Featured

Toast posts optimistic outlook, aiming to be restaurants’ ‘technology backbone’

Toast posts optimistic outlook, aiming to be restaurants' 'technology backbone'
Written by Publishing Team

Shares of Toast Inc. gained nearly 7% in after-hours trading Thursday after the maker of payments technology for the restaurant industry topped revenue expectations for its latest quarter and issued an optimism forecast.

The company logged a net loss of $23 million, or 20 cents a share, compared with a loss of $99 million, or 48 cents a share, in the year-earlier period. Analysts tracked by FactSet were expecting a loss of 13 cents a share.

Toast TOST,
+12.70%
reported a $45 million loss on the basis of earnings adjusted before interest, taxes, depreciation and amortization (Ebitda), whereas it logged positive adjusted Ebitda of $4 million in the year-prior quarter. The FactSet consensus was for a $58 million loss on the basis of adjusted Ebitda, which is a non-GAAP metric.

Toast’s revenue nearly doubled to $535 million from $282 million a year before, while analysts tracked by FactSet had been projecting $488 million.

Gross payment volume (GPV) increased to $17.8 billion from $9.0 billion a year earlier. The FactSet consensus was for $16.0 billion in GPV. The company saw its total locations grow to about 62,000 in the quarter, up almost 45% from a year earlier.

“The restaurant industry is still in the early days of its shift to digital,” Toast Chief Executive Chris Comparato said in a release, adding that Toast sees itself as “well positioned to be the restaurant industry’s technology backbone and capitalize on this significant market opportunity.” .”

For the June quarter, Toast anticipates revenue of $635 million to $665 million, while analysts tracked by FactSet had been projecting $574 million. The company also expects a $50 million to $60 million loss on the basis of adjusted Ebitda. The FactSet consensus was for a $58 million adjusted Ebitda loss.

Toast upped its outlook for the full year and now expects $2.50 billion to $2.55 billion in revenue along with a $175 million to $195 million adjusted Ebitda loss. Its prior forecast called for $2.349 billion to $2.409 million in revenue and a $200 million to $240 million loss on the basis of adjusted Ebitda.

Claudia Assis in San Francisco contributed to this report

.

About the author

Publishing Team