Added over 6,500 net new locations in third quarter 2023
Annualized recurring run-rate (ARR) as of September 30, 2023 grew 40% year-over-year
Third quarter net loss was $(31) million and Adjusted EBITDA was $35 million
BOSTON--(BUSINESS WIRE)-- Toast (NYSE: TOST), the all-in-one digital technology platform built for restaurants, today reported financial results for the third quarter ended September 30, 2023.
“Toast delivered solid results in the third quarter. ARR grew 40% to over $1.2 billion with our consistent go-to-market execution driving strong net location additions combined with continued ARPU growth. Our focus on balancing durable top line growth with efficiency led to our seventh consecutive quarter of Adjusted EBITDA margin expansion,” said Toast CEO Chris Comparato.
“Toast is well-positioned to be the trusted platform for restaurants of all sizes and types, remaining at the forefront of this generational opportunity to transform the industry with technology. On January 1, 2024, Aman Narang will become CEO of Toast as I shift focus to my Board role. Aman’s been an incredible partner and I’m confident he will lead Toast into its next era of growth, and continue to raise the bar on innovation to support the restaurant industry. I’m grateful to all our Toasters worldwide who continue to lead with humility and live our mission to empower the restaurant community to delight guests, do what they love, and thrive.”
Financial Highlights for the Third Quarter of 2023
For more information on the non-GAAP financial measures and key metrics discussed in this press release, please see the sections titled “Key Business Metrics” and “Non-GAAP Financial Measures,” as well as the reconciliations of non-GAAP financial measures to their nearest comparable GAAP financial measures at the end of this press release.
Outlook
For the fourth quarter ending December 31, 2023, Toast expects to report:
For the full year ending December 31, 2023, Toast expects to report:
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. See cautionary note regarding “Forward-looking Statements” below.
Recent Business Highlights
Conference Call Information
Toast will host a live conference call at 5:00 p.m. Eastern Time on Tuesday, November 7, 2023 to discuss the results. The live webcast of the conference call can be accessed through Toast’s investor relations website at http://investors.toasttab.com. A replay of the webcast will be available for a period of 90 days after the call.
Toast has used, and intends to continue to use, its Investor Relations website (http://investors.toasttab.com), as well as the Toast Newsroom (https://pos.toasttab.com/news), as a means of disclosing material non-public information and for complying with its disclosure obligations under Regulation FD. Information on or that can be accessed through Toast’s Investor Relations website, or that is contained in any website to which a hyperlink is provided herein is not part of this press release, and the inclusion of Toast’s Investor Relations website address, and any hyperlinks are only inactive textual references.
About Toast
Toast is a cloud-based, all-in-one digital technology platform purpose-built for the entire restaurant community. Toast provides a single platform of software as a service, or SaaS, products and financial technology solutions that give restaurants everything they need to run their business across point of sale, operations, digital ordering and delivery, marketing and loyalty, and team management. By serving as the restaurant operating system across dine-in, takeout, and delivery channels, Toast helps restaurants streamline operations, increase revenue and deliver amazing guest experiences. For more information, visit www.toasttab.com.
