Toast Announces Second Quarter 2024 Financial Results
Toast (TOST), a digital technology platform for restaurants, reported Q2 2024 financial results. The company added approximately 8,000 net new locations. Annualized recurring run-rate (ARR) grew 29% to $1.5 billion.
GAAP operating income reached $5 million, compared to a loss of $(80) million in Q2 2023. Net income was $14 million, a significant improvement from a $(98) million loss the previous year. Adjusted EBITDA was $92 million, up from $15 million. Gross Payment Volume (GPV) increased 26% year over year to $40.5 billion.
Total locations rose 29% to approximately 120,000. GAAP gross profit for subscription services and financial technology solutions grew 27% to $330 million, while non-GAAP gross profit increased 29% to $344 million.
For Q3 2024, Toast expects non-GAAP gross profit of $345M-$355M and Adjusted EBITDA of $70M-$80M. For the full year, it projects gross profit of $1,340M-$1,360M and Adjusted EBITDA of $285M-$305M.
Toast (TOST), una piattaforma tecnologica digitale per ristoranti, ha riportato i risultati finanziari del Q2 2024. L'azienda ha aggiunto circa 8.000 nuove sedi nette. Il tasso di crescita annualizzato ricorrente (ARR) è aumentato del 29% raggiungendo i 1,5 miliardi di dollari.
Il reddito operativo GAAP ha raggiunto i 5 milioni di dollari, rispetto a una perdita di $(80) milioni nel Q2 2023. Il reddito netto è stato di 14 milioni di dollari, un miglioramento significativo rispetto a una perdita di $(98) milioni l'anno precedente. L'EBITDA rettificato è stato di 92 milioni di dollari, in aumento rispetto ai 15 milioni di dollari. Il volume totale dei pagamenti (GPV) è aumentato del 26% su base annua, raggiungendo i 40,5 miliardi di dollari.
Il numero totale delle sedi è aumentato del 29% raggiungendo circa 120.000. Il profitto lordo GAAP per i servizi di abbonamento e le soluzioni tecnologiche finanziarie è aumentato del 27% a 330 milioni di dollari, mentre il profitto lordo non-GAAP è aumentato del 29% a 344 milioni di dollari.
Per il Q3 2024, Toast prevede un profitto lordo non-GAAP di 345M-355M dollari e un EBITDA rettificato di 70M-80M dollari. Per l'intero anno, prevede un profitto lordo di 1.340M-1.360M dollari e un EBITDA rettificato di 285M-305M dollari.
Toast (TOST), una plataforma de tecnología digital para restaurantes, ha reportado los resultados financieros del Q2 2024. La compañía agregó aproximadamente 8,000 nuevas ubicaciones netas. La tasa de ingresos recurrentes anualizada (ARR) creció un 29% alcanzando los 1.5 mil millones de dólares.
El ingreso operativo GAAP alcanzó los 5 millones de dólares, en comparación con una pérdida de $(80) millones en el Q2 2023. El ingreso neto fue de 14 millones de dólares, una mejora significativa frente a una pérdida de $(98) millones el año anterior. El EBITDA ajustado fue de 92 millones de dólares, en aumento desde los 15 millones. El Volumen Bruto de Pagos (GPV) aumentó un 26% interanual hasta alcanzar los 40.5 mil millones de dólares.
El total de ubicaciones subió un 29% aproximadamente a 120,000. La ganancia bruta GAAP por servicios de suscripción y soluciones de tecnología financiera creció un 27% a 330 millones de dólares, mientras que la ganancia bruta no GAAP aumentó un 29% a 344 millones de dólares.
Para el Q3 2024, Toast espera una ganancia bruta no GAAP de 345M-355M dólares y un EBITDA ajustado de 70M-80M dólares. Para el año completo, proyecta una ganancia bruta de 1,340M-1,360M dólares y un EBITDA ajustado de 285M-305M dólares.
토스트(TOST), 레스토랑용 디지털 기술 플랫폼, 2024년 2분기 재무 결과를 발표했습니다. 이 회사는 약 8,000개의 순 신규 위치를 추가했습니다. 연간 반복 수익률(ARR)은 29% 성장하여 15억 달러에 도달했습니다.
GAAP 운영 수익은 500만 달러에 도달했으며, 2023년 2분기에는 $(80)백만 달러의 손실과 비교되었습니다. 순수익은 1,400만 달러로, 작년의 $(98)백만 달러 손실에서 상당한 개선을 보였습니다. 조정된 EBITDA는 9200만 달러로, 1500만 달러에서 증가했습니다. 총 결제 볼륨(GPV)은 전년 대비 26% 증가하여 405억 달러에 도달했습니다.
총 위치 수는 29% 증가하여 약 120,000개에 달했습니다. 구독 서비스 및 금융 기술 솔루션에 대한 GAAP 총 이익은 27% 증가하여 3억 3천만 달러에 도달했고, 비 GAAP 총 이익은 29% 증가하여 3억 4천 4백만 달러에 도달했습니다.
2024년 3분기 계획으로 토스트는 비 GAAP 총 이익을 3억 4천 5백만~3억 5천 5백만 달러, 조정된 EBITDA를 7천만~8천만 달러로 예상합니다. 연간 보정 총 이익은 13억 4천만~13억 6천만 달러, 조정 EBITDA는 2억 8천 5백만~3억 5백만 달러로 예상합니다.
Toast (TOST), une plateforme de technologie numérique pour les restaurants, a annoncé ses résultats financiers du T2 2024. L'entreprise a ajouté environ 8 000 nouveaux emplacements nets. Le chiffre d'affaires récurrent annualisé (ARR) a augmenté de 29 % pour atteindre 1,5 milliard de dollars.
Le résultat opérationnel selon les normes GAAP a atteint 5 millions de dollars, contre une perte de $(80) millions au T2 2023. Le résultat net s'est élevé à 14 millions de dollars, une amélioration significative par rapport à une perte de $(98) millions l'année précédente. Le EBITDA ajusté a atteint 92 millions de dollars, en hausse par rapport à 15 millions. Le volume brut des paiements (GPV) a augmenté de 26 % d'une année sur l'autre pour atteindre 40,5 milliards de dollars.
