In the latest market close, Toast (TOST) reached $27.65, with a -0.22% movement compared to the previous day. This change lagged the S&P 500's 0.28% gain on the day. Elsewhere, the Dow saw an upswing of 0.15%, while the tech-heavy Nasdaq appreciated by 0.15%. Shares of the restaurant software provider witnessed a gain of 17.02% over the previous month, beating the performance of the Computer and Technology sector with its loss of 0.02% and the S&P 500's gain of 2%. Investors will be eagerly watching for the ...

Core Viewpoint - Toast (TOST) has demonstrated significant stock performance, gaining 44.1% year to date, outperforming both the Zacks Computer and Technology Sector and the S&P 500 index [1] Group 1: Stock Performance - Toast's stock has outperformed the Zacks Internet - Software industry's return of 15.9% year to date, reflecting strong investor confidence in its business potential [1] - The company added 8,000 locations in Q2 2024, achieving a market share of 13% [2][8] Group 2: Business Growth Drivers - The growing adoption of Toast's solutions among small and medium businesses in the U.S. and plans for international expansion are key factors driving investor confidence [2] - Rising Annual Recurring Revenue (ARR) is attributed to a larger share of repeat customers, supported by a suite-based packaging model that encourages broader platform adoption [3] - New tools such as AI-powered marketing suites and restaurant management systems are being introduced to enhance guest experience and operational efficiency [4] Group 3: Competitive Landscape - Toast faces competition from Block (SQ), Fiserv (FI) Clover, and Lightspeed (LSPD) Upserve, as well as food delivery services like DoorDash, Uber Eats, and GrubHub [7] - Despite competition, Toast differentiates itself by increasing connectivity in the small and medium business space, which remains largely unserved [8] Group 4: Financial Outlook - Toast expects its full-year 2024 gross profit to be between $1.34 billion and $1.36 billion, indicating a growth of 27-29% compared to 2023 [9] - The Zacks Consensus Estimate for 2024 revenues is projected at $4.90 billion, reflecting a year-over-year growth of 26.8% [9] Group 5: Conclusion - Toast is rapidly increasing its profit margins due to growing market share, although it faces stiff competition from established players [10]

Toast (TOST) closed at $26.19 in the latest trading session, marking a +0.38% move from the prior day. This move lagged the S&P 500's daily gain of 0.54%. Elsewhere, the Dow gained 0.72%, while the tech-heavy Nasdaq added 0.65%. Coming into today, shares of the restaurant software provider had gained 5.16% in the past month. In that same time, the Computer and Technology sector gained 3.3%, while the S&P 500 gained 4.86%. The investment community will be paying close attention to the earnings performance of ...

Toast (TOST) has been one of the most searched-for stocks on Zacks.com lately. So, you might want to look at some of the facts that could shape the stock's performance in the near term. Shares of this restaurant software provider have returned +6.2% over the past month versus the Zacks S&P 500 composite's +3.4% change. The Zacks Internet - Software industry, to which Toast belongs, has gained 7.1% over this period. Now the key question is: Where could the stock be headed in the near term? While media releas ...

standret/iStock via Getty Images Right now, despite the euphoric mood in the stock markets, most investors are bracing for a potential U.S. recession in the back half of the year. Companies like Yelp (YELP) have already warned that the retail and restaurant space is slowing down, which is a clear leading indicator of the U.S. consumer pinching budgets. Yet against this backdrop, point-of-sale technology company Toast (NYSE:TOST) has never looked healthier. On top of achieving stellar revenue and ARR growth ...

Toast (TOST) has recently been on Zacks.com's list of the most searched stocks. Therefore, you might want to consider some of the key factors that could influence the stock's performance in the near future. Over the past month, shares of this restaurant software provider have returned -2.4%, compared to the Zacks S&P 500 composite's +2.2% change. During this period, the Zacks Internet - Software industry, which Toast falls in, has gained 7.2%. The key question now is: What could be the stock's future direct ...

Here's why the stock has a lot of potential upside. Toast (TOST 0.98%) unexpectedly turned a profit in the second quarter, but its shares were still unable to gain any traction following its strong results and increased guidance. Shares of the cloud-based restaurant management software company are up over 25% year to date, but well off its recent highs. Let's look at the company's most recent quarterly results, future prospects, and valuation to see if this is a good time to buy the beaten-down stock. Incre ...

