Toast Announces Third Quarter 2021 Financial Results

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Third quarter revenue grew 105% year-over-year to $486.4 million**

Annualized recurring run-rate (ARR) as of September 30, 2021 grew 77% year-over-year to $543.8 million

Third quarter gross payment volume (GPV) grew 123% year-over-year to $16.5 billion

Toast (NYSE: TOST), the all-in-one platform built for restaurants, today reported financial results for the third quarter ended September 30, 2021.

“In the third quarter, we delivered strong results across the board,” said Chris Comparato, CEO, Toast. “Toast’s performance is a result of our relentless focus on driving restaurant success with our all-in-one technology platform, unique go-to-market strategy and powerful business model. As restaurants invest more in technology to meet new expectations from guests, employees and partners, Toast is uniquely positioned to capture a growing share of its market opportunity.”

Financial Highlights for the Third Quarter of 2021

• Revenue for the third quarter of 2021 was $486.4 million, an increase of 105% from the third quarter of 2020.

• ARR as of September 30, 2021 was $543.8 million, an increase of 77% as compared to September 30, 2020.

• GPV for the third quarter of 2021 was $16.5 billion, an increase of 123% from the third quarter of 2020.

• Gross profit for the third quarter of 2021 was $83.3 million, an increase of 72% from the third quarter of 2020.

• Non-GAAP gross profit for the third quarter of 2021 was $88.5 million, an increase of 75% from the third quarter of 2020.

• Net loss for the third quarter of 2021 was $252.5 million, as compared to $62.6 million in the third quarter of 2020.

• Adjusted EBITDA for the third quarter of 2021 was $(9.7) million, as compared to Adjusted EBITDA of $(0.3) million in the third quarter of 2020.

• Net cash (used in) provided by operating activities for the third quarter of 2021 was $(17.2) million, as compared to $11.2 million for the third quarter of 2020.

• Free Cash Flow for the third quarter of 2021 was $(21.1) million, as compared to Free Cash Flow of $0.4 million for the third quarter of 2020.

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 fourth quarter ending December 31, 2021, Toast expects to report:

• Revenue in the range of $465 million to $495 million

• Adjusted EBITDA in the range of $(50) million to $(40) million

For the full year ending December 31, 2021, Toast expects to report:

• Revenue in the range of $1,655 million to $1,685 million

• Adjusted EBITDA in the range of $(46) million to $(36) 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, November 9, 2021 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.