TOST Earnings Prediction
The chart below shows how TOST performed 10 days before and after its earnings report, based on data from the past quarters. Typically, TOST sees a +2.99% change in stock price 10 days leading up to the earnings, and a +1.62% change 10 days following the report. On the earnings day itself, the stock moves by -1.77%. This data can give you a slight idea of what to expect for the next quarter's release.
TOST Key Earning Data
2024/Q4
Year Over Year
Quarter Over Quarter
Total Revenue
1.34B
29.15%
2.53%
Gross Margin
24.89%
14.12%
0.89%
Operating Margin
2.62%
200.38%
0.38%
Net Margin
2.47%
171.18%
-42.42%
EPS
0.05
171.43%
-44.44%
No Data Available
TOST Earnings Analysis
Toast Inc Corporation (TOST.N) Earnings Conference Call
Positive
Record Year for Growth: 2024 was a record year for Toast, adding 28,000 net locations and achieving 34% year-over-year growth in recurring gross profit streams.
GAAP Profitability Milestone: Adjusted EBITDA grew to $373 million, marking a significant milestone as the company became GAAP profitable for the first time in its history.
Market Share Expansion: Toast's vertical strategy has deepened market share, with a current market share of just 15% in the US restaurant market, indicating substantial growth potential.
Successful Partnerships Drive Growth: The enterprise team had a successful year with major partnerships, including Hilton Hotels and Ascent brands, which are expected to drive further growth.
International SaaS ARPU Growth: International markets showed strong customer reception, with a 50% year-over-year increase in SaaS ARPU for international locations launched in Q4 2024.
Strategic Investment for Growth: The company is investing in R&D and go-to-market capacity to enhance customer satisfaction and market share in new segments, positioning for strong growth in 2026 and beyond.
Industry Recognition and Value: Toast's platform has been recognized by a significant number of award-winning restaurants, showcasing its effectiveness and value in the industry.
Product Launch Impact: The launch of new products, such as the benchmarking tool, has provided actionable insights for customers, leading to increased revenues and improved operational efficiency.
Strong Financial Position: Toast Capital's originations exceeded $1 billion, reflecting healthy demand and a decrease in bad debt, indicating a strong financial position.
Growth and Profitability Balance: The company is focused on maintaining a balance between growth and profitability, with a disciplined approach to investments and a target of 30% adjusted EBITDA margin for 2025.
Negative
Earnings Miss Reported: Toast, Inc. missed earnings expectations with a reported EPS of $0.05, falling short of the expected $0.06.
Market Share Potential: Despite strong growth, Toast holds only a 15% market share in the US restaurant market, indicating limited penetration and potential for future growth.
Decline in GPV per Location: The company experienced a decline in GPV per location by 1% year-over-year in Q4, suggesting challenges in maintaining transaction volume per location.
Bad Debt Concerns: While Toast Capital's bad debt improved, there are expectations for bad debt to grow as the program scales, indicating potential future financial risks.
Increased Marketing Investment: Sales and marketing expenses increased by 32% year-over-year, reflecting a significant investment that may not yield immediate returns.
Growth Slowdown Anticipated: The company anticipates a slowdown in growth in the second half of 2025 due to lapping improved ARR to revenue conversion and one-time benefits from 2024.
TOST FAQs
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TOST Earning Call Sentiment
Toast, Inc. (NYSE:TOST) Q4 2024 Earnings Call Transcript
TOST.N
3.98%Positive
The earnings call indicates strong financial performance with record high revenue, GAAP profitability, and significant growth in SaaS ARR and subscription revenue. The Q&A session provided additional positive insights, especially regarding retail expansion and AI initiatives. However, there are concerns about weather impacts and management's unclear responses on international strategy. Overall, the strong financials and optimistic guidance suggest a positive stock price movement.
