Toast Announces Third Quarter 2021 Financial Results
Toast (NYSE: TOST) reported impressive third-quarter results for 2021, with revenue of $486.4 million, up 105% year-over-year. The annualized recurring run-rate (ARR) grew by 77% to $543.8 million, and gross payment volume (GPV) rose 123% to $16.5 billion. Despite this growth, the company posted a net loss of $252.5 million, compared to a loss of $62.6 million in Q3 2020. For Q4 2021, Toast projects revenue between $465 million and $495 million and an adjusted EBITDA loss of $(50) million to $(40) million.
- Revenue increased 105% year-over-year to $486.4 million.
- ARR grew 77% year-over-year to $543.8 million.
- GPV increased 123% year-over-year to $16.5 billion.
- Gross profit rose 72% year-over-year to $83.3 million.
- Net loss widened to $252.5 million from $62.6 million year-over-year.
- Adjusted EBITDA loss increased to $(9.7) million from $(0.3) million year-over-year.
- Free cash flow turned negative at $(21.1) million compared to $0.4 million in Q3 2020.
Third quarter revenue grew
Annualized recurring run-rate (ARR) as of
Third quarter gross payment volume (GPV) grew
“In the third quarter, we delivered strong results across the board,” said
Financial Highlights for the Third Quarter of 2021
-
Revenue for the third quarter of 2021 was
, an increase of$486.4 million 105% from the third quarter of 2020. -
ARR as of
September 30, 2021 was , an increase of$543.8 million 77% as compared toSeptember 30, 2020 . -
GPV for the third quarter of 2021 was
, an increase of$16.5 billion 123% from the third quarter of 2020. -
Gross profit for the third quarter of 2021 was
, an increase of$83.3 million 72% from the third quarter of 2020. -
Non-GAAP gross profit for the third quarter of 2021 was
, an increase of$88.5 million 75% from the third quarter of 2020. -
Net loss for the third quarter of 2021 was
, as compared to$252.5 million in the third quarter of 2020.$62.6 million -
Adjusted EBITDA for the third quarter of 2021 was
, as compared to Adjusted EBITDA of$(9.7) million in the third quarter of 2020.$(0.3) million -
Net cash (used in) provided by operating activities for the third quarter of 2021 was
, as compared to$(17.2) million for the third quarter of 2020.$11.2 million -
Free Cash Flow for the third quarter of 2021 was
, as compared to Free Cash Flow of$(21.1) million for the third quarter of 2020.$0.4 million
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.
Outlook
For the fourth quarter ending
-
Revenue in the range of
to$465 million $495 million -
Adjusted EBITDA in the range of
to$(50) million $(40) million
For the full year ending
-
Revenue in the range of
to$1,655 million $1,685 million -
Adjusted EBITDA in the range of
to$(46) million $(36) 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” below.
Conference Call Information
Toast will host a live video webcast at
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 the all-in-one platform built for restaurants of all sizes. Toast provides a single 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, operations, digital ordering and delivery, marketing and loyalty, and team management. By serving as the restaurant operating system across dine-in, takeout, and delivery channels, Toast helps restaurants streamline operations, increase revenue and deliver amazing guest experiences. For more information, visit www.toasttab.com.