Le nombre total d'emplacements a augmenté de 29 % pour atteindre environ 120 000. Le bénéfice brut GAAP pour les services d'abonnement et les solutions technologiques financières a augmenté de 27 % pour atteindre 330 millions de dollars, tandis que le bénéfice brut non-GAAP a augmenté de 29 % pour atteindre 344 millions de dollars.
Pour le T3 2024, Toast s'attend à un bénéfice brut non-GAAP de 345M-355M dollars et un EBITDA ajusté de 70M-80M dollars. Pour l'année complète, il projette un bénéfice brut de 1,340M-1,360M dollars et un EBITDA ajusté de 285M-305M dollars.
Toast (TOST), eine digitale Technologieplattform für Restaurants, hat die Finanzergebnisse für das Q2 2024 veröffentlicht. Das Unternehmen hat etwa 8.000 netto neue Standorte hinzugefügt. Der annualisierte wiederkehrende Umsatz (ARR) wuchs um 29 % auf 1,5 Milliarden Dollar.
Der GAAP-Betriebsgewinn betrug 5 Millionen Dollar, verglichen mit einem Verlust von $(80) Millionen im Q2 2023. Der Nettogewinn lag bei 14 Millionen Dollar, ein erheblicher Anstieg im Vergleich zu einem Verlust von $(98) Millionen im Vorjahr. Das bereinigte EBITDA betrug 92 Millionen Dollar, ein Anstieg von 15 Millionen Dollar. Das Bruttobezahlvolumen (GPV) stieg im Jahresvergleich um 26 % auf 40,5 Milliarden Dollar.
Die Gesamtanzahl der Standorte stieg um 29 % auf etwa 120.000. Der GAAP-Bruttogewinn aus Abonnements und Finanztechnologielösungen wuchs um 27 % auf 330 Millionen Dollar, während der Nicht-GAAP-Bruttogewinn um 29 % auf 344 Millionen Dollar anstieg.
Für das Q3 2024 erwartet Toast einen Nicht-GAAP-Bruttogewinn von 345M-355M Dollar und ein bereinigtes EBITDA von 70M-80M Dollar. Für das gesamte Jahr prognostiziert das Unternehmen einen Bruttogewinn von 1.340M-1.360M Dollar und ein bereinigtes EBITDA von 285M-305M Dollar.
- ARR grew 29% to $1.5 billion.
- GAAP operating income was $5 million in Q2 2024.
- Net income was $14 million, compared to a $(98) million loss in Q2 2023.
- Adjusted EBITDA was $92 million, up from $15 million in Q2 2023.
- GPV increased 26% year over year to $40.5 billion.
- Total locations increased 29% year over year to approximately 120,000.
- GAAP gross profit for subscription services and financial technology solutions grew 27% to $330 million.
- Non-GAAP gross profit increased 29% to $344 million.
- Net cash provided by operating activities was $124 million, compared to $50 million in Q2 2023.
- Free Cash Flow was $108 million, compared to $39 million in Q2 2023.
- None.
Insights
Toast's Q2 2024 results demonstrate robust growth and improved profitability, signaling a positive trajectory for the company. The 29% YoY increase in ARR to
The company's ability to add 8,000 net new locations while expanding margins showcases effective scaling strategies. The increase in Adjusted EBITDA to
Toast's performance indicates a growing demand for digital restaurant technology. The
The substantial growth in GPV and ARR points to increased customer reliance on Toast's platform, potentially indicating a shift in the restaurant industry towards more comprehensive digital solutions. This trend could lead to higher customer retention and upselling opportunities for Toast, supporting long-term growth prospects in the competitive restaurant tech space.
Toast's emphasis on platform and data investments is important for maintaining its competitive edge. The company's focus on best-in-class customer experience suggests ongoing improvements in user interface and functionality. This approach likely contributes to customer satisfaction and retention, driving the impressive growth in locations and ARR.
The transition to GAAP profitability ahead of expectations indicates that Toast's technology investments are yielding operational efficiencies. As the company continues to scale, its ability to leverage data for personalized services and predictive analytics could further enhance its value proposition, potentially leading to increased market share and revenue per customer in the highly competitive restaurant technology sector.
Added approximately 8,000 net new Locations in second quarter 2024
Annualized recurring run-rate (ARR) as of June 30, 2024 grew
Achieved GAAP operating income of
Net income was
“Our team executed incredibly well in the second quarter and delivered strong results, including adding a record number of net locations and achieving GAAP profitability ahead of expectations. We are sustaining growth at scale while expanding margins by taking a disciplined approach to investing our resources against our most important priorities,” said Toast CEO and Co-Founder Aman Narang. “We continue to see strong growth domestically across restaurant types while building on our momentum internationally and across exciting new verticals like food and beverage retail. Our best-in-class customer experience, further strengthened by our platform and data investments, remains the foundation helping us scale and grow.”
Financial Highlights for the Second Quarter of 2024
-
ARR as of June 30, 2024 was
$1.5 billion 29% year over year. -
Gross Payment Volume (GPV) increased
26% year over year to$40.5 billion -
Total Locations increased
29% year over year to approximately 120,000. -
GAAP subscription services and financial technology solutions gross profit was up
27% year over year from Q2 2023 to$330 million 29% year over year to$344 million -
GAAP operating income was
$5 million $(80) million -
GAAP net income was
$14 million $(98) million $92 million $15 million -
Net cash provided by operating activities of
$124 million $108 million $50 million $39 million
Percentages may not tie due to rounding. For more information on the non-GAAP financial measures and key metrics discussed in this press release, please see the sections titled “Key Business Metrics” and “Non-GAAP Financial Measures,” as well as the reconciliations of non-GAAP financial measures to their nearest comparable GAAP financial measures at the end of this press release.
Outlook1
For the third quarter ending September 30, 2024, Toast expects to report:
-
Non-GAAP subscription services and financial technology solutions gross profit in the range of
$345 million $355 million -27% growth compared to Q3 2023) -
Adjusted EBITDA in the range of
$70 million $80 million
For the full year ending December 31, 2024, Toast expects to report:
-
Non-GAAP subscription services and financial technology solutions gross profit in the range of
$1,340 million $1,360 million -29% growth compared to 2023, up from 25-27% growth) -
Adjusted EBITDA in the range of
$285 million $305 million $250 million $270 million
The outlook provided above constitutes forward-looking information within the meaning of applicable securities laws and is based on a number of assumptions and subject to a number of risks. See cautionary note regarding “Forward-looking Statements” in this press release.
