Toast Inc. · Q3 2024 earnings

Briefing

Toast delivered a strong performance, marked by significant growth in ARR, GPV, and locations, alongside achieving profitability and strong cash flow.

Toast reported a strong third quarter with significant growth in key metrics. The company added approximately 7,000 net new locations, grew ARR by 28% to $1.6 billion, and increased GPV by 24% to $41.7 billion. GAAP net income was $56 million, a significant improvement from the previous year's net loss. The company also provided guidance for the fourth quarter and full year, expecting continued growth and profitability.

• Added approximately 7,000 net new locations in Q3 2024.
• ARR grew 28% year-over-year to $1.6 billion as of September 30, 2024.
• GPV increased 24% year-over-year to $41.7 billion.
• Net income was $56 million and Adjusted EBITDA was $113 million in Q3 2024.

Headline financials

Revenue & EPS history

For the fourth quarter ending December 31, 2024, Toast expects Non-GAAP subscription services and financial technology solutions gross profit in the range of $370 million to $380 million (32-35% growth compared to Q4 2023) and Adjusted EBITDA in the range of $90 million to $100 million. For the full year ending December 31, 2024, Toast expects Non-GAAP subscription services and financial technology solutions gross profit in the range of $1,395 million to $1,405 million (32-33% growth compared to 2023, up from 27-29% growth) and Adjusted EBITDA in the range of $352 million to $362 million (up from $285 million to $305 million).