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 fourth fiscal quarter and full year of 2021; statements about future operating results; the expectations of demand for Toast’s products and growth of its business; the growth rates in the markets in which Toast compete; Toast’s investments in technology and infrastructure; Toast’s ability to deliver innovative solutions; Toast’s ability to attract and retain 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
CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS (unaudited) (in thousands, except share and per share amounts) |
|||||||||||||||
|
Three Months Ended |
|
Nine Months Ended |
||||||||||||
|
2021 |
|
2020 |
|
2021 |
|
2020 |
||||||||
Revenue: |
|
|
|
|
|
|
|
||||||||
Subscription services |
$ |
45,803 |
|
|
$ |
27,406 |
|
|
$ |
113,844 |
|
|
$ |
72,193 |
|
Financial technology solutions |
|
404,224 |
|
|
|
188,195 |
|
|
|
983,699 |
|
|
|
450,265 |
|
Hardware |
|
31,051 |
|
|
|
18,148 |
|
|
|
80,005 |
|
|
|
48,335 |
|
Professional services |
|
5,301 |
|
|
|
3,008 |
|
|
|
12,579 |
|
|
|
9,806 |
|
Total revenue |
|
486,379 |
|
|
|
236,757 |
|
|
|
1,190,127 |
|
|
|
580,599 |
|
Costs of revenue: |
|
|
|
|
|
|
|
||||||||
Subscription services |
|
18,016 |
|
|
|
10,388 |
|
|
|
41,044 |
|
|
|
29,205 |
|
Financial technology solutions |
|
327,235 |
|
|
|
145,945 |
|
|
|
779,111 |
|
|
|
358,402 |
|
Hardware |
|
42,109 |
|
|
|
21,914 |
|
|
|
93,521 |
|
|
|
63,336 |
|
Professional services |
|
14,585 |
|
|
|
9,282 |
|
|
|
35,276 |
|
|
|
33,655 |
|
Amortization of acquired technology and customer assets |
|
1,180 |
|
|
|
908 |
|
|
|
3,147 |
|
|
|
2,695 |
|
Total costs of revenue |
|
403,125 |
|
|
|
188,437 |
|
|
|
952,099 |
|
|
|
487,293 |
|
Gross profit |
|
83,254 |
|
|
|
48,320 |
|
|
|
238,028 |
|
|
|
93,306 |
|
Operating expenses: |
|
|
|
|
|
|
|
||||||||
Sales and marketing |
|
56,622 |
|
|
|
32,216 |
|
|
|
130,480 |
|
|
|
104,326 |
|
Research and development |
|
39,700 |
|
|
|
34,274 |
|
|
|
112,978 |
|
|
|
78,658 |
|
General and administrative |
|
40,633 |
|
|
|
20,481 |
|
|
|
105,095 |
|
|
|
73,558 |
|
Total operating expenses |
|
136,955 |
|
|
|
86,971 |
|
|
|
348,553 |
|
|
|
256,542 |
|
Loss from operations |
|
(53,701 |
) |
|
|
(38,651 |
) |
|
|
(110,525 |
) |
|
|
(163,236 |
) |
Other income (expense): |
|
|
|
|
|
|
|
||||||||
Interest income |
|
8 |
|
|
|
137 |
|
|
|
61 |
|
|
|
819 |
|
Interest expense |
|
(247 |
) |
|
|
(5,661 |
) |
|
|
(12,403 |
) |
|
|
(6,846 |
) |
Change in fair value of warrant liabilities |
|
(198,389 |
) |
|
|
(202 |
) |
|
|
(214,881 |
) |
|
|
60 |
|
Change in fair value of derivative liability |
|
— |
|
|
|
(18,208 |
) |
|
|
(103,281 |
) |
|
|
(18,208 |
) |
Loss on debt extinguishment |
|
— |
|
|
|
— |
|
|
|
(49,783 |
) |
|
|
— |
|
Other income (expense), net |
|
(39 |
) |
|
|
104 |
|
|
|
42 |
|
|
|
325 |
|
Loss before (provision for) benefit from income taxes |
|
(252,368 |
) |
|
|
(62,481 |
) |
|
|
(490,770 |
) |
|
|
(187,086 |
) |
(Provision for) benefit from income taxes |
|
(129 |
) |
|
|
(127 |
) |
|
|
3,623 |
|
|
|
(69 |
) |
Net loss |
$ |
(252,497 |
) |
|
$ |
(62,608 |
) |
|
$ |
(487,147 |
) |
|
$ |
(187,155 |
) |
Net loss per share attributable to common stockholders, basic and diluted |
$ |
(1.05 |
) |
|
$ |
(0.31 |
) |
|
$ |
(2.22 |
) |
|
$ |
(0.94 |
) |
Weighted average shares used in computing net loss per share, basic and diluted |
