NYSE$TOST

Toast Inc. · Q4 2024 earnings

Q4 2024 earnings · · After market close · Investor relations

Briefing

Toast reported strong financial performance in Q4 2024, achieving GAAP profitability for the first time.

Toast reported its first GAAP-profitable year, with revenue growing significantly year-over-year. The company added a record number of new locations and saw strong growth in subscription services and financial technology solutions.

  • Achieved first GAAP-profitable year with $33M in net income for Q4.
  • Revenue increased to $1.34 billion, up from $1.04 billion in Q4 2023.
  • Adjusted EBITDA grew to $111M from $29M in the prior year quarter.
  • Added a record 28,000 net new locations, ending the year with approximately 134,000 locations.

Headline financials

Total Revenue

$1.34B

Previous: $1.04B+29.2%
EPS (adj)

$0.05

Previous: -$0.07+171.4%
Gross Payment Volume

$42.2B

No prior period
Total ARR

$1.63B

No prior period
Payments ARR

$794M

No prior period
Subscription ARR

$832M

No prior period
Adjusted EBITDA

$111M

No prior period
Net Income

$33M

Previous: -$36M+191.7%
Operating Income

$32M

Previous: -$56M+157.1%
Gross Profit

$333M

Previous: $226M+47.3%

Revenue & EPS history

Toast · Revenue · Quarterly

$1.34B

Q4 2024+29.2%vs Q4 2023
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

Toast expects continued growth in 2025, with strong expansion in enterprise and international markets.

Tailwinds

  • Non-GAAP gross profit for Q1 2025 expected to be between $385M and $395M.
  • Adjusted EBITDA guidance for Q1 2025 is $100M to $110M.
  • Full-year 2025 adjusted EBITDA expected to reach $510M to $530M.
  • Toast expanded its partnership with Uber, enhancing delivery capabilities.
  • Increased adoption of Toast Enterprise Solutions with large restaurant chains.

Headwinds

  • Potential macroeconomic headwinds affecting restaurant industry spending.
  • Competitive pressures from other restaurant technology providers.
  • Operational challenges in scaling international expansion.
  • Higher costs associated with customer acquisition in new segments.
  • Ongoing technology investments may impact near-term profitability.

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 2024

Historical avgQ4 2024

+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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