70 million in SaaS, we should be able to raise money at somewhere between $500 million and $1 billion, right? And if we could raise $100 million off of that, we could really -- we could, A, hire a lot more installers because my understanding is the bottleneck on installation is having installers and having people. I mean, I think that to me is an advantage Toast has. They have a lot of customer service and they have a lot of installers. So that would solve one thing and then it would allow us to have sales and marketing people to go in and do small and medium-size business where we can payments. I mean, again, I'm not saying sell assets at low prices. I'm saying, this is a huge greenfield market, and we're neck and neck with Toast, 1 and 2, and we should be able to crystallize some of the very attractive venture financing that's going on in the marketplace. I mean, Lightspeed, all these people are raising huge dollars at huge valuations. Meanwhile, our entire company is trading for $250 million and we have $30 million in real estate. We've got a Government business that's worth $100 million. We've got some hardware; we've got SureCheck. I mean, we're effectively valuing this Brink at a very low valuation. So again, I'm really against kind of trying to monetize assets at low multiples when we have a high asset multiple inside of this thing that I think Howard is trying to say, we should be able to be getting VC style capital terms even as a private subsidiary. That's why I used it on Cruise. And by the way, you're also discounting the payments argument to it. I mean, Toast valuation was done on a combined SaaS and payments. We haven't even implemented payments yet. I mean, is that something kind of merchant processing? Where do we stand on that?

Yes, so like we said last quarter, we are a referral partner and that generates revenue and have negotiated better terms, and we are looking to become a retail ISO and, for us, as far as Toast is concerned and others that are in the Tier 4, they are payment facilitators. They're able to -- which comes with risk and cost and that is not a part of our strategy at this point because we're focused up market. But as a retail ISO, it will enable us to participate in the higher rates.

Well, [that's] even more reason to raise capital at an attractive rate, because it provides you the capital to go, move forward, with the merchant processing to the extent that you -- that there are more capital needs on that. I mean, it all kind of points to same thing which is -- I think, Howard and everybody else is kind of scratching their head like I am, to say look, you guys brought this thing with 300 units. You've miraculously taken it to close to 7,000 against competition that's got $250 million worth of venture capital and the question is, is -- if we want to get in line with them, and kind of build the business like theirs, a, capital is very cheap as it relates to SaaS and point of sale; and b, you need to the capital to be competitive. And so I think all of us are really impressed with what you have done, Karen, in buying this thing, but I think it's at the point now where the company kind of needs to put their grownup pants on, and really spend money to kind of be competitive because there's an enormous amount of money going into this. And I think we've got the best product, but we want to win. And I think winning, we've got to have payments and we've got to have a lot of capital. I mean, it's remarkable what you guys have done. But you're at the point now where you can kind of really turn it up.

Adam, it's Don. We're listening Adam. We're listening.

Last question. On SureCheck. There was a thing in your PowerPoint deck that listed McDonald's as a customer. I assume that they're piloting. I mean, Howard asked about this, but you've kind of been flip-flopping in terms of selling it, not selling it, doing it. Clearly, it has some value. But I guess, my question is, has something changed? I mean, it's it inflected? Because you're investing more resources -- clearly not as many as Brink, but I mean -- I guess my question is, is there kind of mind share just kind of futzing around with it? And if you could get $30 million for it, would you sell it today to someone? Or do you really think it's got -- because initially you guys said that the TAM was as big -- was much bigger for this than Brink. So I'm kind of curious, kind of high-level, why you're futzing around with it or has something changed such you think it can be a lot more valuable now?

One answer is we are in a pilot, okay? The second part is, it's just been a slower market to adopt and we're constantly evaluating it. As I mentioned, I believe on our last call, we've basically in version 10.0 -- to be price competitive at certain points, we've basically separated -- we have modules -- separate modules now for food safety, for the digital task management and for the Internet of Things, and we're reevaluating, okay, where market adoption is, where we stand within that market and it's been a -- we're looking at -- how we maximize return for shareholders. So it's very hard to do in a market that's as immature is that is.