Recent Business Highlights
-
Showing continued momentum with larger customers, Toast recently signed customers including Sonny’s BBQ, Uno Pizzeria & Grills, Hwy 55, and PPX Hospitality Group, which owns brands including Legal Sea Foods, representing a cumulative commitment of more than 200 locations across the
U.S. -
Toast garnered a host of workplace awards in the second quarter, including being named a Great Place to Work in
Canada ,India ,Ireland ,Taiwan , theUnited Kingdom , andthe United States ; named to theU.S. News Best Companies To Work For list; and named a Fortune Best Workplaces for Millennials™ inthe United States . These build on being awarded to Glassdoor Best Places to Work 2024 list earlier in the year. -
In June, Toast launched an AI innovation hub, highlighting some of Toast’s AI-powered innovations released to date such as Benchmarking, Instant Toast Support, and an AI-Powered Marketing Assistant. A recent survey from Toast showed that
57% of restaurants surveyed reported already using or wanting to use AI-powered experiences2.
Conference Call Information
Toast will host a live conference call at 5:00 p.m. Eastern Time on Tuesday, August 6, 2024. The live webcast of the conference call can be accessed through Toast’s investor relations website at http://investors.toasttab.com. A replay of the webcast will be available for a period of 90 days after the call.
Toast has used, and intends to continue to use, its Investor Relations website (http://investors.toasttab.com), as well as the Toast Newsroom (https://pos.toasttab.com/news), as a means of disclosing material non-public information and for complying with its disclosure obligations under Regulation FD. Information on or that can be accessed through Toast’s Investor Relations website, or that is contained in any website to which a hyperlink is provided herein is not part of this press release, and the inclusion of Toast’s Investor Relations website address, and any hyperlinks are only inactive textual references.
About Toast
Toast is a cloud-based, all-in-one digital technology platform purpose-built for the entire restaurant community. Toast provides a comprehensive platform of software as a service (SaaS) products and financial technology solutions that give restaurants everything they need to run their business across point of sale, payments, operations, digital ordering and delivery, marketing and loyalty, and team management. We serve as the restaurant operating system, connecting front of house and back of house operations across service models including dine-in, takeout, delivery, catering, and retail. Toast helps restaurants streamline operations, increase revenue and deliver amazing guest experiences. For more information, visit www.toasttab.com.
| _________________________ |
1 A reconciliation of these forward looking Non-GAAP measures to the corresponding GAAP measure is not available without unreasonable effort because of the inherent difficulty of accurately forecasting the occurrence and financial impact of the various adjusting items necessary for such reconciliations that have not yet occurred, are out of our control, or cannot be reasonably predicted, including but not limited to the change in fair value of our warrant liability and stock-based compensation. For the same reasons, the Company is unable to assess the probable significance of the unavailable information, which could have a material impact on its future GAAP financial results. |
2 To help better understand the restaurant industry, Toast conducted a blind survey of 755 restaurant decision-makers operating 16 or fewer locations in |
Forward-looking Statements
This press release contains “forward-looking statements,” within the meaning of Section 27A of the Securities Act of 1933, Section 21E of the Securities Exchange Act of 1934 and the Private Securities Litigation Reform Act of 1995. Forward-looking statements may be identified by the context of the statement and generally arise when Toast or its management is discussing its beliefs, estimates or expectations. Such statements generally include the words “believes,” “plans,” “intends,” “targets,” “may,” “could,” “should,” “will,” “expects,” “estimates,” “suggests,” “anticipates,” “outlook,” “continues,” or similar expressions. These statements are not historical facts or guarantees of future performance, but represent the beliefs of Toast and its management at the time the statements were made regarding future events which are subject to certain risks, uncertainties and other factors, many of which are outside Toast’s control. Actual results and outcomes may differ materially from what is expressed or forecast in such forward-looking statements. Forward-looking statements include, without limitation, statements about expected financial positions or growth; results of operations; cash flows; guidance on financial results for the third fiscal quarter and full year of 2024; statements about future operating results; the expectations of demand for Toast’s products and growth of its business; statements about new products and offerings and the benefits thereof; the growth rates in the markets in which Toast competes; Toast’s investments in technology and infrastructure; Toast’s ability to deliver innovative solutions; Toast’s ability to attract and retain customers and the commitments from its customers; financing plans; business strategy; operating plans; competitive positions; and growth opportunities for existing products.
The forward-looking statements contained in this release are also subject to other risks and uncertainties, including those more fully described in Toast’s filings with the Securities and Exchange Commission (“SEC”), including in the sections entitled “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations'' in Toast’s Annual Report on Form 10-K for the year ended December 31, 2023, Toast’s Quarterly Report on Form 10-Q for the three and six months ended June 30, 2024 that will be filed following this earnings release, and Toast’s subsequent SEC filings. Toast can give no assurance that the plans, intentions, expectations or strategies as reflected in or suggested by those forward-looking statements will be attained or achieved. The forward-looking statements in this release are based on information available to Toast as of the date hereof, and Toast disclaims any obligation to update any forward-looking statements, except as required by law. These forward-looking statements should not be relied upon as representing Toast’s views as of any date subsequent to the date of this press release.