Forward-looking Statements
This press release contains “forward-looking statements,” within the meaning of Section 27A of the Securities Act of 1933, Section 21E of the Securities Exchange Act of 1934 and the Private Securities Litigation Reform Act of 1995. Forward-looking statements may be identified by the context of the statement and generally arise when Toast or its management is discussing its beliefs, estimates or expectations. Such statements generally include the words “believes,” “plans,” “intends,” “targets,” “may,” “could,” “should,” “will,” “expects,” “estimates,” “suggests,” “anticipates,” “outlook,” “continues,” or similar expressions. These statements are not historical facts or guarantees of future performance, but represent the beliefs of Toast and its management at the time the statements were made regarding future events which are subject to certain risks, uncertainties and other factors, many of which are outside Toast’s control. Actual results and outcomes may differ materially from what is expressed or forecast in such forward-looking statements. Forward-looking statements include, without limitation, statements about expected financial positions or growth; results of operations; cash flows; guidance on financial results for the fourth fiscal quarter and full year of 2023; future operating results; the expectations of demand for Toast’s products and growth of its business; the growth rates in the markets in which Toast competes; Toast’s investments in technology and infrastructure; success of Toast’s marketing and sales strategies; Toast’s leadership transition plan; the expected results of the launch of Toast Now, Toast for Cafes & Bakeries, new functionalities including the new POS experience, Catering Online Ordering and Restaurant Retail, and the benefits of such launch and functionalities on Toast’s business and operations; Toast’s ability to deliver innovative solutions; Toast’s ability to attract and retain customers both in the U.S. and globally; financing plans; business strategy; operating plans; competitive positions; and growth opportunities for existing products.
The forward-looking statements contained in this release are also subject to other risks and uncertainties, including those more fully described in Toast’s filings with the Securities and Exchange Commission (“SEC”), including in the sections entitled “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations'' in Toast’s Annual Report on Form 10-K for the year ended December 31, 2022, Toast’s Quarterly Report on Form 10-Q for the three months ended September 30, 2023 that will be filed following this earnings release, and Toast’s subsequent SEC filings. Toast can give no assurance that the plans, intentions, expectations or strategies as reflected in or suggested by those forward-looking statements will be attained or achieved. The forward-looking statements in this release are based on information available to Toast as of the date hereof, and Toast disclaims any obligation to update any forward-looking statements, except as required by law. These forward-looking statements should not be relied upon as representing Toast’s views as of any date subsequent to the date of this press release.
TOAST, INC. CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (unaudited) (in millions, except share and per share amounts) | ||||||||||||||||
|
|
|
|
| ||||||||||||
|
| Three Months Ended September 30, |