Toast Inc (TOST) closed 6.1% lower at $22.71 last session, even after the fintech company's second-quarter earnings and revenue exceeded estimates. Anytime there's a top-line beat but the stock moves lower, its worth a closer look under the hood to see if there's a 'buy the dip' opportunity. The stock is down 13.1% already in August, but could soon stage a bounce after encountering a historically bullish trendline. The stock is within one standard deviation of its 126-day moving average, after trading above ...

Financial Data and Key Metrics Changes - The company reported a 29% year-over-year increase in recurring gross profit streams, totaling $344 million [16][17] - Adjusted EBITDA reached $92 million, representing a 27% margin on recurring gross profit streams, with GAAP profitability achieved earlier than expected [16][17] - Total locations increased to approximately 120,000, up 29% year-over-year, with a record addition of 8,000 net locations in Q2 [16][17] Business Line Data and Key Metrics Changes - SaaS ARR grew 35% year-over-year, driven by strong location growth and a mid-single-digit increase in SaaS ARPU [17] - Payments ARR grew 24%, while fintech gross profit increased by 23% in Q2 [17] - The net take rate was 54 basis points, with the core net take rate remaining flat year-over-year at 45 basis points [18] Market Data and Key Metrics Changes - The company added approximately 8,000 net locations primarily in the U.S. SMB and mid-market segments, with contributions from international, enterprise, and food and beverage retail [17] - Internationally, the company has 2,000 live locations, with strong adoption of new products like online ordering and kiosks [12][17] Company Strategy and Development Direction - The company aims to scale locations and market share in its core business, expand offerings for restaurants, and enter new market segments [7][8] - Strategic priorities include delivering ongoing operating leverage and investing in growth areas while maintaining disciplined capital allocation [14][19] - The company is focused on leveraging AI and data to enhance customer offerings and drive demand [50] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to manage through various economic cycles, noting resilience in restaurant performance [25] - The guidance for Q3 includes expectations for total subscription and fintech gross profit growth of 23% to 27% year-over-year [23] - Management remains optimistic about sustaining high growth and margin expansion over the long term [24] Other Important Information - The company has repurchased $49 million in shares year-to-date and plans to continue opportunistic buybacks [22] - Free cash flow totaled $108 million in Q2, driven by strong adjusted EBITDA and favorable working capital [21] Q&A Session Summary Question: Changes in restaurant health and macro observations - Management noted that GPV per location was down 3% and remains consistent, with confidence in managing through economic cycles [25] Question: Subscription ARR and product resonance - Management highlighted strong performance across various product offerings, including data and AI tools, which are resonating well with customers [27] Question: Incremental investments and market opportunities - Management confirmed that the mix of new restaurant openings and competitive takeaways remains stable, with continued healthy unit economics [30] Question: Legacy replacement opportunities in various markets - Management identified enterprise and retail segments as having significant legacy replacement opportunities, similar to the restaurant business a decade ago [32] Question: Upsell team progress and guidance clarification - Management acknowledged the upsell team's progress and emphasized the importance of driving ARPU growth alongside location growth [34] Question: Contribution from new areas like food and beverage retail - Management reported strong growth in international and retail segments, with ongoing investments to expand the platform [40] Question: GPV per location trends and impacts - Management indicated that the primary driver for the decline in GPV per location is same-store sales, with no notable patterns across segments [44] Question: Investments needed in food and beverage retail and international - Management described the early stages of development in these new verticals, with positive customer reception and ongoing investments [48] Question: Customer interest in AI initiatives - Management noted early positive feedback on AI initiatives, particularly in guest marketing and data utilization for restaurant operations [50] Question: Gross retention expectations and churn metrics - Management reported churn slightly above 10% annually, primarily due to business closures, with no material changes in retention assumptions [53]

Toast (TOST) came out with quarterly earnings of $0.02 per share, beating the Zacks Consensus Estimate of a loss of $0.02 per share. This compares to loss of $0.19 per share a year ago. These figures are adjusted for nonrecurring items. This quarterly report represents an earnings surprise of 200%. A quarter ago, it was expected that this restaurant software provider would post a loss of $0.16 per share when it actually produced a loss of $0.15, delivering a surprise of 6.25%. Over the last four quarters, t ...