TOAST, INC. CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (unaudited) (in millions, except per share amounts) |
|||||||||||||||
|
Three Months Ended June 30, |
|
Six Months Ended June 30, |
||||||||||||
|
|
2024 |
|
|
|
2023 |
|
|
|
2024 |
|
|
|
2023 |
|
Revenue: |
|
|
|
|
|
|
|
||||||||
Subscription services |
$ |
166 |
|
|
$ |
121 |
|
|
$ |
318 |
|
|
$ |
227 |
|
Financial technology solutions |
|
1,023 |
|
|
|
808 |
|
|
|
1,896 |
|
|
|
1,482 |
|
Hardware and professional services |
|
53 |
|
|
|
49 |
|
|
|
104 |
|
|
|
88 |
|
Total revenue |
|
1,242 |
|
|
|
978 |
|
|
|
2,318 |
|
|
|
1,797 |
|
Costs of revenue: |
|
|
|
|
|
|
|
||||||||
Subscription services |
|
53 |
|
|
|
39 |
|
|
|
103 |
|
|
|
75 |
|
Financial technology solutions |
|
806 |
|
|
|
631 |
|
|
|
1,488 |
|
|
|
1,155 |
|
Hardware and professional services |
|
96 |
|
|
|
99 |
|
|
|
188 |
|
|
|
183 |
|
Amortization of acquired intangible assets |
|
1 |
|
|
|
1 |
|
|
|
2 |
|
|
|
2 |
|
Total costs of revenue |
|
956 |
|
|
|
770 |
|
|
|
1,781 |
|
|
|
1,415 |
|
Gross profit |
|
286 |
|
|
|
208 |
|
|
|
537 |
|
|
|
382 |
|
Operating expenses: |
|
|
|
|
|
|
|
||||||||
Sales and marketing |
|
115 |
|
|
|
100 |
|
|
|
222 |
|
|
|
199 |
|
Research and development |
|
87 |
|
|
|
92 |
|
|
|
169 |
|
|
|
177 |
|
General and administrative |
|
75 |
|
|
|
96 |
|
|
|
149 |
|
|
|
179 |
|
Restructuring expenses |
|
4 |
|
|
|
— |
|
|
|
46 |
|
|
|
— |
|
Total operating expenses |
|
281 |
|
|
|
288 |
|
|
|
586 |
|
|
|
555 |
|
Income (loss) from operations |
|
5 |
|
|
|
(80 |
) |
|
|
(49 |
) |
|
|
(173 |
) |
Other income (expense): |
|
|
|
|
|
|
|
||||||||
Interest income, net |
|
10 |
|
|
|
9 |
|
|
|
20 |
|
|
|
17 |
|
Change in fair value of warrant liability |
|
(1 |
) |
|
|
(26 |
) |
|
|
(37 |
) |
|
|
(23 |
) |
Other income (expense), net |
|
— |
|
|
|
— |
|
|
|
(1 |
) |
|
|
1 |
|
Income (loss) before taxes |
|
14 |
|
|
|
(97 |
) |
|
|
(67 |
) |
|
|
(178 |
) |
Income tax expense |
|
— |
|
|
|
(1 |
) |
|
|
(2 |
) |
|
|
(1 |
) |
Net income (loss) |
$ |
14 |
|
|
$ |
(98 |
) |
|
$ |
(69 |
) |
|
$ |
(179 |
) |
Earnings (loss) per share attributable to common stockholders: |
|
|
|
|
|
|
|
||||||||
Basic |
$ |
0.03 |
|
|
$ |
(0.19 |
) |
|
$ |
(0.13 |
) |
|
$ |
(0.34 |
) |
Diluted |
$ |
0.02 |
|
|
$ |
(0.19 |
) |
|
$ |
(0.13 |
) |
|
$ |
(0.34 |
) |
Weighted-average shares used in computing earnings (loss) per share: |
|
|
|
|
|
|
|
||||||||
Basic |
|
556 |
|
|
|
529 |
|
|
|
552 |
|
|
|
527 |
|
Diluted |
|
587 |
|
|
|
529 |
|
|
|
552 |
|
|
|
527 |
|
TOAST, INC. CONDENSED CONSOLIDATED BALANCE SHEETS (unaudited) (in millions, except per share amounts) |
|||||||
|
June 30, 2024 |
|
December 31, 2023 |
||||
Assets: |
|
|
|
||||
Current assets: |
|
|
|
||||
Cash and cash equivalents |
$ |
691 |
|
|
$ |
605 |
|
Marketable securities |
|
528 |
|
|
|
519 |
|
Accounts receivable, net |
|
101 |
|
|
|
69 |
|
Inventories, net |
|
110 |
|
|
|
118 |
|
Other current assets |
|
309 |
|
|
|
259 |
|
Total current assets |
|
1,739 |
|
|
|
1,570 |
|
Property and equipment, net |
|
90 |
|
|
|
75 |
|
Operating lease right-of-use assets |
|
33 |
|
|
|
36 |
|
Intangible assets, net |
|
23 |
|
|
|
26 |
|
Goodwill |
|
113 |
|
|
|
113 |
|
Restricted cash |
|
58 |
|
|
|
55 |
|
Other non-current assets |
|
99 |
|
|
|
83 |
|
Total non-current assets |
|
416 |
|
|
|
388 |
|
Total assets |
$ |
2,155 |
|
|
$ |
1,958 |
|
Liabilities and Stockholders’ Equity: |
|
|
|
||||
Current liabilities: |
|
|
|
||||
Accounts payable |
$ |
33 |
|
|
$ |
32 |
|
Deferred revenue |
|
62 |
|
|
|
39 |
|
Accrued expenses and other current liabilities |
|
641 |
|
|
|
592 |
|
Total current liabilities |
|
736 |
|
|
|
663 |
|
Warrants to purchase common stock |
|
101 |
|
|
|
64 |
|
Operating lease liabilities |
|
29 |
|
|
|
33 |
|
Other long-term liabilities |
|
6 |
|
|
|
4 |
|
Total liabilities |
|
872 |
|
|
|
764 |
|
Commitments and Contingencies |
|
|
|
||||
Stockholders’ Equity: |
|
|
|
||||
Preferred stock- par value |
|
— |
|
|
|
— |
|
Common stock, |
|||||||
Class A - 7,000 shares authorized; 458 and 429 shares issued and outstanding as of June 30, 2024 and December 31, 2023, respectively Class B - 700 shares authorized; 102 and 114 shares issued and outstanding as of June 30, 2024 and December 31, 2023, respectively |
|
— |
|
|
|
— |
|
Accumulated other comprehensive loss |
|
(1 |
) |
|
|
— |
|
Additional paid-in capital |
|
2,976 |
|
|
|
2,817 |
|
Accumulated deficit |
|
(1,692 |
) |
|
|
(1,623 |
) |
Total stockholders’ equity |
|
1,283 |
|
|
|
1,194 |
|
Total liabilities and stockholders’ equity |
$ |
2,155 |
|
|
$ |
1,958 |
|
TOAST, INC. CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (unaudited) (in millions) |
