The earnings call conveyed a positive sentiment overall, highlighting strong location and revenue growth, successful product launches, and significant enterprise wins. However, challenges such as the decrease in GPV per location and ARPU in international markets were noted. The company's strategic focus on market expansion and product innovation positions it well for future growth.

Company Guidance

During Toast's third quarter 2024 earnings call, the company provided strong guidance for the upcoming quarter and the full year. For Q4, Toast anticipates subscription and fintech gross profit to grow between 32% and 35% year-over-year, with adjusted EBITDA projected to range from $90 million to $100 million. Despite a typical seasonal decline in GPV per location expected in Q4, the company remains confident in its momentum across various strategic initiatives, including scaling locations, expanding product offerings, and entering new markets. For the full year, Toast forecasts 32% to 33% growth in subscription gross profit and an adjusted EBITDA of $352 million to $362 million, marking a 26% margin at the midpoint. This guidance reflects Toast's strong operational performance and disciplined cost structure realignment, setting the stage for sustained growth into 2025 and beyond.

Strong Location and Revenue Growth

Toast added approximately 7,000 net locations in Q3 2024, increasing total locations to nearly 127,000, up 28% year-over-year. Gross profit grew 35% year-over-year.

Launch of New Products

Toast introduced Branded App and SMS Marketing tools, enhancing customer engagement and generating additional revenue streams. The Branded App saw orders make up almost 15% of digital sales for some customers.

Enterprise Wins and Market Expansion

Toast secured a contract with Potbelly Sandwich Works to deploy across 400+ locations and sees continued momentum in international and retail markets.

Adjusted EBITDA and Operating Income

Toast reported an adjusted EBITDA of $113 million with a 30% margin on recurring gross profit streams and a GAAP operating income of $34 million.

Capital Program Optimization

Toast Capital saw strong demand with defaults remaining in line with expectations, contributing to non-payment fintech solutions increasing to $43 million.

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Toast Inc (TOST) Earnings, Revenues Date & History

The upcoming earnings date is based on a company’s previous reporting, and may be updated when the actual date is announced

Daily Earnings Calendar >

TOST Earnings History

Report Date	Fiscal Quarter	Forecast / EPS	Last Year's EPS	EPS YoY Change	Slides	Play Transcript
Nov 09, 2021	2021 (Q3)	-0.27 / -0.90	-0.125	-622.40% (-0.78)	―	―
Feb 15, 2022	2021 (Q4)	-0.12 / -0.23	-0.122	-88.52% (-0.11)	―	―
May 12, 2022	2022 (Q1)	-0.12 / -0.05	-0.197	74.62% (+0.15)	―	―
Aug 11, 2022	2022 (Q2)	-0.12 / -0.11	-0.39	71.79% (+0.28)	―	―
Nov 10, 2022	2022 (Q3)	-0.08 / -0.04	-0.903	96.01% (+0.87)
Feb 16, 2023	2022 (Q4)	-0.05 / -0.06	-0.23	75.22% (+0.17)
May 09, 2023	2023 (Q1)	-0.05 / -0.04	-0.05	28.00% (+0.01)
Aug 08, 2023	2023 (Q2)	>-0.01 / 0.02	-0.11	121.82% (+0.13)
Nov 07, 2023	2023 (Q3)	0.04 / 0.05	-0.036	227.78% (+0.08)
Feb 15, 2024	2023 (Q4)	0.03 / 0.05	-0.057	184.21% (+0.11)

The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.

Beat

Missed

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TOST Earnings-Related Price Changes

Report Date	Price 1 Day Before	Price 1 Day After	Percentage Change
Nov 07, 2024	$32.67	$37.48	+14.72%
Aug 06, 2024	$24.19	$22.71	-6.12%
May 07, 2024	$23.73	$26.82	+13.02%
Feb 15, 2024	$19.20	$22.42	+16.77%

Earnings announcements can affect a stock’s price. This table shows the stock's price the day before and the day after recent earnings reports, including the percentage change.

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