Toast Announces Fourth Quarter and Full Year 2024 Financial Results
Toast (NYSE: TOST), the all-in-one digital technology platform built for restaurants, today reported financial results for the fourth quarter and full year ended December 31, 2024. “Toast had a str...
Added a record 28,000 net locations in 2024, ending the year with approximately 134,000 Locations
Annualized recurring run-rate (ARR) increased 34% to over $1.6 billion as of December 31, 2024
Fourth quarter net income was $33 million and Adjusted EBITDA was $111 million
Full year 2024 net income was $19 million and Adjusted EBITDA was $373 million
BOSTON: Toast (NYSE: TOST), the all-in-one digital technology platform built for restaurants, today reported financial results for the fourth quarter and full year ended December 31, 2024.
“Toast had a strong close to 2024, capping off a transformational year where we added a record 28,000 net locations, grew our recurring gross profit streams1 34%, delivered Adjusted EBITDA of $373 million, and achieved our first year of GAAP profitability,” said Toast CEO and Co-Founder Aman Narang. “Our record location adds show the momentum with our core customer base, and the positive signals across our newer customer groups: enterprise, international and food and beverage retail. In 2025, we’ll accelerate our efforts across these new addressable markets and continue to further differentiate our platform. We’re well on our way to our ultimate goal: serving many multiples of the 134,000 locations we do today, and delivering durable growth and strong profitability over the long term.”
Financial Highlights for the Fourth Quarter of 2024
- ARR as of December 31, 2024 was $1.6 billion, up 34% year over year.
- Total Locations increased 26% year over year to approximately 134,000.
- Gross Payment Volume (GPV) increased 25% year over year to $42.2 billion.
- GAAP subscription services and financial technology solutions gross profit was up 40% year over year to $378 million. Non-GAAP subscription services and financial technology solutions gross profit grew 39% year over year to $392 million.
- GAAP income from operations was $32 million in Q4 2024 compared to GAAP loss from operations of $(56) million in Q4 2023.
- GAAP net income was $33 million in Q4 2024 compared to GAAP net loss of $(36) million in Q4 2023. Adjusted EBITDA was $111 million in Q4 2024 compared to Adjusted EBITDA of $29 million in Q4 2023.
- Net cash provided by operating activities of $147 million and Free Cash Flow of $134 million in Q4 2024, compared to net cash provided by operating activities of $92 million and Free Cash Flow of $81 million in Q4 2023.
Financial Highlights for the Full Year 2024
- GPV for the full year 2024 increased 26% year over year to $159.1 billion.
- GAAP subscription services and financial technology solutions gross profit was up 34% year over year to $1.4 billion. Non-GAAP subscription services and financial technology solutions gross profit grew 34% year over year to $1.4 billion.
- GAAP income from operations was $16 million in full year 2024 compared to GAAP loss from operations of $(287) million in full year 2023.
- GAAP net income was $19 million in full year 2024 compared to GAAP net loss of $(246) million in full year 2023. Adjusted EBITDA was $373 million in full year 2024 compared to Adjusted EBITDA of $61 million in full year 2023.
- Net cash provided by operating activities of $360 million and Free Cash Flow of $306 million in full year 2024, compared to net cash provided by operating activities of $135 million and Free Cash Flow of $93 million in full year 2023.
Percentages may not tie due to rounding. For more information on the non-GAAP financial measures and key metrics discussed in this press release, please see the sections titled “Non-GAAP Financial Measures” and “Key Business Metrics,” as well as the reconciliations of non-GAAP financial measures to their nearest comparable GAAP financial measures at the end of this press release.
Outlook(2)
For the first quarter ending March 31, 2025, Toast expects to report:
- Non-GAAP subscription services and financial technology solutions gross profit in the range of $385 million to $395 million (27-30% growth compared to Q1 2024)
- Adjusted EBITDA in the range of $100 million to $110 million
For the full year ending December 31, 2025, Toast expects to report:
- Non-GAAP subscription services and financial technology solutions gross profit in the range of $1,745 million to $1,765 million (23-25% growth compared to 2024)
- Adjusted EBITDA in the range of $510 million to $530 million
The outlook provided above constitutes forward-looking information within the meaning of applicable securities laws and is based on a number of assumptions and subject to a number of risks. See cautionary note regarding “Forward-looking Statements” in this press release.