|||||||||||||||
|
Three Months Ended June 30, |
|
Six Months Ended June 30, |
||||||||||||
|
|
2024 |
|
|
|
2023 |
|
|
|
2024 |
|
|
|
2023 |
|
Cash flows from operating activities: |
|
|
|
|
|
|
|
||||||||
Net income (loss) |
$ |
14 |
|
|
$ |
(98 |
) |
|
$ |
(69 |
) |
|
$ |
(179 |
) |
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: |
|
|
|
|
|
|
|
||||||||
Depreciation and amortization |
|
12 |
|
|
|
8 |
|
|
|
23 |
|
|
|
14 |
|
Stock-based compensation expense |
|
67 |
|
|
|
72 |
|
|
|
133 |
|
|
|
135 |
|
Amortization of deferred contract acquisition costs |
|
19 |
|
|
|
14 |
|
|
|
38 |
|
|
|
28 |
|
Change in fair value of warrant liability |
|
1 |
|
|
|
26 |
|
|
|
37 |
|
|
|
23 |
|
Credit loss expense |
|
17 |
|
|
|
12 |
|
|
|
32 |
|
|
|
25 |
|
Asset impairments |
|
1 |
|
|
|
15 |
|
|
|
1 |
|
|
|
15 |
|
Other non-cash items |
|
(1 |
) |
|
|
(12 |
) |
|
|
(3 |
) |
|
|
(13 |
) |
Changes in operating assets and liabilities: |
|
|
|
|
|
|
|
||||||||
Accounts receivable, net |
|
(23 |
) |
|
|
(22 |
) |
|
|
(45 |
) |
|
|
(42 |
) |
Other current assets |
|
5 |
|
|
|
3 |
|
|
|
(14 |
) |
|
|
(3 |
) |
Deferred contract acquisition costs |
|
(33 |
) |
|
|
(26 |
) |
|
|
(63 |
) |
|
|
(50 |
) |
Inventories, net |
|
10 |
|
|
|
5 |
|
|
|
8 |
|
|
|
4 |
|
Accounts payable |
|
(14 |
) |
|
|
6 |
|
|
|
2 |
|
|
|
12 |
|
Accrued expenses and other current liabilities |
|
38 |
|
|
|
44 |
|
|
|
1 |
|
|
|
24 |
|
Deferred revenue |
|
13 |
|
|
|
4 |
|
|
|
24 |
|
|
|
7 |
|
Operating lease right-of-use assets and operating lease liabilities, net |
|
— |
|
|
|
1 |
|
|
|
— |
|
|
|
1 |
|
Other assets and liabilities |
|
(2 |
) |
|
|
(2 |
) |
|
|
(1 |
) |
|
|
(6 |
) |
Net cash provided by (used in) operating activities |
|
124 |
|
|
|
50 |
|
|
|
104 |
|
|
|
(5 |
) |
Cash flows from investing activities: |
|
|
|
|
|
|
|
||||||||
Cash paid for acquisition, net of cash acquired |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(9 |
) |
Capital expenditures |
|
(16 |
) |
|
|
(11 |
) |
|
|
(29 |
) |
|
|
(21 |
) |
Purchases of marketable securities |
|
(131 |
) |
|
|
(175 |
) |
|
|
(276 |
) |
|
|
(351 |
) |
Proceeds from the sale of marketable securities |
|
35 |
|
|
|
6 |
|
|
|
53 |
|
|
|
13 |
|
Maturities of marketable securities |
|
108 |
|
|
|
168 |
|
|
|
219 |
|
|
|
315 |
|
Other investing activities |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(1 |
) |
Net cash used in investing activities |
|
(4 |
) |
|
|
(12 |
) |
|
|
(33 |
) |
|
|
(54 |
) |
Cash flows from financing activities: |
|
|
|
|
|
|
|
||||||||
Change in customer funds obligations, net |
|
(21 |
) |
|
|
(6 |
) |
|
|
28 |
|
|
|
31 |
|
Proceeds from issuance of common stock |
|
26 |
|
|
|
4 |
|
|
|
55 |
|
|
|
15 |
|
Repurchases of Class A common stock |
|
(32 |
) |
|
|
— |
|
|
|
(36 |
) |
|
|
— |
|
Net cash provided by (used in) financing activities |
|
(27 |
) |
|
|
(2 |
) |
|
|
47 |
|
|
|
46 |
|
Net increase (decrease) in cash, cash equivalents, cash held on behalf of customers and restricted cash |
|
93 |
|
|
|
36 |
|
|
|
118 |
|
|
|
(13 |
) |
Effect of exchange rate changes on cash and cash equivalents and restricted cash |
|
— |
|
|
|
— |
|
|
|
(1 |
) |
|
|
— |
|
Cash, cash equivalents, cash held on behalf of customers and restricted cash at beginning of period |
|
771 |
|
|
|
586 |
|
|
|
747 |
|
|
|
635 |
|
Cash, cash equivalents, cash held on behalf of customers and restricted cash at end of period |
$ |
864 |
|
|
$ |
622 |
|
|
$ |
864 |
|
|
$ |
622 |
|
Reconciliation of cash, cash equivalents, cash held on behalf of customers and restricted cash |
|
|
|
|
|
|
|
||||||||
Cash and cash equivalents |
$ |
691 |
|
|
$ |
488 |
|
|
$ |
691 |
|
|
$ |
488 |
|
Cash held on behalf of customers |
|
115 |
|
|
|
91 |
|
|
|
115 |
|
|
|
91 |
|
Restricted cash |
|
58 |
|
|
|
43 |
|
|
|
58 |
|
|
|
43 |
|
Total cash, cash equivalents, cash held on behalf of customers and restricted cash |
$ |
864 |
|
|
$ |
622 |
|
|
$ |
864 |
|
|
$ |
622 |
|
Non-GAAP Financial Measures
In this press release, Toast refers to non-GAAP financial measures that are derived on the basis of methodologies other than in accordance with
In the tables below, Toast has provided reconciliations of these non-GAAP financial measures to the most directly comparable financial measures calculated and presented in accordance with GAAP. These non-GAAP financial measures should not be considered substitutes for financial measures calculated in accordance with GAAP, and the financial results that Toast calculates and presents in the table in accordance with GAAP, as well as the corresponding reconciliations from those results, should be carefully evaluated.