|
239,358,805 |
|
|
|
200,579,529 |
|
|
|
219,746,454 |
|
|
|
199,245,332 |
|
|
|
|
|
|
|
|
|
||||||||
Net loss |
$ |
(252,497 |
) |
|
$ |
(62,608 |
) |
|
$ |
(487,147 |
) |
|
$ |
(187,155 |
) |
Other comprehensive income (loss): |
|
|
|
|
|
|
|
||||||||
Foreign currency translation |
|
(69 |
) |
|
|
(24 |
) |
|
|
(183 |
) |
|
|
5 |
|
Comprehensive loss |
$ |
(252,566 |
) |
|
$ |
(62,632 |
) |
|
$ |
(487,330 |
) |
|
$ |
(187,150 |
) |
CONSOLIDATED BALANCE SHEETS (unaudited) (in thousands, except share and per share amounts) |
|||||||
|
|
|
|
||||
Assets: |
|
|
|
||||
Current assets: |
|
|
|
||||
Cash and cash equivalents |
$ |
1,301,619 |
|
|
$ |
581,824 |
|
Accounts receivable, net of allowance for doubtful accounts of |
|
52,730 |
|
|
|
32,633 |
|
Merchant cash advances and loans receivable, net of allowance for uncollectible loans of |
|
409 |
|
|
|
872 |
|
Inventories |
|
38,665 |
|
|
|
19,330 |
|
Costs capitalized to obtain revenue contracts, net |
|
23,931 |
|
|
|
16,794 |
|
Prepaid expenses and other current assets |
|
79,561 |
|
|
|
21,611 |
|
Total current assets |
|
1,496,915 |
|
|
|
673,064 |
|
Property and equipment, net |
|
42,381 |
|
|
|
44,111 |
|
Intangible assets |
|
17,188 |
|
|
|
6,835 |
|
|
|
74,738 |
|
|
|
35,887 |
|
Restricted cash |
|
2,694 |
|
|
|
1,214 |
|
Security deposits |
|
806 |
|
|
|
1,633 |
|
Non-current costs capitalized to obtain revenue contracts, net |
|
18,755 |
|
|
|
12,612 |
|
Other non-current assets |
|
3,776 |
|
|
|
600 |
|
Total non-current assets |
|
160,338 |
|
|
|
102,892 |
|
Total assets |
$ |
1,657,253 |
|
|
$ |
775,956 |
|
Liabilities, Convertible Preferred Stock and Stockholders’ Equity (Deficit): |
|
|
|
||||
Current liabilities: |
|
|
|
||||
Accounts payable |
$ |
33,696 |
|
|
$ |
30,554 |
|
Current portion of deferred revenue |
|
46,865 |
|
|
|
42,680 |
|
Accrued expenses and other current liabilities |
|
206,218 |
|
|
|
63,172 |
|
Total current liabilities |
|
286,779 |
|
|
|
136,406 |
|
Long-term debt, net of discount |
|
— |
|
|
|
171,709 |
|
Derivative liabilities |
|
— |
|
|
|
37,443 |
|
Warrants to purchase preferred stock |
|
— |
|
|
|
11,405 |
|
Warrants to purchase common stock |
|
308,195 |
|
|
|
— |
|
Deferred revenue, net of current portion |
|
12,832 |
|
|
|
15,533 |
|
Deferred rent, net of current portion |
|
16,106 |
|
|
|
18,536 |
|
Other long-term liabilities |
|
23,867 |
|
|
|
7,007 |
|
Total long-term liabilities |
|
361,000 |
|
|
|
261,633 |
|
Total liabilities |
|
647,779 |
|
|
|
398,039 |
|
Commitments and contingencies |
|
|
|
||||
Convertible preferred stock, |
|
— |
|
|
|
848,893 |
|
Stockholders’ Equity (Deficit): |
|
|
|||||
Preferred stock- par value |
|
— |
|
|
|
— |
|
Common stock, |
|
— |
|
|
|
— |
|
Class A common stock, |
|
— |
|
|
|
— |
|
Class B common stock, |
|
— |
|
|
|
— |
|
|
|
(665 |
) |
|
|
(665 |
) |
Accumulated other comprehensive income |
|
45 |
|
|
|
228 |
|
Additional paid-in capital |
|
2,113,107 |
|
|
|
145,327 |
|
Accumulated deficit |
|
(1,103,013 |
) |
|
|
(615,866 |
) |
Total stockholders’ equity (deficit) |
|
1,009,474 |
|
|
|
(470,976 |
) |
Total liabilities, convertible preferred stock and stockholders’ equity (deficit) |
$ |
1,657,253 |
|
|
$ |
775,956 |
|
CONSOLIDATED STATEMENTS OF CASH FLOWS (unaudited) (in thousands) |
|||||||
|
Nine Months Ended |
||||||
|
|
2021 |
|
|
|
2020 |
|
Cash flows from operating activities: |
