Financial Data and Key Metrics Changes - In Q1 2025, the company added over 6,000 net locations, with total locations reaching approximately 40,000, a 25% year-over-year increase [9][28] - Recurring gross profit streams grew 37% year-over-year, with adjusted EBITDA increasing to $133 million and GAAP operating income at $43 million [9][26] - Annual Recurring Revenue (ARR) grew 31%, while total FinTech and subscription gross profit increased by 37% year-over-year [26][27] - Subscription revenue rose by 38%, and gross profit grew by 45%, benefiting from improved ARR to revenue conversion [29] - Payments ARR grew 31%, with Gross Payment Volume (GPV) at $42 billion, a 22% year-over-year increase [30] Business Line Data and Key Metrics Changes - The company reported a 5% increase in SaaS Average Revenue Per User (ARPU) on an ARR basis [29] - Non-payment fintech solutions, particularly Toast Capital, contributed $47 million in gross profit, with solid growth in originations [31] - Operating expenses, excluding bad debt and credit-related expenses, increased by 12%, primarily due to a 25% rise in sales and marketing expenses [32] Market Data and Key Metrics Changes - The company is on track to cross 10,000 locations across international, food and beverage retail, and enterprise in 2025 [16] - The company continues to see strong momentum in international markets, with guest attached doubling over the past year for recent locations [19] Company Strategy and Development Direction - The company aims to scale locations and market share in the U.S. restaurant business while demonstrating that new markets can drive material growth [11][16] - The focus is on increasing customer adoption of the platform and driving differentiation through data and AI [20] - The company plans to continue investing in high-priority areas while gradually expanding margins [23] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in navigating the macro environment, noting stable consumer trends and strong sales productivity [49][51] - The company raised its full-year outlook based on strong Q1 performance and momentum heading into Q2 [34][28] - Management remains optimistic about the resilience of restaurants in a dynamic macro environment [27][78] Other Important Information - The company achieved a 32% adjusted EBITDA margin, exceeding medium-term margin goals [33] - Free cash flow for Q1 was $69 million, with expectations to mirror adjusted EBITDA for the full year [33] Q&A Session Summary Question: Discussion on payback periods for large enterprise wins - Management highlighted that enterprise deals, like Applebee's, have attractive payback periods due to large ARR booked [41] Question: Insights on macro trends and same-store sales - Management noted that same-store sales and consumer trends remain stable, contributing to confidence in future net adds [49][51] Question: Update on AI solutions rollout - Management indicated that AI solutions like Sous Chef and ToastIQ are still early in development but show promising early results [57][63] Question: Impact of tariffs on hardware costs - Management stated that incremental costs from tariffs are manageable and reflected in guidance, with a diversified supply chain reducing reliance on China [114][115] Question: Location growth algorithm and market share - Management confirmed that the share between new and existing locations remains balanced, with core business being the primary growth engine [118]