Toast Raises A Glass On Strong Q3 Earnings, Stock Soars
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Toast, Inc. (NYSE:TOST) shares are trading higher on Friday in the premarket session.
The company reported earnings per share of 7 cents, beating the street view of one cent. Quarterly sales of $1.305 billion outpaced the analyst consensus estimate of $1.29 billion.
In the third quarter, Toast added approximately 7,000 net new locations. Additionally, the total number of locations grew by 28% compared to the previous year, reaching nearly 127,000 locations.
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As of September 30, the company’s annualized recurring run-rate (ARR) grew by 28%, reaching $1.6 billion.
Toast’s Gross Payment Volume (GPV) increased by 24% year over year, reaching $41.7 billion. Adjusted EBITDA was $113 million in the quarter, significantly higher than $35 million in the year-ago period.
“We are well positioned to finish out the year strong and carry this momentum into 2025,” said Toast CEO and Co-Founder Aman Narang.
Toast exited the quarter with cash and equivalents worth $1.3 billion and inventories worth $106 million.
“Our differentiated vertical software platform is at the foundation of that success, and we continue to innovate to deliver more value to our customers: this fall we launched new products like Branded Mobile App and SMS Marketing alongside over a dozen feature updates,” the CEO added.
Outlook: For the fourth quarter, Toast expects its non-GAAP gross profit from subscription services and financial technology solutions to be between $370 million and $380 million, reflecting a 32% – 35% growth year over year.
The company also expects adjusted EBITDA to be between $90 million and $100 million.
For the full year, Toast anticipates non-GAAP gross profit from subscription services and financial technology solutions to be between $1.395 billion and $1.405 billion, which represents a 32% – 33% increase year over year (prior view: 27% – 29% growth).
Adjusted EBITDA for the year is expected to be between $352 million and $362 million (prior view: $285 million – $305 million).
Price Action: TOST shares are trading higher by 11.6% to $36.47 premarket at last check Friday.
Photo via Shutterstock
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This article Toast Raises A Glass On Strong Q3 Earnings, Stock Soars originally appeared on Benzinga.com
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