Okay, and last question. You guys are still sticking to your 9,000 or 10,000 book for 2018. I mean, is there anything that you see that would lead you to believe that doing 30,000 to 35,000 in 2020 is not on? I mean you've got 6,500, you've done Arby's and Five Guys integration. You're talking at 20%, right? So we say 23% of the 317,000 and I get it, you sold hardware to McDonald's and Subway. I mean, how do you see the backlog building? I know you said bookings of 700. But I mean, that's really just stuff that's going to be installed 60 to 90 days. I mean, can you give people a little bit more insight into the pipeline and your level of confidence in kind of getting up to those numbers, because if you do, this is the most ridiculous stock price we've ever seen.

We are engaged at all stages, okay? With 23% of a market that's over 300,000 that we think we're a leader in, okay? And that's today, okay? So my math is right, 20% of 300,000 is big number, I mean, we're not going to close all of them. We're not going to (inaudible).

And a lot of those big chains are international, too. So if you do well domestically, you'll get some international.

That number, it just gives me an awful lot of confidence. We're getting -- I think our customers are really pleased with our -- with what we're delivering. We're investing in it. I'm very -- I'm -- you know me Adam, I'm very optimistic and we're pushing.

And I'd just like to add, more of that, Adam, is right as we look at, right -- we're looking at the adoption within the market itself, right? So we still believe that's in an early adopter phase. We're seeing that trying starting to move forward into probably more closer to the higher teens. As we talk about the 30,000 sites and it's about 10% market share we're looking at there. That will be something higher than that in regards to a -- that addressable market that actually adopts over say the next 2 to 3 years, okay? And yes you're correct, that is the domestic. So yes, in regards to us, still pursuing on the 30,000 within the next, call it, 2, 2.5 years that, that is still on our radar. We're going forward with that, the opportunity is out there. To your point, we've got to properly make sure that we invest wisely to be able to activate on that.

Right. I mean, I guess my point is, is that you did this Arby's and you did this Five Guys, and you celebrated a 1,500 install. I'd like to see 5,000 installs per quarter, personally or something much greater. I mean, look, to go from 10 to 20 and from 20 to 30, 10 to 20 is 2,500 installs a quarter and 20 to 30 from 19 to 20, it's more. And -- look, it's kind of funny because when you look at Toast, they've done not that much better than you on SaaS. They've clearly done better on payments, but it's SMB, but they've done it with $250 million and you've done it on a shoestring. I would just like to see you guys be able to do the same things they're doing with a big war chest. And it's admirable that you've done it on a shoestring, but now the question becomes, as you start implementing these large scale enterprises, which I think you want and you need. The question is, is, you don't want to be bottlenecked with installers and customer service like you want to be able to say, look, I can implement a Subway, a McDonald's -- I want to be able to implement 5 mega -- monolithic things at once. I just think from a resource perspective, I know it's going to be easier with more money. And you guys should be able to access resources at comparable financing rates, I would think. So that's all I'm saying. I mean, I just want to make sure that you guys understand that you have a wonderful opportunity ahead of you, and we see an enormous amount of capital attracting to the industry and we've got the best product. So we should have that capital so we can be competitive. I think that's my point. I mean, and it's payments, it's everything, right, so. Whatever you guys can do to accelerate the resources devoted to Brink, that's going to accelerate your unit adoption, installation and payments. I think you're going to get very, very, very, very high returns from here.

Thank you for insights. We're listening. Thank you.

Our next question comes from [Howard Burroughs] from B. Riley.

Just to tie a bit of ribbon around what both Adam and I are saying. From my memory -- from a few minutes ago, Bryan, you said you generated $600,000 from cash flow from operations, is that a correct number?

Yes.

That's the point. With $600,000 cash flow from operations, how can you do what we think is very possible to do? And the money is out there, there's no question about it -- at very high multiples of what you're doing.

Understood, Howard. Understood.

I'm showing no further questions at this time. I would now like to turn the call back over to Dr. Foley for closing remarks.

Once again, I'll just end by thanking you for your interest. Thanking you for your insights and I'll just end by what I said the last time, we're listening. Thank you.

Ladies and gentlemen, thank you for participating in today's conference. This does conclude the program, you may all disconnect and have a wonderful day.