Recent Business Highlights
- Toast announced an expanded partnership with Uber Technologies, Inc. (NYSE: UBER), giving restaurants increased choice, and their guests more food delivery options while helping restaurants reduce costs and expand their reach by leveraging Uber’s extensive delivery network.
- In 2024, Toast was proud to partner with more than one-third of the 2024 James Beard award-winning restaurants and over half of Michelin-rated U.S. restaurants.
- Toast has signed an agreement with Ascent Hospitality Management to implement Toast Enterprise Solutions at Perkins and Huddle House restaurants across an initial 500 locations, representing Toast’s largest full service restaurant group to-date. Additionally, Toast recently signed Mendocino Farms, a fast-casual restaurant group with over 70 locations in California, who looked to Toast as a strategic partner to help modernize store operations, streamline staff trainings, and support future growth plans.
Conference Call Information
Toast will host a live conference call at 5:00 p.m. Eastern Time on Wednesday, February 19, 2025. The live webcast of the conference call can be accessed through Toast’s investor relations website at http://investors.toasttab.com. A replay of the webcast will be available for a period of 90 days after the call.
Toast has used, and intends to continue to use, its Investor Relations website (http://investors.toasttab.com), as well as the Toast Newsroom (https://pos.toasttab.com/news), as a means of disclosing material non-public information and for complying with its disclosure obligations under Regulation FD. Information on or that can be accessed through Toast’s Investor Relations website, or that is contained in any website to which a hyperlink is provided herein is not part of this press release, and the inclusion of Toast’s Investor Relations website address, and any hyperlinks are only inactive textual references.
About Toast
Toast is a cloud-based, all-in-one digital technology platform purpose-built for the entire restaurant community. Toast provides a comprehensive platform of software as a service (SaaS) products and financial technology solutions that give restaurants everything they need to run their business across point of sale, payments, operations, digital ordering and delivery, marketing and loyalty, and team management. We serve as the restaurant operating system, connecting front of house and back of house operations across service models including dine-in, takeout, delivery, catering, and retail. Toast helps restaurants streamline operations, increase revenue and deliver amazing guest experiences. For more information, visit www.toasttab.com.
Forward-looking Statements
This press release contains “forward-looking statements,” within the meaning of Section 27A of the Securities Act of 1933, Section 21E of the Securities Exchange Act of 1934 and the Private Securities Litigation Reform Act of 1995. Forward-looking statements may be identified by the context of the statement and generally arise when Toast or its management is discussing its beliefs, estimates or expectations. Such statements generally include the words “believes,” “plans,” “intends,” “targets,” “may,” “could,” “should,” “will,” “expects,” “estimates,” “suggests,” “anticipates,” “outlook,” “continues,” or similar expressions. These statements are not historical facts or guarantees of future performance, but represent the beliefs of Toast and its management at the time the statements were made regarding future events which are subject to certain risks, uncertainties and other factors, many of which are outside Toast’s control. Actual results and outcomes may differ materially from what is expressed or forecast in such forward-looking statements. Forward-looking statements include, without limitation, statements about expected financial positions or growth; results of operations and future operating results; cash flows; guidance on financial results for the first fiscal quarter and full year of 2025; the expectations of demand for Toast’s products and growth of its business; the growth rates in the markets in which Toast competes; Toast’s investments in technology and infrastructure; arrangements between Toast and its customers, including the planned and future implementation of the Toast platform at such customers’ locations; Toast’s business relationship with its partners; Toast’s ability to deliver innovative solutions; Toast’s ability to attract and retain customers; financing plans; business strategy; operating plans; competitive positions; and growth opportunities for existing products and new markets.
The forward-looking statements contained in this release are also subject to other risks and uncertainties, including those more fully described in Toast’s filings with the Securities and Exchange Commission (“SEC”), including in the sections entitled “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations’’ in Toast’s Annual Report on Form 10-K for the year ended December 31, 2023, Toast’s Annual Report on Form 10-K for the year ended December 31, 2024 that will be filed following this earnings release, and Toast’s subsequent SEC filings. Toast can give no assurance that the plans, intentions, expectations or strategies as reflected in or suggested by those forward-looking statements will be attained or achieved. The forward-looking statements in this release are based on information available to Toast as of the date hereof, and Toast disclaims any obligation to update any forward-looking statements, except as required by law. These forward-looking statements should not be relied upon as representing Toast’s views as of any date subsequent to the date of this press release.
____________________
1 Toast considers Non-GAAP subscription services and financial technology solutions gross profit to be its recurring gross profit streams.