The following are the non-GAAP financial measures referenced in this press release and presented in the tables below:
- Adjusted EBITDA is defined as net income (loss), adjusted to exclude stock-based compensation expense and related payroll tax expense, depreciation and amortization expense, interest income (expense), net, income taxes and certain other items that are not considered to reflect our operating activities and performance within the ordinary course of business, such as restructuring and restructuring-related expenses, acquisition expenses, fair value adjustments on warrant liabilities, expenses related to early termination of leases (which includes associated asset impairments) and stock-based charitable contribution expense, as applicable.
- Non-GAAP Subscription Services and Financial Technology Solutions Gross Profit is defined as subscription services gross profit and financial technology solutions gross profit, adjusted to exclude stock-based compensation expense and related payroll tax expense, and depreciation and amortization expense.
- Non-GAAP Costs of Revenue are defined as costs of revenue excluding stock-based compensation expense and related payroll tax expense, and depreciation and amortization expense.
- Non-GAAP Gross Profit is defined as gross profit excluding stock-based compensation expense and related payroll tax expense, and depreciation and amortization expense.
- Non-GAAP Subscription Services Gross Profit is defined as subscription services gross profit excluding stock-based compensation expense and related payroll tax expense, and depreciation and amortization expense.
- Non-GAAP Financial Technology Solutions Gross Profit is defined as financial technology solutions gross profit excluding stock-based compensation expense and related payroll tax expense, and depreciation and amortization expense.
- Non-GAAP Hardware and Professional Services Gross Profit is defined as hardware and professional services gross profit excluding stock-based compensation expense and related payroll tax expense, and depreciation and amortization expense.
- Non-GAAP Non-Payments Financial Technology Solutions Gross Profit is defined as financial technology gross profit excluding payments financial technology gross profit.
- Non-GAAP Sales and Marketing Expenses are defined as sales and marketing expenses excluding stock-based compensation expense and related payroll tax expense, and depreciation and amortization expense.
- Non-GAAP Research and Development Expenses are defined as research and development expenses excluding stock-based compensation expense and related payroll tax expense, and depreciation and amortization expense.
- Non-GAAP General and Administrative Expenses are defined as general and administrative expenses excluding stock-based compensation expense and related payroll tax expense, depreciation and amortization expense, acquisition expenses, expenses related to early termination of leases (which includes associated asset impairments), and stock-based charitable contribution expense.
- Free Cash Flow is defined as net cash provided by (used in) operating activities reduced by purchases of property and equipment and capitalization of internal-use software costs (collectively referred to as capital expenditures).
Adjusted EBITDA, Non-GAAP Subscription Services and Financial Technology Solutions Gross Profit, Non-GAAP Costs of Revenue, Non-GAAP Gross Profit, Non-GAAP Subscription Services Gross Profit, Non-GAAP Financial Technology Gross Profit, Non-GAAP Hardware and Professional Services Gross Profit, Non-GAAP Non-Payments Financial Technology Solutions Gross Profit, Non-GAAP Sales and Marketing Expenses, Non-GAAP Research and Development Expenses, Non-GAAP General and Administrative Expenses, and Free Cash Flow do not purport to represent profitability and liquidity measures as defined in accordance with GAAP. These measures are provided to investors and others to improve the quarter-to-quarter and year-to-year comparability of Toast's financial results and to ensure that investors understand the information Toast uses to evaluate the performance of its businesses.
Our definitions may differ from the definitions used by other companies and therefore comparability may be limited. In addition, other companies may not publish these or similar metrics. Further, these metrics have certain limitations since they do not include the impact of certain expenses and cash flows that are reflected in our Consolidated Statements of Operations and Consolidated Statements of Cash Flows. Thus, our Adjusted EBITDA, Non-GAAP Subscription Services and Financial Technology Solutions Gross Profit, Non-GAAP Costs of Revenue, Non-GAAP Gross Profit, Non-GAAP Subscription Services Gross Profit, Non-GAAP Financial Technology Gross Profit, Non-GAAP Hardware and Professional Services Gross Profit, Non-GAAP Non-Payments Financial Technology Solutions Gross Profit, Non-GAAP Sales and Marketing Expenses, Non-GAAP Research and Development Expenses, Non-GAAP General and Administrative Expenses, and Free Cash Flow should be considered in addition to, not as substitutes for, or in isolation from, measures prepared in accordance with GAAP.
Key Business Metrics
In addition, Toast also uses the following key business metrics to help it evaluate its business, identify trends affecting its business, formulate business plans, and make strategic decisions:
-
Gross Payment Volume (“GPV”) is defined as the sum of total dollars processed through the Toast payments platform across Toast Processing Locations in a given period. GPV is a key measure of the scale of Toast’s platform, which in turn drives our financial performance. As Toast customers generate more sales and therefore more GPV, Toast generally sees higher financial technology solutions revenue.
-
Annualized Recurring Run-Rate (“ARR”) is defined as a key operational measure of the scale of Toast’s subscription and payment processing services for both new and existing customers. To calculate ARR, Toast first calculates recurring run-rate on a monthly basis. Monthly Recurring Run-Rate, or MRR, is measured on the final day of each month as the sum of (i) Toast’s monthly billings of subscription services fees, which we refer to as the subscription component of MRR, and (ii) Toast’s in-month adjusted payments services fees, exclusive of estimated transaction-based costs, which we refer to as the payments component of MRR. MRR does not include fees derived from Toast Capital or related costs. MRR is also not burdened by the impact of SaaS credits offered. The MRR calculation includes all locations on the Toast platform and locations on legacy solutions, which have a negligible impact on ARR.
ARR is determined by taking the sum of (i) twelve times the subscription component of MRR and (ii) four times the trailing-three-month cumulative payments component of MRR. Toast believes this approach provides an indication of its scale, while also controlling for short-term fluctuations in payments volume. ARR may decline or fluctuate as a result of a number of factors, including customers’ satisfaction with the Toast platform, pricing, competitive offerings, economic conditions, or overall changes in Toast’s customers’ and their guests’ spending levels. ARR is an operational measure, does not reflect Toast’s revenue or gross profit determined in accordance with GAAP, and should be viewed independently of, and not combined with or substituted for, Toast’s revenue, gross profit, and other financial information determined in accordance with GAAP. Further, ARR is not a forecast of future revenue and investors should not place undue reliance on ARR as an indicator of Toast’s future or expected results.
