NYSE$TOST

Toast Inc. · Q3 2022 earnings

Q3 2022 earnings · · Investor relations

Briefing

Toast's Q3 2022 financial results were announced, revealing revenue growth and exceeding $100B in annualized run-rate GPV for the first time.

Toast reported strong Q3 2022 results with a 55% year-over-year revenue increase to $752 million. The company surpassed $100 billion in annualized GPV for the first time and ARR grew 60% year-over-year. Net loss was $98 million, an improvement from the $254 million net loss in Q3 2021.

  • Total locations increased over 40% year-over-year to approximately 74,000.
  • Revenue grew 55% year-over year to $752 million.
  • ARR as of September 30, 2022 was $868 million, up 60% year-over-year.
  • Gross Payment Volume (GPV) increased 53% year-over-year to $25.2 billion.

Headline financials

Total Revenue

$752M

Previous: $486M+54.6%
EPS (adj)

-$0.19

Previous: -$1.05+81.9%
Gross Payment Volume

$25.2B

Previous: $16.5B+52.7%
Total ARR

$868M

Previous: $544M+59.6%
Capital Expenditures

-$13M

Previous: -$10.6M-23.0%
Free Cash Flow

-$111M

Previous: -$263M+57.8%
Net Income

-$98M

Previous: -$252M+61.2%
Operating Income

-$85M

Previous: -$53.7M-58.3%
Gross Profit

$151M

Previous: $83.3M+81.4%
Cash & Equivalents

$644M

Previous: $1.3B-50.5%
Total Assets

$1.74B

Previous: $1.66B+5.1%
Stock-Based Comp

$57M

Previous: $36.2M+57.4%

Revenue & EPS history

Toast · Revenue · Quarterly

$752M

Q3 2022+54.6%vs Q3 2021
Beat estimate in 12 of 15 quarters(80%)
ActualEstimate

Revenue by segment

Toast · $752M total across 4 segments · Q3 2022

  • Financial Technology Solutions
    $628M+55.4%
  • Subscription Services
    $90M+96.5%
  • Hardware
    $27M-13.0%
  • Professional Services
    $7M+32.1%

Forward guidance

For the fourth quarter ending December 31, 2022, Toast expects to report revenue in the range of $730 million to $760 million and Adjusted EBITDA in the range of $(30) million to $(20) million. For the full year ending December 31, 2022, Toast expects to report revenue in the range of $2,692 million to $2,722 million and Adjusted EBITDA in the range of $(127) million to $(117) 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 Q3 2022

Historical avgQ3 2022

+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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