|
|
|
||||
Net loss |
$ |
(487,147 |
) |
|
$ |
(187,155 |
) |
Adjustments to reconcile net loss to net cash provided by (used in) operating activities: |
|
|
|
||||
Depreciation and amortization |
|
15,617 |
|
|
|
9,498 |
|
Stock-based compensation |
|
95,210 |
|
|
|
58,357 |
|
Amortization of costs capitalized to obtain revenue contracts |
|
17,596 |
|
|
|
10,818 |
|
Change in fair value of derivative liability |
|
103,281 |
|
|
|
18,208 |
|
Change in fair value of warrant liabilities |
|
214,881 |
|
|
|
(60 |
) |
Change in deferred income taxes |
|
(3,920 |
) |
|
|
— |
|
Loss on debt extinguishment |
|
49,783 |
|
|
|
— |
|
Non-cash interest on convertible notes |
|
11,771 |
|
|
|
6,404 |
|
Other |
|
305 |
|
|
|
256 |
|
Changes in operating assets and liabilities: |
|
|
|
||||
Account receivable, net |
|
(20,083 |
) |
|
|
(8,425 |
) |
Factor receivable, net |
|
153 |
|
|
|
2,568 |
|
Merchant cash advances repaid |
|
537 |
|
|
|
8,233 |
|
Prepaid expenses and other current assets |
|
(31,867 |
) |
|
|
8,395 |
|
Costs capitalized to obtain revenue contracts, net |
|
(30,876 |
) |
|
|
(17,580 |
) |
Inventories |
|
(19,336 |
) |
|
|
698 |
|
Accounts payable |
|
8,207 |
|
|
|
(6,289 |
) |
Accrued expenses and other current liabilities |
|
106,306 |
|
|
|
8,276 |
|
Deferred revenue |
|
1,484 |
|
|
|
(2,268 |
) |
Other assets and liabilities |
|
2,068 |
|
|
|
3,436 |
|
Net cash provided by (used in) operating activities |
|
33,970 |
|
|
|
(86,630 |
) |
Cash flows from investing activities: |
|
|
|
||||
Cash paid for acquisition, net of cash acquired |
|
(26,142 |
) |
|
|
— |
|
Capitalized software |
|
(5,712 |
) |
|
|
(6,479 |
) |
Purchases of property and equipment |
|
(10,570 |
) |
|
|
(35,385 |
) |
Other |
|
— |
|
|
|
233 |
|
Net cash used in investing activities |
|
(42,424 |
) |
|
|
(41,631 |
) |
Cash flows from financing activities: |
|
|
|
||||
Proceeds from issuance of Class A common stock upon initial public offering, net of underwriter discounts |
|
950,360 |
|
|
|
— |
|
Payment of deferred offering costs |
|
(4,044 |
) |
|
|
— |
|
Repayments of secured borrowings |
|
— |
|
|
|
(8,544 |
) |
Extinguishment of convertible notes |
|
(244,528 |
) |
|
|
— |
|
Change in customer funds obligations, net |
|
26,002 |
|
|
|
6,138 |
|
Proceeds from issuance of long-term debt |
|
— |
|
|
|
194,850 |
|
Proceeds from exercise of stock options |
|
17,727 |
|
|
|
1,158 |
|
Proceeds from issuance of Series F preferred stock |
|
— |
|
|
|
402,368 |
|
Proceeds from exercise of restricted stock |
|
10,397 |
|
|
|
265 |
|
Repurchase of restricted stock |
|
— |
|
|
|
(155 |
) |
Repurchase of common stock |
|
— |
|
|
|
(275 |
) |
Net cash provided by financing activities |
|
755,914 |
|
|
|
595,805 |
|
Net increase in cash, cash equivalents, cash held on behalf of customers and restricted cash |
|
747,460 |
|
|
|
467,544 |
|
Effect of exchange rate changes on cash and cash equivalents and restricted cash |
|
(183 |
) |
|
|
5 |
|
Cash, cash equivalents, cash held on behalf of customers and restricted cash at beginning of period |
|
593,676 |
|
|
|
159,389 |
|
Cash, cash equivalents, cash held on behalf of customers and restricted cash at end of period |
$ |
1,340,953 |
|
|
$ |
626,938 |
|
Reconciliation of cash, cash equivalents, cash held on behalf of customers and restricted cash |
|
|
|
||||
Cash and cash equivalents |
$ |
1,301,619 |
|
|
