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Sep 30, 2023

Toast Q3 2023 Earnings Report

Toast's Q3 2023 financial performance showed significant growth, driven by ARR and GPV increases, along with improved profitability.

Key Takeaways

Toast reported a strong Q3 2023, with revenue reaching $1,032 million, a 37% year-over-year increase. ARR grew by 40% to $1,218 million, and GPV increased by 34% to $33.7 billion. The company also saw a significant reduction in net loss, from $(98) million in Q3 2022 to $(31) million in Q3 2023, and achieved an adjusted EBITDA of $35 million compared to $(19) million in the same period last year.

ARR increased by 40% year-over-year, reaching $1,218 million.

GPV grew by 34% year-over-year to $33.7 billion.

Total locations increased 34% year-over-year to approximately 99,000, with net new locations of over 6,500 in Q3 2023.

Revenue increased 37% year-over-year to $1,032 million.

Total Revenue
$1.03B
Previous year: $752M
+37.2%
EPS
-$0.09
Previous year: -$0.19
-52.6%
Gross Payment Volume
$33.7B
Previous year: $25.2B
+33.7%
Annual Recurring Run-Rate
$1.22B
Previous year: $868M
+40.3%
Gross Profit
$226M
Previous year: $151M
+49.7%
Cash and Equivalents
$514M
Previous year: $644M
-20.2%
Free Cash Flow
$37M
Previous year: -$80M
-146.3%
Total Assets
$1.83B
Previous year: $1.74B
+5.3%

Toast

Toast

Toast Revenue by Segment

Forward Guidance

For the fourth quarter ending December 31, 2023, Toast expects to report revenue in the range of $1.00 billion to $1.03 billion and Adjusted EBITDA in the range of $5 million to $15 million. For the full year ending December 31, 2023, Toast expects to report revenue in the range of $3.83 billion to $3.86 billion and Adjusted EBITDA in the range of $38 million to $48 million.

Positive Outlook

  • Revenue in the range of $1.00 billion to $1.03 billion for Q4 2023.
  • Adjusted EBITDA in the range of $5 million to $15 million for Q4 2023.
  • Revenue in the range of $3.83 billion to $3.86 billion for the full year 2023.
  • Adjusted EBITDA in the range of $38 million to $48 million for the full year 2023.
  • Full year revenue outlook increased from $3.81 billion to $3.87 billion

Revenue & Expenses

Visualization of income flow from segment revenue to net income