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Mar 31, 2022

Toast Q1 2022 Earnings Report

Toast reported a strong first quarter, exceeding expectations and adding a record number of net new locations.

Key Takeaways

Toast's first quarter 2022 financial results showed significant growth, with revenue increasing by 90% year-over-year to $535 million. The company added over 5,000 net new locations and achieved a 66% year-over-year growth in ARR, reaching $637 million. Gross Payment Volume (GPV) also saw substantial growth, increasing by 98% year-over-year to $17.8 billion.

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.

Total Revenue
$535M
Previous year: $282M
+89.7%
EPS
-$0.2
Previous year: -$0.48
-58.3%
Gross Payment Volume
$17.8B
Previous year: $9B
+97.8%
Annual Recurring Run-Rate
$637M
Previous year: $384M
+65.9%
Gross Profit
$89M
Previous year: $69M
+29.0%
Cash and Equivalents
$757M
Previous year: $570M
+32.8%
Free Cash Flow
-$50M
Previous year: -$11M
+354.5%
Total Assets
$1.73B

Toast

Toast

Toast Revenue by Segment

Forward Guidance

For the second quarter ending June 30, 2022, Toast expects to report revenue in the range of $635 million to $665 million and 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 and Adjusted EBITDA in the range of $(195) million to $(175) million.

Positive Outlook

  • Revenue in the range of $635 million to $665 million for Q2 2022.
  • Adjusted EBITDA in the range of $(60) million to $(50) million for Q2 2022.
  • Revenue in the range of $2,500 million to $2,550 million for the full year 2022.
  • Adjusted EBITDA in the range of $(195) million to $(175) million for the full year 2022.
  • Full year revenue guidance increased from $2,349-$2,409 million to $2,500-$2,550 million.

Challenges Ahead

  • Adjusted EBITDA is expected to be negative for Q2 2022.
  • Adjusted EBITDA is expected to be negative for the full year 2022.
  • Net cash used in operating activities of $47 million.
  • Free Cash Flow of $(50.0) million.
  • Adjusted EBITDA was $(45) million in Q1 2022 compared to Adjusted EBITDA of $4 million in Q1 2021.

Revenue & Expenses

Visualization of income flow from segment revenue to net income