$ |
611,907 |
|
Cash held on behalf of customers |
|
36,640 |
|
|
|
12,853 |
|
Restricted cash |
|
2,694 |
|
|
|
2,178 |
|
Total cash, cash equivalents, cash held on behalf of customers and restricted cash |
$ |
1,340,953 |
|
|
$ |
626,938 |
|
Supplemental disclosures of cash flow information |
|
|
|
||||
Cash paid for interest |
$ |
13,226 |
|
|
$ |
— |
|
Non-cash items in investing and financing activities |
|
|
|
||||
Purchase of property and equipment included in accounts payable and accrued expenses |
$ |
148 |
|
|
$ |
8,868 |
|
Contingent consideration included in purchase price |
|
1,876 |
|
|
|
— |
|
Deferred payments included in purchase price |
|
5,357 |
|
|
|
— |
|
Common stock issued in acquisition |
|
14,857 |
|
|
|
— |
|
Conversion of convertible preferred stock into Class B common stock upon initial public offering |
|
848,893 |
|
|
|
— |
|
Issuance of Class B common stock upon exercise of common stock warrants |
|
43,297 |
|
|
|
— |
|
Issuance of common stock warrants upon debt extinguishment |
|
125,111 |
|
|
|
— |
|
Deferred offering costs included in accounts payable and accrued expenses |
|
2,298 |
|
|
|
— |
|
Stock-based compensation included in capitalized software |
|
545 |
|
|
|
— |
|
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, interest expense, other income (expense) net, acquisition expenses, fair value adjustments on warrant and derivative liabilities, expenses related to COVID-19 pandemic initiatives resulting from a reduction of workforce in 2020 and early termination of leases, loss on debt extinguishment, and income taxes.
- Non-GAAP Costs of Revenue are defined as costs of revenue excluding stock-based compensation expense.
- Non-GAAP Gross Profit is defined as gross profit excluding stock-based compensation expense.
- Non-GAAP Sales and Marketing Expenses are defined as sales and marketing expenses excluding stock-based compensation expense.
-
Non-GAAP Research and Development Expenses are defined as research and development expenses excluding stock-based compensation expense.
- Non-GAAP General and Administrative Expenses are defined as general and administrative expenses excluding stock-based compensation 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.
Adjusted EBITDA, Non-GAAP Costs of Revenue, Non-GAAP Gross Profit, Non-GAAP Selling and Marketing Expenses,
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 comprehensive loss and consolidated statements of cash flows. Thus, our Adjusted EBITDA, Non-GAAP Costs of Revenue, Non-GAAP Gross Profit, Non-GAAP Sales and Marketing Expenses,
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 all restaurant locations in a given period. GPV is a key measure of the scale of Toast’s platform, which in turn drives its 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 (“MRR”) is measured on the final day of each month for all restaurant locations live on the Toast platform as the sum of (i) Toast’s monthly subscription services fees, which is referred to as the subscription component of MRR, and (ii) Toast’s in-month adjusted payments services fees, exclusive of estimated transaction-based costs, which is referred to as the payments component of MRR. MRR does not include fees derived from
Toast Capital or related costs. 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 its 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.