| Nine Months Ended September 30, | ||||||||||||
|
|
| 2023 |
|
|
| 2022 |
|
|
| 2023 |
|
|
| 2022 |
|
Revenue: |
|
|
|
|
|
|
| |||||||||
Subscription services | $ | 131 |
|
| $ | 90 |
|
| $ | 358 |
|
| $ | 230 |
| |
Financial technology solutions |
| 856 |
|
|
| 628 |
|
|
| 2,338 |
|
|
| 1,628 |
| |
Hardware |
| 34 |
|
|
| 27 |
|
|
| 106 |
|
|
| 86 |
| |
Professional services |
| 11 |
|
|
| 7 |
|
|
| 27 |
|
|
| 19 |
| |
Total revenue |
| 1,032 |
|
|
| 752 |
|
|
| 2,829 |
|
|
| 1,963 |
| |
Costs of revenue: |
|
|
|
|
|
|
| |||||||||
Subscription services |
| 43 |
|
|
| 29 |
|
|
| 118 |
|
|
| 81 |
| |
Financial technology solutions |
| 674 |
|
|
| 494 |
|
|
| 1,828 |
|
|
| 1,289 |
| |
Hardware |
| 58 |
|
|
| 52 |
|
|
| 181 |
|
|
| 165 |
| |
Professional services |
| 30 |
|
|
| 25 |
|
|
| 90 |
|
|
| 71 |
| |
Amortization of acquired intangible assets |
| 1 |
|
|
| 1 |
|
|
| 4 |
|
|
| 4 |
| |
Total costs of revenue |
| 806 |
|
|
| 601 |
|
|
| 2,221 |
|
|
| 1,610 |
| |
Gross profit |
| 226 |
|
|
| 151 |
|
|
| 608 |
|
|
| 353 |
| |
Operating expenses: |
|
|
|
|
|
|
| |||||||||
Sales and marketing |
| 100 |
|
|
| 84 |
|
|
| 299 |
|
|
| 232 |
| |
Research and development |
| 87 |
|
|
| 74 |
|
|
| 264 |
|
|
| 203 |
| |
General and administrative |
| 98 |
|
|
| 78 |
|
|
| 276 |
|
|
| 203 |
| |
Total operating expenses |
| 285 |
|
|
| 236 |
|
|
| 839 |
|
|
| 638 |
| |
Loss from operations |
| (59 | ) |
|
| (85 | ) |
|
| (231 | ) |
|
| (285 | ) | |
Other income (expense): |
|
|
|
|
|
|
| |||||||||
Interest income, net |
| 10 |
|
|
| 3 |
|
|
| 27 |
|
|
| 5 |
| |
Change in fair value of warrant liability |
| 18 |
|
|
| (21 | ) |
|
| (5 | ) |
|
| 102 |
| |
Other income (expense), net |
| — |
|
|
| 1 |
|
|
| — |
|
|
| (1 | ) | |
Loss before benefit (provision) for income taxes |
| (31 | ) |
|
| (102 | ) |
|
| (209 | ) |
|
| (179 | ) | |
Benefit (provision) for income taxes |
| — |
|
|
| 4 |
|
|
| (1 | ) |
|
| 4 |
| |
Net loss | $ | (31 | ) |
| $ | (98 | ) |
| $ | (210 | ) |
| $ | (175 | ) | |
Net loss per share attributable to common stockholders: |
|
|
|
|
|
|
| |||||||||
Basic | $ | (0.06 | ) |
| $ | (0.19 | ) |
| $ | (0.40 | ) |
| $ | (0.34 | ) | |
Diluted | $ | (0.09 | ) |
| $ | (0.19 | ) |
| $ | (0.40 | ) |
| $ | (0.54 | ) | |
Weighted average shares used in computing net loss per share: |
|
|
|
|
|
|
| |||||||||
Basic |
| 535,219,532 |
|
|
| 513,719,867 |
|
|
| 529,535,807 |
|
|
| 509,507,937 |
| |
Diluted |
| 536,534,932 |
|
|
| 513,719,867 |
|
|
| 529,535,807 |
|
|
| 510,000,352 |
|
TOAST, INC. CONDENSED CONSOLIDATED BALANCE SHEETS (unaudited) (in millions, except share and per share amounts) | ||||||||
|
|
|
|
| ||||
|
| September 30, 2023 |
| December 31, 2022 | ||||
Assets: |
|
|
| |||||
Current assets: |
|
|
| |||||
Cash and cash equivalents | $ | 514 |
|
| $ | 547 |
| |
Marketable securities |
| 516 |
|
|
| 474 |
| |
Accounts receivable, net |
| 95 |
|
|
| 77 |
| |
Inventories, net |
| 98 |
|
|
| 110 |
| |
Deferred costs, net |
| 56 |
|
|
| 44 |
| |
Prepaid expenses and other current assets |
| 201 |
|
|
| 155 |
| |
Total current assets |
| 1,480 |
|
|
| 1,407 |
| |
Property and equipment, net |
| 69 |
|
|
| 61 |
| |
Operating lease right-of-use assets |
| 23 |
|
|
| 77 |
| |
Intangible assets, net |
| 28 |
|
|
| 29 |
| |
Goodwill |
| 113 |
|
|
| 107 |
| |
Restricted cash |
| 49 |
|
|
| 28 |
| |
Deferred costs, non-current |
| 59 |
|
|
| 38 |
| |
Other non-current assets |
| 13 |
|
|
| 14 |
| |
Total non-current assets |
