NYSE$TOST

Toast Inc. · Q4 2021 earnings

Q4 2021 earnings · · Investor relations

Briefing

Toast's Q4 2021 financial results were announced, demonstrating substantial year-over-year growth across key metrics.

Toast reported a strong fourth quarter and full year 2021, with significant growth in revenue, ARR, and GPV. The company's focus on its customers and consistent execution led to record results, as the restaurant industry showed tremendous demand for the Toast platform.

  • Fourth quarter revenue increased by 111% year-over-year, reaching $512 million.
  • Annualized Recurring Run-rate (ARR) grew by 74% year-over-year, totaling $568 million as of December 31, 2021.
  • Gross Payment Volume (GPV) for the fourth quarter increased by 125% year-over-year, amounting to $17 billion.
  • Net income for the fourth quarter was $2 million, a significant improvement compared to a net loss of $61 million in the same quarter of the previous year.

Headline financials

Total Revenue

$512M

Previous: $242M+111.2%
EPS (adj)

-$0.23

Previous: $0.69-133.3%
Gross Payment Volume

$17B

Previous: $7.6B+123.7%
Total ARR

$568M

Previous: $326M+74.2%
Capital Expenditures

$1.43M

Previous: -$7.39M+119.4%
Free Cash Flow

-$34M

Previous: -$31M-9.7%
Net Income

$2M

Previous: -$61M+103.3%
Operating Income

-$116M

Previous: -$56.9M-103.8%
Gross Profit

$73M

Previous: $47.1M+55.0%
Cash & Equivalents

$809M

Previous: $582M+39.0%
Total Assets

$1.74B

Previous: $776M+123.6%
Stock-Based Comp

$44.8M

Previous: $27.6M+62.0%

Revenue & EPS history

Toast · Revenue · Quarterly

$512M

Q4 2021+111.2%vs Q4 2020
Beat estimate in 6 of 9 quarters(67%)
ActualEstimate

Revenue by segment

Toast · $512M total across 4 segments · Q4 2021

  • Financial Technology Solutions
    $421M+117.0%
  • Subscription Services
    $54M+86.2%
  • Hardware
    $31M+93.8%
  • Professional Services
    $6M+50.0%

Forward guidance

For the first quarter ending March 31, 2022, Toast expects revenue in the range of $469 million to $499 million and Adjusted EBITDA in the range of $(65) million to $(55) million. For the full year ending December 31, 2022, Toast expects revenue in the range of $2,349 million to $2,409 million and Adjusted EBITDA in the range of $(240) million to $(200) million.

Tailwinds

  • Expected revenue growth in Q1 2022.
  • Anticipated revenue growth for the full year 2022.
  • Continued demand for the Toast platform.
  • Focus on customer satisfaction.
  • Consistent execution of business strategy.

Headwinds

  • Expected Adjusted EBITDA loss in Q1 2022.
  • Anticipated Adjusted EBITDA loss for the full year 2022.
  • Outlook constitutes forward-looking information subject to risks.
  • Based on a number of assumptions.
  • Subject to a number of risks outside Toast’s control.

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 Q4 2021

Historical avgQ4 2021

+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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