Toast(TOST)2024-08-06 20:07Financial Performance - GAAP operating income was $5 million in Q2 2024, compared to a GAAP operating loss of $(80) million in Q2 2023[1][2] - Net income was $14 million in Q2 2024, compared to a net loss of $(98) million in Q2 2023[1][2] - Adjusted EBITDA was $92 million in Q2 2024, compared to $15 million in Q2 2023[1][2] - Adjusted EBITDA for Q2 2024 was $92 million, a significant improvement from $15 million in Q2 2023[27] - Net cash provided by operating activities was $124 million and Free Cash Flow was $108 million in Q2 2024, compared to $50 million and $39 million, respectively, in Q2 2023[2] - Net cash provided by operating activities for the three months ended June 30, 2024, was $124 million, compared to $50 million for the same period in 2023[13] - Net cash used in investing activities for the six months ended June 30, 2024, was $33 million, compared to $54 million for the same period in 2023[13] - Net cash provided by financing activities for the six months ended June 30, 2024, was $47 million, compared to $46 million for the same period in 2023[13] - Total cash, cash equivalents, cash held on behalf of customers, and restricted cash at the end of June 30, 2024, was $864 million, compared to $622 million at the end of June 30, 2023[13] - Free cash flow for Q2 2024 was $108 million, a substantial increase from $39 million in Q2 2023[35] - Net cash provided by operating activities in Q2 2024 was $124 million, compared to $50 million in Q2 2023[35] Revenue and Profit Metrics - Annualized recurring run-rate (ARR) grew 29% year-over-year to $1.5 billion as of June 30, 2024[1][2] - Gross Payment Volume (GPV) increased 26% year-over-year to $40.5 billion in Q2 2024[2] - Gross Payment Volume (GPV) for Q2 2024 reached $40.5 billion, a 26% increase compared to $32.1 billion in Q2 2023[26] - Total Annualized Recurring Run-Rate (ARR) grew to $1.473 billion in 2024, up 29% from $1.140 billion in 2023[26] - Non-GAAP Subscription Services Gross Profit increased to $127 million in Q2 2024, up from $90 million in Q2 2023[31] - Non-GAAP Financial Technology Solutions Gross Profit remained steady at $217 million in Q2 2024, compared to $177 million in Q2 2023[32] - For Q3 2024, Toast expects Non-GAAP subscription services and financial technology solutions gross profit to be in the range of $345 million to $355 million, representing 23-27% growth compared to Q3 2023[4] - For full year 2024, Toast expects Non-GAAP subscription services and financial technology solutions gross profit to be in the range of $1,340 million to $1,360 million, representing 27-29% growth compared to 2023[4] Operational Metrics - Added approximately 8,000 net new locations in Q2 2024, bringing total locations to approximately 120,000, a 29% year-over-year increase[1][2] - A live location (Location) is defined as a unique site using Toast Point of Sale with transaction volumes above a minimum threshold[25] Expense Management - Non-GAAP Sales and Marketing Expenses decreased to $97 million in Q2 2024 from $84 million in Q2 2023[33] - Non-GAAP Research and Development Expenses were $63 million in Q2 2024, down from $66 million in Q2 2023[34] - Non-GAAP General and Administrative Expenses reduced to $55 million in Q2 2024 from $61 million in Q2 2023[34] AI and Innovation - Toast launched an AI innovation hub in June 2024, with 57% of surveyed restaurants reporting already using or wanting to use AI-powered experiences[6] Definitions and Key Metrics - Adjusted EBITDA is defined as net income (loss) adjusted for stock-based compensation, depreciation, amortization, and other non-operating items[15] - Non-GAAP Subscription Services and Financial Technology Solutions Gross Profit excludes stock-based compensation and depreciation/amortization expenses[16] - Gross Payment Volume (GPV) is a key metric representing the total dollars processed through the Toast payments platform[22] - Annualized Recurring Run-Rate (ARR) is calculated using subscription and payment processing services, excluding Toast Capital and SaaS credits[23]