NYSE$TOST

Toast Inc. · Q4 2022 earnings

Q4 2022 earnings · · Investor relations

Briefing

Toast's Q4 2022 financial results were announced, showcasing durable growth and margin improvement.

Toast reported a 50% year-over-year increase in revenue for Q4 2022, reaching $769 million. The company's ARR grew by 59% to $901 million, and GPV increased by 49% to $25.5 billion. While the company experienced a net loss of $99 million, gross profit saw a significant increase of 116%.

  • ARR increased 59% year-over-year to $901 million.
  • Gross Payment Volume (GPV) increased 49% year-over-year to $25.5 billion.
  • Total locations increased nearly 40% year-over-year to approximately 79,000.
  • Revenue grew 50% year-over-year to $769 million.

Headline financials

Total Revenue

$769M

Previous: $512M+50.2%
EPS (adj)

-$0.19

Previous: -$0.23+17.4%
Gross Payment Volume

$25.5B

Previous: $17B+50.0%
Total ARR

$901M

Previous: $568M+58.6%
Capital Expenditures

$3M

Previous: $1.43M+109.8%
Free Cash Flow

-$29M

Previous: -$34M+14.7%
Net Income

-$99M

Previous: $2M-5050.0%
Operating Income

-$99M

Previous: -$116M+14.7%
Gross Profit

$158M

Previous: $73M+116.4%
Cash & Equivalents

$547M

Previous: $809M-32.4%
Total Assets

$1.76B

Previous: $1.74B+1.5%
Stock-Based Comp

$61M

Previous: $44.8M+36.2%

Revenue & EPS history

Toast · Revenue · Quarterly

$769M

Q4 2022+50.2%vs Q4 2021
Beat estimate in 12 of 15 quarters(80%)
ActualEstimate

Revenue by segment

Toast · $769M total across 4 segments · Q4 2022

  • Financial Technology Solutions
    $640M+52.0%
  • Subscription Services
    $95M+75.9%
  • Hardware
    $27M-12.9%
  • Professional Services
    $7M+16.7%

Forward guidance

For the first quarter ending March 31, 2023, Toast expects revenue in the range of $745 million to $775 million and Adjusted EBITDA in the range of $(30) million to $(20) million. For the full year ending December 31, 2023, Toast expects revenue in the range of $3,570 million to $3,660 million and Adjusted EBITDA in the range of $(30) million to $(10) million.

Tailwinds

  • Revenue in the range of $745 million to $775 million
  • Adjusted EBITDA in the range of $(30) million to $(20) million
  • Revenue in the range of $3,570 million to $3,660 million
  • Adjusted EBITDA in the range of $(30) million to $(10) 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 Q4 2022

Historical avgQ4 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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