NYSE$TOST

Toast Inc. · Q3 2023 earnings

Q3 2023 earnings · · Investor relations

Briefing

Toast's Q3 2023 financial performance showed significant growth, driven by ARR and GPV increases, along with improved profitability.

Toast reported a strong Q3 2023, with revenue reaching $1,032 million, a 37% year-over-year increase. ARR grew by 40% to $1,218 million, and GPV increased by 34% to $33.7 billion. The company also saw a significant reduction in net loss, from $(98) million in Q3 2022 to $(31) million in Q3 2023, and achieved an adjusted EBITDA of $35 million compared to $(19) million in the same period last year.

  • ARR increased by 40% year-over-year, reaching $1,218 million.
  • GPV grew by 34% year-over-year to $33.7 billion.
  • Total locations increased 34% year-over-year to approximately 99,000, with net new locations of over 6,500 in Q3 2023.
  • Revenue increased 37% year-over-year to $1,032 million.

Headline financials

Total Revenue

$1.03B

Previous: $752M+37.2%
EPS (adj)

-$0.09

Previous: -$0.19+52.6%
Gross Payment Volume

$33.7B

Previous: $25.2B+33.7%
Total ARR

$1.22B

Previous: $868M+40.3%
Capital Expenditures

-$4M

Previous: -$13M+69.2%
Free Cash Flow

-$35M

Previous: -$111M+68.5%
Net Income

-$31M

Previous: -$98M+68.4%
Operating Income

-$59M

Previous: -$85M+30.6%
Gross Profit

$226M

Previous: $151M+49.7%
Cash & Equivalents

$514M

Previous: $644M-20.2%
Total Assets

$1.83B

Previous: $1.74B+5.3%
R&D Expense

$87M

No prior period
Stock-Based Comp

$71M

Previous: $57M+24.6%

Revenue & EPS history

Toast · Revenue · Quarterly

$1.03B

Q3 2023+37.2%vs Q3 2022
Beat estimate in 12 of 15 quarters(80%)
ActualEstimate

Revenue by segment

Toast · $1.03B total across 4 segments · Q3 2023

  • Financial Technology Solutions
    $856M+36.3%
  • Subscription Services
    $131M+45.6%
  • Hardware
    $34M+25.9%
  • Professional Services
    $11M+57.1%

Forward guidance

For the fourth quarter ending December 31, 2023, Toast expects to report revenue in the range of $1.00 billion to $1.03 billion and Adjusted EBITDA in the range of $5 million to $15 million. For the full year ending December 31, 2023, Toast expects to report revenue in the range of $3.83 billion to $3.86 billion and Adjusted EBITDA in the range of $38 million to $48 million.

Tailwinds

  • Revenue in the range of $1.00 billion to $1.03 billion for Q4 2023.
  • Adjusted EBITDA in the range of $5 million to $15 million for Q4 2023.
  • Revenue in the range of $3.83 billion to $3.86 billion for the full year 2023.
  • Adjusted EBITDA in the range of $38 million to $48 million for the full year 2023.
  • Full year revenue outlook increased from $3.81 billion to $3.87 billion

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 2023

Historical avgQ3 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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