Toast (TOST) came out with quarterly earnings of $0.07 per share, beating the Zacks Consensus Estimate of $0.01 per share. This compares to loss of $0.09 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 600%. A quarter ago, it was expected that this restaurant software provider would post a loss of $0.02 per share when it actually produced earnings of $0.02, delivering a surprise of 200%.Over the last four quarters, the company ...

Toast, Inc. (NYSE:TOST) Q3 2024 Earnings Conference Call November 7, 2024 5:00 PM ET Company Participants Michael Senno - SVP, Finance and Strategy, Treasury and IR Aman Narang - CEO and Co-founder Elena Gomez - CFO Conference Call Participants Josh Baer - Morgan Stanley Samad Samana - Jefferies Stephen Sheldon - William Blair Dominic Ball - Redburn Atlantic Timothy Chiodo - UBS Dan Dolev - Mizuho Conan Leon - Wells Fargo Will Nance - Goldman Sachs Nick Setyan - Wedbush Operator Good afternoon. My name is P ...

Revenue Growth - Gross Payment Volume (GPV) for the three months ended September 30, 2024, was $41.7 billion, a 24% increase compared to $33.7 billion in the same period in 2023[80] - Total revenue for the three months ended September 30, 2024, was $1,305 million, a 26% increase compared to $1,032 million in the same period in 2023[85] - Subscription services revenue for the three months ended September 30, 2024, was $189 million, a 44% increase compared to $131 million in the same period in 2023[85] - Financial technology solutions revenue for the three months ended September 30, 2024, was $1,067 million, a 25% increase compared to $856 million in the same period in 2023[85] - Subscription services revenue for the three months ended September 30, 2024 was $189 million, an increase of 44% compared to $131 million in the same period in 2023[104] - Financial technology solutions revenue for the three months ended September 30, 2024 was $1,067 million, an increase of 25% compared to $856 million in the same period in 2023[104] Cost and Expense Management - Total costs of revenue for the three months ended September 30, 2024, were $983 million, a 22% increase compared to $806 million in the same period in 2023[87] - Sales and marketing expenses for the three months ended September 30, 2024, were $119 million, a 19% increase compared to $100 million in the same period in 2023[90] - Research and development expenses for the three months ended September 30, 2024, were $89 million, a 2% increase compared to $87 million in the same period in 2023[91] - General and administrative expenses for the three months ended September 30, 2024, were $80 million, an 18% decrease compared to $98 million in the same period in 2023[92] Financial Performance Metrics - Annualized Recurring Run-Rate (ARR) as of September 30, 2024, was $1,554 million, a 28% increase compared to $1,218 million in the same period in 2023[80] - Adjusted EBITDA for the three months ended September 30, 2024 was $113 million, compared to $35 million in the same period in 2023, reflecting improved financial performance[101] - Non-GAAP subscription services and financial technology solutions gross profit for the three months ended September 30, 2024 was $378 million, compared to $280 million in the same period in 2023[105] Cash Flow and Liquidity - Free cash flow for the nine months ended September 30, 2024 was $172 million, compared to $12 million in the same period in 2023, reflecting improved cash flow trends[108] - Cash and cash equivalents and marketable securities as of September 30, 2024 were $1,272 million, an increase from $1,124 million as of December 31, 2023[109] - Net cash provided by operating activities for the nine months ended September 30, 2024 was $213 million, compared to $43 million in the same period in 2023[108] - Net cash provided by operating activities increased during the nine months ended September 30, 2024, driven by a lower net loss and increased non-cash adjustments, partially offset by cash severance charges and higher working capital usage[113] - Net cash used in investing activities decreased during the nine months ended September 30, 2024, primarily due to net cash inflows from marketable securities, partially offset by increased capital expenditures[113] - Net cash provided by financing activities decreased during the nine months ended September 30, 2024, driven by cash outflows related to Warrant Repurchase and share repurchases, partially offset by increased cash inflows from common stock issuance[113] - The company repurchased approximately 2 million shares of Class A common stock for an aggregate amount of $56 million during the nine months ended September 30, 2024[116] - The 2021 senior secured credit facility has a minimum liquidity covenant of $250 million, with total available funds of $330 million as of September 30, 2024, and no amounts drawn or outstanding[115] - The company does not anticipate material changes in net working capital requirements, liquidity, or cash flows in the near term, other than disclosed items[114] - The company believes its existing cash, cash equivalents, and available borrowing capacity will be sufficient to meet working capital needs for at least the next 12 months[118] Warrant Liability and Other Financial Items - The change in fair value of warrant liability for the three months ended September 30, 2024 was $(19) million, a decrease of 106% compared to the same period in 2023, driven by increased stock prices and a reduction of outstanding warrants[95] - The change in fair value of warrant liability for the nine months ended September 30, 2024 was $(32) million, an increase of 640% compared to the same period in 2023, primarily due to an increase in the value of the common stock underlying the outstanding warrants[95] - Other income (expense), net for the three months ended September 30, 2024 was $15 million, compared to $0 in the same period in 2023, primarily due to the extinguishment of warrants[96] Share and Equity Information - The fully diluted share count as of September 30, 2024, was 628 million shares, including 565 million Class A and B common stock, 32 million options, 25 million unvested restricted stock units, 2 million warrants, and 4 million shares reserved for charitable donations[117] Market and Operational Metrics - As of September 30, 2024, approximately 127,000 Locations, an increase of 28% year over year, processing approximately $151 billion of gross payment volume in the trailing 12 months[76] Risk Management - The company is exposed to financial market risks, including interest rates, foreign currency exchange rates, and credit risk, with no material changes since the 2023 Annual Report[119]

Shares of this software enterprise have surged 70% just this year.With the prospect of the Federal Reserve embarking on a path of lowering interest rates in the near term, investors might be eyeing businesses that have better growth prospects as a result. Toast (TOST 1.62%) certainly falls into this category.Since its initial public offering in late 2021, shares of the restaurant technology specialist have struggled and are currently off by 53% from their all-time high, which was established in November 202 ...

