Toast Announces First Quarter 2022 Financial Results
Added over 5,000 net new locations for the first quarter ever
First quarter subscription revenue growth accelerated to 103% year-over-year
Annualized recurring run-rate (ARR) as of March 31, 2022 grew 66% year-over-year
BOSTON, MA – May 12, 2022 – Toast (NYSE: TOST), the all-in-one digital technology platform built for restaurants, today reported financial results for the first quarter ended March 31, 2022.
“Toast delivered a strong first quarter, coming in well ahead of expectations across the board and adding a record number of net new locations to our platform as we continue to lead restaurants into a new digital era of hospitality,” said Chris Comparato, CEO, Toast. “The restaurant industry is still in the early days of its shift to digital. With our best-in-class technology platform and focus on providing restaurants everything they need to run their business, we believe we’re well positioned to be the restaurant industry’s technology backbone and capitalize on this significant market opportunity.”
Financial Highlights for the First Quarter of 2022
- Total locations increased nearly 45% year-over-year to approximately 62,000.
- Revenue grew 90% year-over year to $535 million.
- ARR as of March 31, 2022 was $637 million, up 66% year-over-year.
- Gross Payment Volume (GPV) increased 98% year-over-year to $17.8 billion.
- Gross profit of $89 million was up 29% year-over-year from Q1 2021. Non-GAAP gross profit grew 38% year-over year to $101 million.
- Net loss was $23 million in Q1 2022 compared to net loss of $99 million in Q1 2021. Adjusted EBITDA was $(45) million in Q1 2022 compared to Adjusted EBITDA of $4 million in Q1 2021.
- Net cash used in operating activities of $47 million and Free Cash Flow of $(50.0) million in Q1 2022, compared to $5 million and $(13.0) million, respectively, in Q1 2021.
For more information on the non-GAAP financial measures and key metrics discussed in this press release, please see the sections titled “Key Business Metrics” and “Non-GAAP Financial Measures,” as well as the reconciliations of non-GAAP financial measures to their nearest comparable GAAP financial measures at the end of this press release.
For the second quarter ending June 30, 2022, Toast expects to report:
- Revenue in the range of $635 million to $665 million
- Adjusted EBITDA in the range of $(60) million to $(50) million
For the full year ending December 31, 2022, Toast expects to report:
- Revenue in the range of $2,500 million to $2,550 million (up from $2,349 to $2,409 million)
- Adjusted EBITDA in the range of $(195) million to $(175) million (up from $(240) million to $(200) 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” below.
Recent Business Highlights
- Toast announced Toast for Quick Service, a completely customizable solution built specifically to serve quick service restaurants (QSR) of all sizes. With enhanced functionality from Toast’s restaurant grade hardware, Toast Mobile Order and PayTM, Kiosks, and more, QSRs benefit from easy, fast setup and a toolkit of solutions to help serve more guests faster, drive higher sales and improve profitability.
- Earlier this month, Toast announced Toast for Hotel Restaurants, a new solution designed to meet the unique needs of hotel restaurant operators. Through robust integrations with leading hotel property management systems (PMS), Toast will empower operators to streamline front and back of house operations and offer a better guest experience with the ability to seamlessly order and pay across the full range of hotel dining experiences.
- Toast renewed its strategic partnership with US Foods, a leading foodservice distributor that works with approximately 250,000 restaurants and foodservice operators across the US. Toast will continue to be a restaurant point-of-sale provider for US Foods.
Conference Call Information
Toast will host a live conference call at 5:00 p.m. Eastern Time on Thursday, May 12, 2022 to discuss the results. 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.
Toast is a cloud-based, all-in-one digital technology platform purpose-built for the entire restaurant community. Toast provides a single platform of software as a service, or SaaS, products and financial technology solutions that give restaurants everything they need to run their business across point of sale, operations, digital ordering and delivery, marketing and loyalty, and team management. By serving as the restaurant operating system across dine-in, takeout, and delivery channels, Toast helps restaurants streamline operations, increase revenue and deliver amazing guest experiences. For more information, visit www.toasttab.com.
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; cash flows; guidance on financial results for the second fiscal quarter and full year of 2022; statements about future operating results; the expectations of demand for Toast’s products and growth of its business; the growth rates in the markets in which Toast compete; Toast’s investments in technology and infrastructure; 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.
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, 2021, Toast’s Quarterly Report on Form 10-Q for the three months ended March 31, 2022 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.