Loading...
•
Dec 31, 2023
Toast Q4 2023 Earnings Report
Toast's Q4 2023 financial results were announced, revealing substantial growth in key areas.
Key Takeaways
Toast reported a strong Q4 2023 with a 35% increase in revenue to $1.0 billion, a 32% increase in Gross Payment Volume (GPV) to $33.7 billion, and a 35% increase in ARR to $1.2 billion. The company also saw improvements in profitability, with net loss decreasing to $(36) million and free cash flow increasing to $81 million.
ARR increased 35% year-over-year to $1.2 billion.
Gross Payment Volume (GPV) increased 32% year-over-year to $33.7 billion.
Total revenue grew 35% year-over-year to $1.0 billion.
Net loss improved to $(36) million compared to $(99) million in the same quarter last year.
Toast
Toast
Toast Revenue by Segment
Revenue by Segment
Subscription Services Revenue
CapyFin.comFinancial Technology Solutions Revenue
CapyFin.com Forward Guidance
For Q1 2024, Toast anticipates non-GAAP subscription services and financial technology solutions gross profit between $275 million and $285 million, with adjusted EBITDA between $15 million and $25 million. For the full year 2024, they expect non-GAAP subscription services and financial technology solutions gross profit between $1.3 billion and $1.32 billion, and adjusted EBITDA between $200 million and $220 million.
Positive Outlook
- Non-GAAP subscription services and financial technology solutions gross profit in the range of $275 million to $285 million (20-24% growth compared to Q1 2023)
- Adjusted EBITDA in the range of $15 million to $25 million
- Non-GAAP subscription services and financial technology solutions gross profit in the range of $1,300 million to $1,320 million (23-25% growth compared to 2023)
- Adjusted EBITDA in the range of $200 million to $220 million
- Anticipate GAAP Operating Income profit by first half 2025
Challenges Ahead
- Outlook 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.
- A reconciliation of these forward looking Non-GAAP measures to the corresponding GAAP measure is not available without unreasonable effort because of the inherent difficulty of accurately forecasting the occurrence and financial impact of the various adjusting items necessary for such reconciliations that have not yet occurred
- Company expects to incur restructuring and restructuring-related charges of approximately $45 to $55 million, primarily related to severance and severance-related costs and certain other costs related to facilities.
- The Company expects to complete the Plan by the end of fiscal year 2024.
- Toast’s Board of Directors approved a restructuring plan (the “Plan”) designed to promote overall operating expense efficiency, including a reduction in force that is expected to impact approximately 550 employees, as well as certain other actions to reorganize the Company’s facilities and operations.
Revenue & Expenses
Visualization of income flow from segment revenue to net income