Toast(TOST) - 2024 Q4 - Annual Results

Financial Performance - Fourth quarter net income was $33 million, compared to a net loss of$(36) million in Q4 2023[5] - Full year 2024 net income was $19 million, compared to a net loss of$(246) million in 2023[5] - Adjusted EBITDA for the fourth quarter was $111 million, up from$29 million in Q4 2023[5] - The company reported a non-GAAP adjusted EBITDA of $253 million for the year ended December 31, 2024, compared to$277 million in 2023[22] - Adjusted EBITDA for Q4 2024 was $111 million, significantly up from$29 million in Q4 2023, and for the full year, it rose to $373 million from$61 million[32] - Free cash flow for Q4 2024 was $134 million, up from$81 million in Q4 2023, and for the full year, it increased to $306 million from$93 million[40] Revenue Growth - Total revenue for the full year 2024 was $4.96 billion, up from$3.87 billion in 2023[17] - Annualized recurring run-rate (ARR) increased 34% year over year to over $1.6 billion as of December 31, 2024[5] - Total Annualized Recurring Run-Rate (ARR) for 2024 was$1.626 billion, a 34% increase from $1.218 billion in 2023[32] - Payments Annualized Recurring Run-Rate (ARR) increased by 35$794 million in 2024 from $589 million in 2023, while Subscription ARR grew by 32$832 million from $629 million[32] Payment Volume - Gross Payment Volume (GPV) increased 25$42.2 billion in Q4 2024[5] - Gross Payment Volume (GPV) for Q4 2024 reached $42.2 billion, a 25$33.7 billion in Q4 2023, and for the full year 2024, GPV was $159.1 billion, up 26$126.1 billion in 2023[32] Assets and Equity - Total assets increased to $2,408 million in 2024 from$1,958 million in 2023, representing a growth of 23%[19] - Total stockholders' equity rose to $1,545 million in 2024, up from$1,194 million in 2023, reflecting a growth of 29%[19] - Cash and cash equivalents increased to $903 million at the end of 2024, up from$605 million at the end of 2023, marking a 49% increase[21] Liabilities - The total current liabilities increased to $811 million in 2024 from$663 million in 2023, which is a rise of 22%[19] - The company’s total liabilities increased to $863 million in 2024, up from$764 million in 2023, indicating a growth of 13%[19] Operational Metrics - Cash flows from operating activities for the year ended December 31, 2024, were $360 million, compared to$135 million in 2023, indicating a 167% increase[21] - The company’s accounts receivable, net, increased to $115 million in 2024 from$69 million in 2023, representing a growth of 67%[19] Expenses - Costs of revenue for Q4 2024 were $1.005 billion, compared to$810 million in Q4 2023, and for the full year, costs increased to $3.770 billion from$3.031 billion[34] - Research and development expenses for Q4 2024 were $93 million, slightly down from$94 million in Q4 2023, while for the full year, expenses totaled $351 million compared to$358 million in 2023[39] Partnerships and Future Expectations - The company announced an expanded partnership with Uber Technologies, enhancing delivery options for restaurants[10] - Non-GAAP subscription services and financial technology solutions gross profit for Q1 2025 is expected to be in the range of $385 million to$395 million, representing 27-30% growth compared to Q1 2024[10] - Toast expects Adjusted EBITDA for the full year 2025 to be in the range of $510 million to$530 million[10]