|
Three Months Ended |
|
Nine Months Ended |
|||||||||||||||
(dollars in billions) |
2021 |
2020 |
% Growth |
2021 |
2020 |
% Growth |
||||||||||||
Gross Payment Volume (GPV) |
$ |
16.5 |
$ |
7.4 |
123 |
% |
$ |
39.9 |
$ |
17.8 |
124 |
% |
||||||
|
As of |
|
||||||||||||||||
(dollars in millions) |
|
2021 |
2020 |
% Growth |
||||||||||||||
Annualized Recurring Run-Rate |
$ |
543.8 |
$ |
308.1 |
77 |
% |
Reconciliation from Non-GAAP to GAAP Results (unaudited) (in thousands) |
|||||||||||||||
Adjusted EBITDA |
Three Months Ended
|
|
Nine Months Ended
|
||||||||||||
(dollars in thousands) |
|
2021 |
|
|
|
2020 |
|
|
|
2021 |
|
|
|
2020 |
|
|
|
|
|
|
|
|
|
||||||||
Net loss |
$ |
(252,497 |
) |
|
$ |
(62,608 |
) |
|
$ |
(487,147 |
) |
|
$ |
(187,155 |
) |
Stock-based compensation expense and related payroll tax |
|
36,372 |
|
|
|
36,201 |
|
|
|
97,359 |
|
|
|
58,357 |
|
Depreciation and amortization |
|
6,673 |
|
|
|
3,118 |
|
|
|
15,617 |
|
|
|
9,498 |
|
Interest income |
|
(8 |
) |
|
|
(137 |
) |
|
|
(61 |
) |
|
|
(819 |
) |
Interest expense |
|
247 |
|
|
|
5,661 |
|
|
|
12,403 |
|
|
|
6,846 |
|
Other (income) expense, net |
|
39 |
|
|
|
(104 |
) |
|
|
(42 |
) |
|
|
(325 |
) |
Acquisition expenses |
|
— |
|
|
|
— |
|
|
|
1,113 |
|
|
|
— |
|
Change in fair value of warrant liability |
|
198,389 |
|
|
|
202 |
|
|
|
214,881 |
|
|
|
(60 |
) |
Change in fair value of derivative liability |
|
— |
|
|
|
18,208 |
|
|
|
103,281 |
|
|
|
18,208 |
|
Reduction of workforce |
|
— |
|
|
|
154 |
|
|
|
— |
|
|
|
10,127 |
|
Termination of leases |
|
922 |
|
|
|
(1,092 |
) |
|
|
922 |
|
|
|
(1,092 |
) |
Loss on debt extinguishment |
|
— |
|
|
|
— |
|
|
|
49,783 |
|
|
|
— |
|
Provision for (benefit from) income taxes |
|
129 |
|
|
|
127 |
|
|
|
(3,623 |
) |
|
|
69 |
|
Adjusted EBITDA |
$ |
(9,734 |
) |
|
$ |
(270 |
) |
|
$ |
4,486 |
|
|
$ |
(86,346 |
) |
|
|
|
|||||||||||||
|
|
|
|||||||||||||
Non-GAAP Costs of Revenue |
Three Months Ended
|
|
Nine Months Ended
|
||||||||||||
(dollars in thousands) |
|
2021 |
|
|
|
2020 |
|
|
|
2021 |
|
|
|
2020 |
|
|
|
|
|
|
|
|
|
||||||||
Costs of Revenue |
$ |
403,125 |
|
|
$ |
188,437 |
|
|
$ |
952,099 |
|
|
$ |
487,293 |
|
Stock-based compensation expense |
|
5,270 |
|
|
|
2,250 |
|
|
|
6,523 |
|
|
|
3,169 |
|
Non-GAAP Costs of Revenue |
$ |
397,855 |
|
|
$ |
186,187 |
|
|
$ |
945,576 |
|
|
$ |
484,124 |
|
|
|
|
|||||||||||||
Non-GAAP Gross Profit |
Three Months Ended
|
|
Nine Months Ended
|
||||||||||||
(dollars in thousands) |
|
2021 |
|
|
|
2020 |
|
|
|
2021 |
|
|
|
2020 |
|
|
|
|
|
|
|
|
|
||||||||
Gross profit |
$ |
83,254 |
|
|
$ |
48,320 |
|
|
$ |
238,028 |
|
|
$ |
93,306 |
|
Stock-based compensation expense |