| 354 |
|
|
| 354 |
| |
Total assets | $ | 1,834 |
|
| $ | 1,761 |
| |
Liabilities and Stockholders’ Equity: |
|
|
| |||||
Current liabilities: |
|
|
| |||||
Accounts payable | $ | 27 |
|
| $ | 30 |
| |
Operating lease liabilities |
| 10 |
|
|
| 14 |
| |
Deferred revenue |
| 38 |
|
|
| 39 |
| |
Accrued expenses and other current liabilities |
| 499 |
|
|
| 413 |
| |
Total current liabilities |
| 574 |
|
|
| 496 |
| |
Warrants to purchase common stock |
| 72 |
|
|
| 68 |
| |
Operating lease liabilities, non-current |
| 22 |
|
|
| 80 |
| |
Deferred revenue, non-current |
| 14 |
|
|
| 7 |
| |
Other long-term liabilities |
| 3 |
|
|
| 12 |
| |
Total liabilities |
| 685 |
|
|
| 663 |
| |
Commitments and Contingencies |
|
|
| |||||
Stockholders’ Equity: |
|
|
| |||||
Preferred stock- par value $0.000001; 100,000,000 shares authorized, no shares issued or outstanding |
| — |
|
|
| — |
| |
Class A common stock, $0.000001 par value- 7,000,000,000 shares authorized, 423,611,258 and 353,094,009 shares issued and outstanding as of September 30, 2023 and December 31, 2022, respectively |
| — |
|
|
| — |
| |
Class B common stock, $0.000001 par value- 700,000,000 shares authorized, 114,944,182 and 169,933,289 shares issued and outstanding as of September 30, 2023 and December 31, 2022, respectively |
| — |
|
|
| — |
| |
Treasury stock, at cost- 225,000 shares outstanding at September 30, 2023 and December 31, 2022 |
| — |
|
|
| — |
| |
Accumulated other comprehensive loss |
| (2 | ) |
|
| (2 | ) | |
Additional paid-in capital |
| 2,738 |
|
|
| 2,477 |
| |
Accumulated deficit |
| (1,587 | ) |
|
| (1,377 | ) | |
Total stockholders’ equity |
| 1,149 |
|
|
| 1,098 |
| |
Total liabilities and stockholders’ equity | $ | 1,834 |
|
| $ | 1,761 |
|
TOAST, INC. CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (unaudited)(in millions) | ||||||||||||||||
|
|
|
|
| ||||||||||||
|
| Three Months Ended September 30, |
| Nine Months Ended September 30, | ||||||||||||
|
|
| 2023 |
|
|
| 2022 |
|
|
| 2023 |
|
|
| 2022 |
|
Cash flows from operating activities: |
|
|
|
|
|
|
| |||||||||
Net loss | $ | (31 | ) |
| $ | (98 | ) |
| $ | (210 | ) |
| $ | (175 | ) | |
Adjustments to reconcile net loss to net cash provided by (used in) operating activities: |
|
|
|
|
|
|
| |||||||||
Depreciation and amortization |
| 8 |
|
|
| 6 |
|
|
| 22 |
|
|
| 18 |
| |
Stock-based compensation expense |
| 71 |
|
|
| 57 |
|
|
| 206 |
|
|
| 167 |
| |
Amortization of deferred costs |
| 16 |
|
|
| 12 |
|
|
| 44 |
|
|
| 32 |
| |
Change in fair value of warrant liability |
| (18 | ) |
|
| 21 |
|
|
| 5 |
|
|
| (102 | ) | |
Credit loss expense |
| 19 |
|
|
| 11 |
|
|
| 44 |
|
|
| 18 |
| |
Stock-based charitable contribution expense |
| 10 |
|
|
| — |
|
|
| 10 |
|
|
| — |
| |
Asset impairments |
| — |
|
|
| — |
|
|
| 15 |
|
|
| — |
| |
Other |
| (2 | ) |
|
| (2 | ) |
|
| (14 | ) |
|
| 1 |
| |
Changes in operating assets and liabilities: |
|
|
|
|
|
|
| |||||||||
Accounts receivable, net |
| 18 |
|
|
| (15 | ) |
|
| (24 | ) |
|
| (30 | ) | |
Prepaid expenses and other current assets |
| (4 | ) |
|
| (6 | ) |
|
| (7 | ) |
|
| (17 | ) | |
Deferred costs, net |
| (27 | ) |
|
| (18 | ) |
|
| (77 | ) |
|
| (53 | ) | |
Inventories, net |
| 9 |
|
|
| (33 | ) |
|
| 13 |
|
|
| (53 | ) | |
Accounts payable |
| (15 | ) |
|
| (8 | ) |
|
| (3 | ) |
|
| (12 | ) | |
Accrued expenses and other current liabilities |
| (7 | ) |
|
| 15 |
|
|
| 17 |
|
|
| 91 |
| |
