Toast Announces First Quarter 2022 Financial Results

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.

Outlook

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.