2 A reconciliation of these forward looking Non-GAAP measures to the corresponding GAAP measure is not available without unreasonable effort because of the inherent difficulty of accurately forecasting the occurrence and financial impact of the various adjusting items necessary for such reconciliations that have not yet occurred, are out of our control, or cannot be reasonably predicted, including but not limited to the change in fair value of our warrant liability and stock-based compensation. For the same reasons, the Company is unable to assess the probable significance of the unavailable information, which could have a material impact on its future GAAP financial results.
TOAST, INC. CONSOLIDATED STATEMENTS OF OPERATIONS (unaudited) (in millions, except per share amounts) | ||||||||||||||||
| Three Months Ended December 31, |
| Year Ended December 31, | |||||||||||||
|
| 2024 |
|
|
| 2023 |
|
|
| 2024 |
|
|
| 2023 |
| |
Revenue: |
|
|
|
|
|
|
| |||||||||
Subscription services | $ | 200 |
|
| $ | 142 |
|
| $ | 706 |
|
| $ | 500 |
| |
Financial technology solutions |
| 1,090 |
|
|
| 851 |
|
|
| 4,053 |
|
|
| 3,189 |
| |
Hardware and professional services |
| 48 |
|
|
| 43 |
|
|
| 201 |
|
|
| 176 |
| |
Total revenue |
| 1,338 |
|
|
| 1,036 |
|
|
| 4,960 |
|
|
| 3,865 |
| |
Costs of revenue: |
|
|
|
|
|
|
| |||||||||
Subscription services |
| 60 |
|
|
| 48 |
|
|
| 219 |
|
|
| 166 |
| |
Financial technology solutions |
| 852 |
|
|
| 675 |
|
|
| 3,175 |
|
|
| 2,503 |
| |
Hardware and professional services |
| 92 |
|
|
| 86 |
|
|
| 371 |
|
|
| 357 |
| |
Amortization of acquired intangible assets |
| 1 |
|
|
| 1 |
|
|
| 5 |
|
|
| 5 |
| |
Total costs of revenue |
| 1,005 |
|
|
| 810 |
|
|
| 3,770 |
|
|
| 3,031 |
| |
Gross profit |
| 333 |
|
|
| 226 |
|
|
| 1,190 |
|
|
| 834 |
| |
Operating expenses: |
|
|
|
|
|
|
| |||||||||
Sales and marketing |
| 130 |
|
|
| 102 |
|
|
| 470 |
|
|
| 401 |
| |
Research and development |
| 93 |
|
|
| 94 |
|
|
| 351 |
|
|
| 358 |
| |
General and administrative |
| 78 |
|
|
| 86 |
|
|
| 307 |
|
|
| 362 |
| |
Restructuring expenses |
| — |
|
|
| — |
|
|
| 46 |
|
|
| — |
| |
Total operating expenses |
| 301 |
|
|
| 282 |
|
|
| 1,174 |
|
|
| 1,121 |
| |
Income (loss) from operations |
| 32 |
|
|
| (56 | ) |
|
| 16 |
|
|
| (287 | ) | |
Other income (expense): |
|
|
|
|
|
|
| |||||||||
Interest income, net |
| 13 |
|
|
| 10 |
|
|
| 42 |
|
|
| 37 |
| |
Change in fair value of warrant liability |
| (11 | ) |
|
| 8 |
|
|
| (49 | ) |
|
| 3 |
| |
Other income (expense), net |
| (1 | ) |
|
| 3 |
If you liked this article and want to stay up to date with news from
InnovationOpenLab.com subscribe to ours
Free newsletter.
Related news
Last NewsRSA at Cybertech Europe 2024Alaa Abdul Nabi, Vice President, Sales International at RSA presents the innovations the vendor brings to Cybertech as part of a passwordless vision for… Italian Security Awards 2024: G11 Media honours the best of Italian cybersecurityG11 Media's SecurityOpenLab magazine rewards excellence in cybersecurity: the best vendors based on user votes How Austria is making its AI ecosystem growAlways keeping an European perspective, Austria has developed a thriving AI ecosystem that now can attract talents and companies from other countries Sparkle and Telsy test Quantum Key Distribution in practiceSuccessfully completing a Proof of Concept implementation in Athens, the two Italian companies prove that QKD can be easily implemented also in pre-existing… Most readG11 Media Networks
InnovationOpenLab is a channel of BitCity, a newspaper registered at the court of Como , 
| |||||||||