Toast(TOST)2024-08-06 20:07Financial Performance - GAAP operating income was (80) million in Q2 2023[1][2] - Net income was (98) million in Q2 2023[1][2] - Adjusted EBITDA was 15 million in Q2 2023[1][2] - Adjusted EBITDA for Q2 2024 was 15 million in Q2 2023[27] - Net cash provided by operating activities was 108 million in Q2 2024, compared to 39 million, respectively, in Q2 2023[2] - Net cash provided by operating activities for the three months ended June 30, 2024, was 50 million for the same period in 2023[13] - Net cash used in investing activities for the six months ended June 30, 2024, was 54 million for the same period in 2023[13] - Net cash provided by financing activities for the six months ended June 30, 2024, was 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 622 million at the end of June 30, 2023[13] - Free cash flow for Q2 2024 was 39 million in Q2 2023[35] - Net cash provided by operating activities in Q2 2024 was 50 million in Q2 2023[35] Revenue and Profit Metrics - Annualized recurring run-rate (ARR) grew 29% year-over-year to 40.5 billion in Q2 2024[2] - Gross Payment Volume (GPV) for Q2 2024 reached 32.1 billion in Q2 2023[26] - Total Annualized Recurring Run-Rate (ARR) grew to 1.140 billion in 2023[26] - Non-GAAP Subscription Services Gross Profit increased to 90 million in Q2 2023[31] - Non-GAAP Financial Technology Solutions Gross Profit remained steady at 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 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 1,360 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 84 million in Q2 2023[33] - Non-GAAP Research and Development Expenses were 66 million in Q2 2023[34] - Non-GAAP General and Administrative Expenses reduced to 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]