Deferred revenue |
| (1 | ) |
|
| (5 | ) |
|
| 6 |
|
|
| (9 | ) | |
Operating lease right-of-use assets and operating lease liabilities |
| (1 | ) |
|
| — |
|
|
| — |
|
|
| — |
| |
Other assets and liabilities |
| 2 |
|
|
| (6 | ) |
|
| (4 | ) |
|
| (13 | ) | |
Net cash provided by (used in) operating activities |
| 47 |
|
|
| (69 | ) |
|
| 43 |
|
|
| (137 | ) | |
Cash flows from investing activities: |
|
|
|
|
|
|
| |||||||||
Cash paid for acquisition, net of cash acquired |
| — |
|
|
| (46 | ) |
|
| (9 | ) |
|
| (46 | ) | |
Capitalized software |
| (10 | ) |
|
| (5 | ) |
|
| (27 | ) |
|
| (10 | ) | |
Purchases of property and equipment |
| — |
|
|
| (6 | ) |
|
| (4 | ) |
|
| (13 | ) | |
Purchases of marketable securities |
| (128 | ) |
|
| (47 | ) |
|
| (479 | ) |
|
| (187 | ) | |
Proceeds from the sale of marketable securities |
| 10 |
|
|
| 9 |
|
|
| 23 |
|
|
| 41 |
| |
Maturities of marketable securities |
| 99 |
|
|
| 112 |
|
|
| 414 |
|
|
| 190 |
| |
Other investing activities |
| (2 | ) |
|
| — |
|
|
| (3 | ) |
|
| — |
| |
Net cash provided by (used in) investing activities |
| (31 | ) |
|
| 17 |
|
|
| (85 | ) |
|
| (25 | ) | |
Cash flows from financing activities: |
|
|
|
|
|
|
| |||||||||
Change in customer funds obligations, net |
| (4 | ) |
|
| (11 | ) |
|
| 27 |
|
|
| 26 |
| |
Proceeds from issuance of common stock |
| 16 |
|
|
| 5 |
|
|
| 31 |
|
|
| 12 |
| |
Payment of contingent consideration |
| — |
|
|
| — |
|
|
| — |
|
|
| (2 | ) | |
Net cash provided by (used in) financing activities |
| 12 |
|
|
| (6 | ) |
|
| 58 |
|
|
| 36 |
| |
Net increase (decrease) in cash, cash equivalents, cash held on behalf of customers and restricted cash |
| 28 |
|
|
| (58 | ) |
|
| 16 |
|
|
| (126 | ) | |
Effect of exchange rate changes on cash and cash equivalents and restricted cash |
| — |
|
|
| (1 | ) |
|
| (1 | ) |
|
| (1 | ) | |
Cash, cash equivalents, cash held on behalf of customers and restricted cash at beginning of period |
| 622 |
|
|
| 783 |
|
|
| 635 |
|
|
| 851 |
| |
Cash, cash equivalents, cash held on behalf of customers and restricted cash at end of period | $ | 650 |
|
| $ | 724 |
|
| $ | 650 |
|
| $ | 724 |
| |
Reconciliation of cash, cash equivalents, cash held on behalf of customers and restricted cash |
|
|
|
|
|
|
| |||||||||
Cash and cash equivalents | $ | 514 |
|
| $ | 644 |
|
| $ | 514 |
|
| $ | 644 |
| |
Cash held on behalf of customers |
| 87 |
|
|
| 61 |
|
|
| 87 |
|
|
| 61 |
| |
Restricted cash |
| 49 |
|
|
| 19 |
|
|
| 49 |
|
|
| 19 |
| |
Total cash, cash equivalents, cash held on behalf of customers and restricted cash | $ | 650 |
|
| $ | 724 |
|
| $ | 650 |
|
| $ | 724 |
| |
|
|
|
|
|
|
|
| |||||||||
TOAST, INC. CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (unaudited)(in millions) | ||||||||||||||||
| Three Months Ended September 30, |
| Nine Months Ended September 30, | |||||||||||||
|
| 2023 |
|
|
| 2022 |
|
|
| 2023 |
|
|
| 2022 |
| |
Supplemental disclosure of non-cash investing and financing activities: |
|
|
|
|
|
|
| |||||||||
Issuance of Class B common stock upon exercise of common stock warrants |
| — |
|
|
| — |
|
|
| 1 |
|
|
| 18 |
|
Non-GAAP Financial Measures
