NYSE$TOST

Toast Inc. · Q2 2023 earnings

Q2 2023 earnings · · Investor relations

Briefing

Toast delivered record results driven by ARR growth and Adjusted EBITDA profitability.

Toast reported record results in Q2 2023, including exceeding $1B in ARR, achieving Adjusted EBITDA profitability, and positive free cash flow for the first time since its IPO. Revenue grew 45% year-over-year to $978 million.

  • ARR reached $1.1 billion, up 45% year-over-year.
  • Gross Payment Volume (GPV) increased 38% year-over-year to $32.1 billion.
  • Total locations increased over 35% year-over-year to approximately 93,000, with net new locations of over 7,500 in Q2 2023.
  • The company achieved positive Adjusted EBITDA for the first time since its IPO.

Headline financials

Total Revenue

$978M

Previous: $675M+44.9%
EPS (adj)

-$0.19

Previous: -$0.11-72.7%
Gross Payment Volume

$32.1B

Previous: $23.3B+37.8%
Total ARR

$1.1B

Previous: $787M+39.8%
Capital Expenditures

-$4M

Previous: -$7M+42.9%
Free Cash Flow

-$102M

Previous: -$61M-67.2%
Net Income

-$98M

Previous: -$54M-81.5%
Operating Income

-$80M

Previous: -$99M+19.2%
Gross Profit

$208M

Previous: $113M+84.1%
Cash & Equivalents

$488M

Previous: $697M-30.0%
Total Assets

$1.8B

Previous: $1.75B+2.6%
Stock-Based Comp

$72M

Previous: $57M+26.3%

Revenue & EPS history

Toast · Revenue · Quarterly

$978M

Q2 2023+44.9%vs Q2 2022
Beat estimate in 12 of 15 quarters(80%)
ActualEstimate

Revenue by segment

Toast · $978M total across 4 segments · Q2 2023

  • Financial Technology Solutions
    $808M+43.8%
  • Subscription Services
    $121M+59.2%
  • Hardware
    $41M+36.7%
  • Professional Services
    $8M+14.3%

Forward guidance

For the third quarter ending September 30, 2023, Toast expects revenue in the range of $1,010 million to $1,040 million and Adjusted EBITDA in the range of $15 million to $25 million. For the full year ending December 31, 2023, Toast expects revenue in the range of $3,810 million to $3,870 million and Adjusted EBITDA in the range of $15 million to $35 million.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q2 2023

Historical avgQ2 2023

+0.8%

Avg return

Earnings day

-1.4%

Avg return

5 days after

-2.6%

Avg return

30 days after

57%

13 / 23 earnings

Positive

+18.2%

Q1 2022

Best reaction

-25.0%

Q4 2022

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026-14.8%-24.0%-16.2%
Q4 2025+4.6%+5.9%+5.6%
Q3 2025+9.5%+7.1%+0.1%
Q1 2025+11.4%+23.0%+20.1%
Q4 2024+0.7%-9.5%-12.0%
Q3 2024+16.6%+22.7%+20.8%
Q2 2024-5.1%-1.2%+0.8%
Q1 2024+13.8%+13.9%-4.0%
Q4 2023+11.3%+8.1%+16.9%
Q3 2023-12.7%-17.3%-11.7%
Q2 2023+13.8%+18.4%+7.1%
Q1 2023+9.1%+0.7%+13.3%
Q4 2022-25.0%-24.8%-34.1%
Q3 2022+16.1%+15.9%+9.4%
Q2 2021+5.6%+7.4%+18.1%
Q2 2022+6.4%+11.8%+16.1%
Q1 2021-2.7%-7.6%+4.8%
Q1 2022+18.2%+6.5%+18.1%
Q4 2019-0.1%-12.8%+5.9%
Q4 2021-16.2%-23.9%-31.0%
Q3 2021-14.3%-17.5%-36.3%
Q3 2020-14.3%-17.5%-36.3%
Q4 2020-14.3%-17.5%-36.3%
Q2 2020
Q1 2020

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