Locations
We define a live location, or Location, as a unique location that has used Toast Point of Sale to record transaction volumes above a minimum threshold, and has not been marked as a churned location as of the date of determination. A Location can use Toast payment services, which we refer to as a Toast Processing Location, or for select enterprise customers, not use Toast’s payment services, which we refer to as a Non-Toast Processing Location. Customers of legacy solutions provided by companies that we have acquired, that do not use Toast Point of Sale, are not included in our Location count.
Summary of Key Business Metrics and Non-GAAP Results (unaudited) |
|||||||||||||||||
|
Three Months Ended June 30, |
|
|
|
Six Months Ended June 30, |
|
|
||||||||||
(dollars in billions) |
2024 |
|
2023 |
|
% Growth |
|
2024 |
|
2023 |
|
% Growth |
||||||
Gross Payment Volume (GPV) |
$ |
40.5 |
|
$ |
32.1 |
|
26 |
% |
|
$ |
75.2 |
|
$ |
58.8 |
|
28 |
% |
|
As of June 30, |
|
|
|||||
(dollars in millions) |
2024 |
|
2023 |
|
% Growth |
|||
Payments Annualized Recurring Run-Rate |
$ |
743 |
|
$ |
598 |
|
24 |
% |
Subscription Annualized Recurring Run-Rate |
|
730 |
|
|
542 |
|
35 |
% |
Total Annualized Recurring Run-Rate (ARR) |
$ |
1,473 |
|
$ |
1,140 |
|
29 |
% |
Adjusted EBITDA |
Three Months Ended June 30, |
|
Six Months Ended June 30, |
||||||||||||
(dollars in millions) |
|
2024 |
|
|
|
2023 |
|
|
|
2024 |
|
|
|
2023 |
|
Net income (loss) |
$ |
14 |
|
|
$ |
(98 |
) |
|
$ |
(69 |
) |
|
$ |
(179 |
) |
Stock-based compensation expense and related payroll tax |
|
70 |
|
|
|
74 |
|
|
|
130 |
|
|
|
141 |
|
Depreciation and amortization |
|
11 |
|
|
|
8 |
|
|
|
20 |
|
|
|
14 |
|
Interest income, net |
|
(10 |
) |
|
|
(9 |
) |
|
|
(20 |
) |
|
|
(17 |
) |
Change in fair value of warrant liability |
|
1 |
|
|
|
26 |
|
|
|
37 |
|
|
|
23 |
|
Termination of leases |
|
2 |
|
|
|
13 |
|
|
|
2 |
|
|
|
13 |
|
Restructuring and restructuring-related expenses1 |
|
4 |
|
|
|
— |
|
|
|
46 |
|
|
|
— |
|
Acquisition expenses |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
1 |
|
Income tax expense |
|
— |
|
|
|
1 |
|
|
|
2 |
|
|
|
1 |
|
Adjusted EBITDA |
$ |
92 |
|
|
$ |
15 |
|
|
$ |
148 |
|
|
$ |
(3 |
) |
1 Restructuring and restructuring-related expenses for the three and six months ended June 30, 2024 include |
|||||||||||||||
Non-GAAP Subscription Services and Financial Technology Solutions Gross Profit (Non-GAAP) |
Three Months Ended June 30, |
|
Six Months Ended June 30, |
|||||||||
(dollars in millions) |
2024 |
|
2023 |
|
2024 |
|
2023 |
|||||
Gross profit (GAAP): |
|
|
|
|
|
|
|
|||||
Subscription services |
$ |
113 |
|
$ |
82 |
|
$ |
215 |
|
$ |
152 |
|
Financial technology solutions |
|
217 |
|
|
177 |
|
|
408 |
|
|
327 |
|
Adjustments: |
|
|
|
|
|
|
|
|||||
Stock-based compensation expense and related payroll tax |
|
6 |
|
|
4 |
|
|
10 |
|
|
9 |
|
Depreciation and amortization |
|
8 |
|
|
4 |
|
|
14 |
|
|
7 |
|
Non-GAAP Subscription Services and Financial Technology Solutions Gross Profit (Non-GAAP) |
$ |
344 |
|
$ |
267 |
|
$ |
647 |
|
$ |
495 |
|
Non-GAAP Costs of Revenue |
Three Months Ended June 30, |
|
Six Months Ended June 30, |
||||||||||||
(dollars in millions) |
|
2024 |
|
|
|
2023 |
|
|
|
2024 |
|
|
|
2023 |
|
Costs of revenue |
$ |
956 |
|
|
$ |
770 |
|
|
$ |
1,781 |
|
|
$ |
1,415 |
|
Stock-based compensation expense and related payroll tax |
|
(12 |
) |
|
|
(11 |
) |
|
|
(22 |
) |
|
|
(21 |
) |
Depreciation and amortization |
|
(9 |
) |
|
|
(6 |
) |
|
|
(17 |
) |
|
|
(11 |
) |
Non-GAAP Costs of Revenue |
$ |
935 |
|
|
$ |
753 |
|
|
$ |
1,742 |
|
|
$ |
1,383 |
|
Non-GAAP Gross Profit |
Three Months Ended June 30, |
|
Six Months Ended June 30, |
||||||||
(dollars in millions) |
2024 |
|
2023 |
|
2024 |
|
2023 |
||||
Gross profit |
$ |
286 |
|
$ |
208 |
|
$ |
537 |
|
$ |
382 |
Stock-based compensation expense and related payroll tax |
|
12 |
|
|
11 |
|
|
22 |
|
|
21 |
Depreciation and amortization |
|
9 |
|
|
6 |
|
|
17 |
|
|
11 |
Non-GAAP gross profit |
$ |
307 |
|
$ |
225 |
|
$ |
576 |
|
$ |
414 |
Non-GAAP Subscription Services Gross Profit |
Three Months Ended June 30, |
|
Six Months Ended June 30, |
||||||||
(dollars in millions) |
2024 |
|
2023 |
|
2024 |
|
2023 |
||||
Subscription services gross profit |
$ |
113 |
|
$ |
82 |
|
$ |
215 |
|
$ |
152 |
Stock-based compensation expense and related payroll tax |
|
6 |
|
|
4 |
|
|
10 |
|
|
9 |