The latest trading session saw Toast (TOST) ending at $30.04, denoting a -0.27% adjustment from its last day's close. This move lagged the S&P 500's daily gain of 0.16%. On the other hand, the Dow registered a loss of 0.37%, and the technology-centric Nasdaq increased by 0.78%. Heading into today, shares of the restaurant software provider had gained 6.39% over the past month, outpacing the Computer and Technology sector's gain of 1.87% and the S&P 500's gain of 1.67% in that time. Investors will be eagerly ...

Group 1 - Toast's stock has increased over 60% year-to-date, and a recent price increase in credit card processing fees could further enhance growth into 2025 [1][5] - The company raised its credit card processing fee to 0.23%, marking the first increase in 12 years [2] - Previous attempts to increase prices faced backlash, leading to a reversal and the resignation of the CEO, but the current increase allows restaurant owners to decide on passing costs to customers [3][4] Group 2 - The fee increase, while small, could generate significant revenue given Toast's projected processing of nearly $160 billion in gross payment volume this year [5] - Toast plans to implement a series of small, steady price changes as part of its strategy to gauge customer reactions [6] - The company is expanding its presence in the restaurant sector, currently serving about 120,000 locations out of 750,000 in the U.S., and has also entered international markets [7] Group 3 - Toast is diversifying into adjacent markets such as coffee shops and retail food and beverage, enhancing its service offerings [8] - The restaurant industry is experiencing growth, with sales up 3.7% year-over-year in September, outpacing non-restaurant retail sales [9] - The company's annualized recurring run rate (ARR) grew by 29% to $1.47 billion, indicating strong growth potential [11] Group 4 - Investors are encouraged to focus on ARR rather than price-to-sales ratios due to the low gross margin of fintech revenue [10] - The combination of price increases, geographic expansion, and growing restaurant spending positions Toast for continued strong growth [11] - Future monitoring of the impact of credit card processing fee changes on Toast's business is advised, as further price increases are anticipated [12]

Toast is on a clear path toward significant market-share gains. Toast (TOST -1.80%) is a restaurant technology company with products for processing payments, taking orders, and more. And one year from now, Toast stock is likely to be trading higher than it is today. Revenue is growing at more than 20% annually, and management is demonstrating that it knows how to run a profitable business. Those two things are encouraging enough, but there's one more thing that makes me even more optimistic about the long-t ...

Core Viewpoint - Toast (NYSE: TOST) is highlighted as a speculative stock that integrates cloud software with fintech payment solutions, indicating its potential for growth and investment appeal [1]. Company Analysis - The company is recognized for its strong competitive advantages, solid management, and a history of creating shareholder value, making it a favorable long-term investment option [1]. Investment Strategy - The investment approach focuses on identifying high-quality companies, whether value or growth-oriented, with a long-term time horizon [1].

Group 1 - Toast (TOST) stock closed at $29.37, with a slight decrease of -0.51% compared to the previous day, underperforming the S&P 500's daily loss of 0.05% [1] - Over the past month, Toast's shares increased by 6.76%, outperforming the Computer and Technology sector's gain of 3.5% and the S&P 500's gain of 2.76% [1] - The upcoming earnings report is expected to show an EPS of $0.01, representing a significant increase of 111.11% year-over-year, with projected revenue of $1.29 billion, up 24.78% from the previous year [1] Group 2 - For the full year, Zacks Consensus Estimates predict earnings of -$0.10 per share and revenue of $4.9 billion, indicating year-over-year increases of 78.72% and 26.75%, respectively [2] - Recent analyst estimate revisions indicate a positive outlook for Toast's business operations and profitability, which are correlated with stock price performance [2] - The Zacks Rank system, which ranges from 1 (Strong Buy) to 5 (Strong Sell), currently rates Toast at 3 (Hold), with a historical average annual return of +25% for stocks rated 1 since 1988 [3] Group 3 - The Internet - Software industry, part of the Computer and Technology sector, holds a Zacks Industry Rank of 57, placing it in the top 23% of over 250 industries [3] - The Zacks Industry Rank measures the strength of industry groups based on the average Zacks Rank of individual stocks, with the top 50% rated industries outperforming the bottom half by a factor of 2 to 1 [3]

The latest trading session saw Toast (TOST) ending at $29.03, denoting a +1.04% adjustment from its last day's close. The stock outperformed the S&P 500, which registered a daily gain of 0.47%. Elsewhere, the Dow saw an upswing of 0.79%, while the tech-heavy Nasdaq appreciated by 0.28%. Coming into today, shares of the restaurant software provider had gained 7.4% in the past month. In that same time, the Computer and Technology sector gained 3.88%, while the S&P 500 gained 3.48%. The investment community wi ...