Toast Announces Fourth Quarter and Full Year 2021 Financial Results

Toast Announces Fourth Quarter and Full Year 2021 Financial Results

Fourth quarter revenue grew 111% year-over-year to $512 million

Annualized recurring run-rate (ARR) as of December 31, 2021 grew 74% year-over-year to $568 million

Fourth quarter gross payment volume (GPV) grew 125% year-over-year to $17 billion

BOSTON, MA – February 15, 2022 – Toast (NYSE: TOST), the all-in-one digital technology platform built for restaurants, today reported financial results for the fourth quarter and fiscal year ended December 31, 2021.

“The restaurant industry was tested again in 2021, but as evidenced by our growth there is tremendous demand for the Toast platform as restaurant operators navigate the new normal,” said Chris Comparato, CEO, Toast. “We had a record quarter and year as a result of strong focus on our customers and consistent execution. Restaurants of all sizes run their business on Toast and we are committed to being the trusted platform of choice for the restaurant industry."

Financial Highlights for the Fourth Quarter of 2021

• Revenue for the fourth quarter of 2021 was $512 million, an increase of 111% from the fourth quarter of 2020.

• ARR as of December 31, 2021 was $568 million, an increase of 74% as compared to December 31, 2020.

• GPV for the fourth quarter of 2021 was $17 billion, an increase of 125% from the fourth quarter of 2020.

• Gross profit for the fourth quarter of 2021 was $73 million, an increase of 55% from the fourth quarter of 2020.

• Non-GAAP gross profit for the fourth quarter of 2021 was $82 million, an increase of 52% from the fourth quarter of 2020.

• Net income for the fourth quarter of 2021 was $2 million, as compared to net loss of $61 million in the fourth quarter of 2020.

• Adjusted EBITDA for the fourth quarter of 2021 was $(45) million, as compared to $(7) million in the fourth quarter of 2020.

• Net cash used in operating activities for the fourth quarter of 2021 was $(32) million, as compared to $(28) million for the fourth quarter of 2020.

• Free Cash Flow for the fourth quarter of 2021 was $(34) million, as compared to $(32) million for the fourth quarter of 2020.

Financial Highlights for the Full Year 2021

• Revenue for the full year 2021 was $1,705 million, an increase of 107% from the prior fiscal year.

• GPV for the full year 2021 was $57 billion, an increase of 124% from the prior fiscal year.

• Gross profit for the full year 2021 was $314 million, an increase of 124% from the prior fiscal year.

• Non-GAAP gross profit for the full year 2021 was $341 million, an increase of 114% from the prior fiscal year.

• Net loss for the full year 2021 was $487 million, as compared to net loss of $248 million for the prior fiscal year.

• Adjusted EBITDA for the full year 2021 was $(42) million, as compared to $(94) million for the prior fiscal year.

• Net cash provided by (used in) operating activities for the full year 2021 was $2 million, as compared to $(125) million for the prior fiscal year.

• Free Cash Flow for the full year 2021 was $(17) million, as compared to $(161) million for the prior fiscal year.

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 first quarter ending March 31, 2022, Toast expects to report:

• Revenue in the range of $469 million to $499 million

• Adjusted EBITDA in the range of $(65) million to $(55) million

For the full year ending December 31, 2022, Toast expects to report:

• Revenue in the range of $2,349 million to $2,409 million

• Adjusted EBITDA in the range of $(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. 

Conference Call Information

Toast will host a live video webcast at 5:00 p.m. Eastern Time on Tuesday, February 15, 2022 to discuss the results. The live video webcast 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.

Upcoming Conference Participation

Toast management will participate in the following investor conferences during the first quarter of fiscal 2022. Webcasts of company presentations can be found on Toast's Investor Relations website at https://investors.toasttab.com/overview/.

• Wolfe Fintech Forum on March 9, 2022 at 11:20-11:55am ET

• Morgan Stanley Technology, Media & Telecom Conference on Monday, March 7, 2022 at 2:30pm-3:00pm ET