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Jun 30, 2024
Toast Q2 2024 Earnings Report
Toast's Q2 2024 financial performance was marked by strong growth and profitability, exceeding expectations with significant increases in ARR, GPV, and location count.
Key Takeaways
Toast reported a strong second quarter with significant growth in key areas. The company added approximately 8,000 net new locations, achieved GAAP profitability, and saw a 29% increase in Annualized Recurring Run-rate (ARR) to $1.5 billion. Gross Payment Volume (GPV) also increased by 26% year-over-year.
Added approximately 8,000 net new locations in Q2 2024.
ARR grew 29% year-over-year to $1.5 billion as of June 30, 2024.
Achieved GAAP operating income of $5 million in Q2 2024.
Net income was $14 million and Adjusted EBITDA was $92 million in Q2 2024.
Toast
Toast
Toast Revenue by Segment
Revenue by Segment
Subscription Services Revenue
CapyFin.comFinancial Technology Solutions Revenue
CapyFin.comHardware and Professional Services Revenue
CapyFin.comHardware and Professional Services Revenue
CapyFin.com Forward Guidance
For the third quarter ending September 30, 2024, Toast expects to report Non-GAAP subscription services and financial technology solutions gross profit in the range of $345 million to $355 million (23-27% growth compared to Q3 2023) and Adjusted EBITDA in the range of $70 million to $80 million. For the full year ending December 31, 2024, Toast expects to report Non-GAAP subscription services and financial technology solutions gross profit in the range of $1,340 million to $1,360 million (27-29% growth compared to 2023, up from 25-27% growth) and Adjusted EBITDA in the range of $285 million to $305 million (up from $250 million to $270 million).
Positive Outlook
- Non-GAAP subscription services and financial technology solutions gross profit in the range of $345 million to $355 million (23-27% growth compared to Q3 2023)
- Adjusted EBITDA in the range of $70 million to $80 million for Q3 2024
- Non-GAAP subscription services and financial technology solutions gross profit in the range of $1,340 million to $1,360 million (27-29% growth compared to 2023, up from 25-27% growth) for full year 2024
- Adjusted EBITDA in the range of $285 million to $305 million (up from $250 million to $270 million) for full year 2024
- Showing continued momentum with larger customers
Challenges Ahead
- Reconciliation of forward looking Non-GAAP measures to the corresponding GAAP measure is not available without unreasonable effort
- Inherent difficulty of accurately forecasting the occurrence and financial impact of the various adjusting items necessary for such reconciliations that have not yet occurred, are out of our control, or cannot be reasonably predicted
- Change in fair value of our warrant liability and stock-based compensation
- Company is unable to assess the probable significance of the unavailable information, which could have a material impact on its future GAAP financial results.
- 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.
Revenue & Expenses
Visualization of income flow from segment revenue to net income