|
5,270 |
|
|
|
2,250 |
|
|
|
6,523 |
|
|
|
3,169 |
|
Non-GAAP gross profit |
$ |
88,524 |
|
|
$ |
50,570 |
|
|
$ |
244,551 |
|
|
$ |
96,475 |
|
|
|
|
|||||||||||||
Non-GAAP Sales & Marketing Expenses |
Three Months Ended
|
|
Nine Months Ended
|
||||||||||||
(dollars in thousands) |
|
2021 |
|
|
|
2020 |
|
|
|
2021 |
|
|
|
2020 |
|
|
|
|
|
|
|
|
|
||||||||
Sales and marketing expenses |
$ |
56,622 |
|
|
$ |
32,216 |
|
|
$ |
130,480 |
|
|
$ |
104,326 |
|
Stock-based compensation expense |
|
10,337 |
|
|
|
7,445 |
|
|
|
13,276 |
|
|
|
9,094 |
|
Non-GAAP sales and marketing expenses |
$ |
46,285 |
|
|
$ |
24,771 |
|
|
$ |
117,204 |
|
|
$ |
95,232 |
|
|
|
|
|||||||||||||
|
Three Months Ended
|
|
Nine Months Ended
|
||||||||||||
(dollars in thousands) |
|
2021 |
|
|
|
2020 |
|
|
|
2021 |
|
|
|
2020 |
|
|
|
|
|
|
|
|
|
||||||||
Research and development expenses |
$ |
39,700 |
|
|
$ |
34,274 |
|
|
$ |
112,978 |
|
|
$ |
78,658 |
|
Stock-based compensation expense |
|
8,627 |
|
|
|
17,422 |
|
|
|
35,138 |
|
|
|
19,622 |
|
Non-GAAP research and development expenses |
$ |
31,073 |
|
|
$ |
16,852 |
|
|
$ |
77,840 |
|
|
$ |
59,036 |
|
|
|
|
|||||||||||||
Non-GAAP General & Administrative Expenses |
Three Months Ended
|
|
Nine Months Ended
|
||||||||||||
(dollars in thousands) |
|
2021 |
|
|
|
2020 |
|
|
|
2021 |
|
|
|
2020 |
|
|
|
|
|
|
|
|
|
||||||||
General and administrative expenses |
$ |
40,633 |
|
|
$ |
20,481 |
|
|
$ |
105,095 |
|
|
$ |
73,558 |
|
Stock-based compensation expense |
|
12,118 |
|
|
|
9,084 |
|
|
|
42,284 |
|
|
|
26,472 |
|
Non-GAAP general and administrative expenses |
$ |
28,515 |
|
|
$ |
11,397 |
|
|
$ |
62,811 |
|
|
$ |
47,086 |
|
|
|
|
|||||||||||||
Free Cash Flow |
Three Months Ended
|
|
Nine Months Ended
|
||||||||||||
(dollars in thousands) |
|
2021 |
|
|
|
2020 |
|
|
|
2021 |
|
|
|
2020 |
|
|
|
|
|
|
|
|
|
||||||||
Net cash provided by (used in) operating activities |
$ |
(17,248 |
) |
|
$ |
11,189 |
|
|
$ |
33,970 |
|
|
$ |
(86,630 |
) |
Purchases of property and equipment |
|
(2,250 |
) |
|
|
(8,811 |
) |
|
|
(10,570 |
) |
|
|
(35,385 |
) |
Capitalized software |
|
(1,625 |
) |
|
|
(1,977 |
) |
|
|
(5,712 |
) |
|
|
(6,479 |
) |
Free Cash Flow |
$ |
(21,123 |
) |
|
$ |
401 |
|
|
$ |
17,688 |
|
|
$ |
(128,494 |
) |
TOST-FIN
View source version on businesswire.com: https://www.businesswire.com/news/home/20211109006409/en/
Media: media@toasttab.com
Investors: IR@toasttab.com
Source: Toast
FAQ
What were Toast's third quarter earnings for 2021?
What is Toast's projected revenue for Q4 2021?
What was the net loss for Toast in Q3 2021?
How did Toast's annualized recurring run-rate (ARR) change in Q3 2021?