Depreciation and amortization |
|
8 |
|
|
4 |
|
|
14 |
|
|
7 |
Non-GAAP subscription services gross profit |
$ |
127 |
|
$ |
90 |
|
$ |
239 |
|
$ |
168 |
Non-GAAP Financial Technology Solutions Gross Profit |
Three Months Ended June 30, |
|
Six Months Ended June 30, |
||||||||
(dollars in millions) |
2024 |
|
2023 |
|
2024 |
|
2023 |
||||
Financial technology solutions gross profit |
$ |
217 |
|
$ |
177 |
|
$ |
408 |
|
$ |
327 |
Stock-based compensation expense and related payroll tax |
|
— |
|
|
— |
|
|
— |
|
|
— |
Depreciation and amortization |
|
— |
|
|
— |
|
|
— |
|
|
— |
Non-GAAP financial technology solutions gross profit |
$ |
217 |
|
$ |
177 |
|
$ |
408 |
|
$ |
327 |
Non-GAAP Hardware and Professional Services Gross Profit |
Three Months Ended June 30, |
|
Six Months Ended June 30, |
||||||||||||
(dollars in millions) |
|
2024 |
|
|
|
2023 |
|
|
|
2024 |
|
|
|
2023 |
|
Hardware and professional services gross profit |
$ |
(43 |
) |
|
$ |
(50 |
) |
|
$ |
(84 |
) |
|
$ |
(95 |
) |
Stock-based compensation expense and related payroll tax |
|
6 |
|
|
|
7 |
|
|
|
11 |
|
|
|
13 |
|
Depreciation and amortization |
|
1 |
|
|
|
1 |
|
|
|
1 |
|
|
|
1 |
|
Non-GAAP hardware and professional services gross profit |
$ |
(36 |
) |
|
$ |
(42 |
) |
|
$ |
(72 |
) |
|
$ |
(81 |
) |
Non-GAAP Non-Payments Financial Technology Solutions Gross Profit |
Three Months Ended June 30, |
|
Six Months Ended June 30, |
||||||||||||
(dollars in millions) |
|
2024 |
|
|
|
2023 |
|
|
|
2024 |
|
|
|
2023 |
|
Financial technology solutions gross profit |
$ |
217 |
|
|
$ |
177 |
|
|
$ |
408 |
|
|
$ |
327 |
|
Payments financial technology solutions gross profit |
|
(183 |
) |
|
|
(145 |
) |
|
|
(340 |
) |
|
|
(270 |
) |
Non-GAAP non-payments financial technology solutions gross profit |
$ |
34 |
|
|
$ |
32 |
|
|
$ |
68 |
|
|
$ |
57 |
|
Non-GAAP Sales and Marketing Expenses |
Three Months Ended June 30, |
|
Six Months Ended June 30, |
||||||||||||
(dollars in millions) |
|
2024 |
|
|
|
2023 |
|
|
|
2024 |
|
|
|
2023 |
|
Sales and marketing expenses |
$ |
115 |
|
|
$ |
100 |
|
|
$ |
222 |
|
|
$ |
199 |
|
Stock-based compensation expense and related payroll tax |
|
(17 |
) |
|
|
(15 |
) |
|
|
(29 |
) |
|
|
(30 |
) |
Depreciation and amortization |
|
(1 |
) |
|
|
(1 |
) |
|
|
(2 |
) |
|
|
(2 |
) |
Non-GAAP sales and marketing expenses |
$ |
97 |
|
|
$ |
84 |
|
|
$ |
191 |
|
|
$ |
167 |
|
Non-GAAP Research and Development Expenses |
Three Months Ended June 30, |
|
Six Months Ended June 30, |
||||||||||||
(dollars in millions) |
|
2024 |
|
|
|
2023 |
|
|
|
2024 |
|
|
|
2023 |
|
Research and development expenses |
$ |
87 |
|
|
$ |
92 |
|
|
$ |
169 |
|
|
$ |
177 |
|
Stock-based compensation expense and related payroll tax |
|
(23 |
) |
|
|
(25 |
) |
|
|
(43 |
) |
|
|
(48 |
) |
Depreciation and amortization |
|
(1 |
) |
|
|
(1 |
) |
|
|
(1 |
) |
|
|
(1 |
) |
Non-GAAP research and development expenses |
$ |
63 |
|
|
$ |
66 |
|
|
$ |
125 |
|
|
$ |
128 |
|
Non-GAAP General and Administrative Expenses |
Three Months Ended June 30, |
|
Six Months Ended June 30, |
||||||||||||
(dollars in millions) |
|
2024 |
|
|
|
2023 |
|
|
|
2024 |
|
|
|
2023 |
|
General and administrative expenses |
$ |
75 |
|
|
$ |
96 |
|
|
$ |
149 |
|
|
$ |
179 |
|
Stock-based compensation expense and related payroll tax |
|
(18 |
) |
|
|
(22 |
) |
|
|
(36 |
) |
|
|
(42 |
) |
Depreciation and amortization |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(1 |
) |
Termination of leases |
|
(2 |
) |
|
|
(13 |
) |
|
|
(2 |
) |
|
|
(13 |
) |
Acquisition expenses |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(1 |
) |
Non-GAAP general and administrative expenses |
$ |
55 |
|
|
$ |
61 |
|
|
$ |
111 |
|
|
$ |
122 |
|
Free Cash Flow |
Three Months Ended June 30, |
|
Six Months Ended June 30, |
||||||||||||
(dollars in millions) |
|
2024 |
|
|
|
2023 |
|
|
|
2024 |
|
|
|
2023 |
|
Net cash provided by (used in) operating activities |
$ |
124 |
|
|
$ |
50 |
|
|
$ |
104 |
|
|
$ |
(5 |
) |
Capital expenditures |
|
(16 |
) |
|
|
(11 |
) |
|
|
(29 |
) |
|
|
(21 |
) |
Free cash flow |
$ |
108 |
|
|
$ |
39 |
|
|
$ |
75 |
|
|
$ |
(26 |
) |
Sums may not equal totals due to rounding. |
|||||||||||||||
TOST-FIN
View source version on businesswire.com: https://www.businesswire.com/news/home/20240806767766/en/
Media: media@toasttab.com
Investors: IR@toasttab.com
Source: Toast, Inc.
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