In this press release, Toast refers to non-GAAP financial measures that are derived on the basis of methodologies other than in accordance with United States generally accepted accounting principles (“GAAP”). Toast uses certain non-GAAP financial measures, as described below, to understand and evaluate its core operating performance. These non-GAAP financial measures, which may be different than similarly-titled measures used by other companies, are presented to enhance investors’ overall understanding of Toast’s financial performance and should not be considered substitutes for, or superior to, the financial information prepared and presented in accordance with GAAP. Toast believes that these non-GAAP financial measures provide useful information about its financial performance, enhance the overall understanding of its past performance and future prospects, and allow for greater transparency with respect to important metrics used by Toast’s management for financial and operational decision-making.
In the tables below, Toast has provided reconciliations of these non-GAAP financial measures to the most directly comparable financial measures calculated and presented in accordance with GAAP. These non-GAAP financial measures should not be considered substitutes for financial measures calculated in accordance with GAAP, and the financial results that Toast calculates and presents in the table in accordance with GAAP, as well as the corresponding reconciliations from those results, should be carefully evaluated.
The following are the non-GAAP financial measures referenced in this press release and presented in the tables below:
Adjusted EBITDA, Non-GAAP Costs of Revenue, Non-GAAP Gross Profit, Non-GAAP Sales and Marketing Expenses, Non-GAAP Research and Development Expenses, Non-GAAP General and Administrative Expenses, and Free Cash Flow do not purport to represent profitability and liquidity measures as defined in accordance with GAAP. These measures are provided to investors and others to improve the quarter-to-quarter and year-to-year comparability of Toast's financial results and to ensure that investors understand the information Toast uses to evaluate the performance of its businesses.
Our definitions may differ from the definitions used by other companies and therefore comparability may be limited. In addition, other companies may not publish these or similar metrics. Further, these metrics have certain limitations since they do not include the impact of certain expenses and cash flows that are reflected in our Consolidated Statements of Operations and Consolidated Statements of Cash Flows. Thus, our Adjusted EBITDA, Non-GAAP Costs of Revenue, Non-GAAP Gross Profit, Non-GAAP Sales and Marketing Expenses, Non-GAAP Research and Development Expenses, Non-GAAP General and Administrative Expenses, and Free Cash Flow should be considered in addition to, not as substitutes for, or in isolation from, measures prepared in accordance with GAAP.
Key Business Metrics
In addition, Toast also uses the following key business metrics to help it evaluate its business, identify trends affecting its business, formulate business plans, and make strategic decisions:
Locations
We define a live location, or Location, as a unique location that has used Toast Point of Sale to record transaction volumes above a minimum threshold, and has not been marked as a churned location as of the date of determination. A Location can use Toast payment services, which we refer to as a Toast Processing Location, or for select enterprise customers, not use Toast’s payment services, which we refer to as a Non-Toast Processing Location. Customers of legacy solutions provided by companies that we have acquired, that do not use Toast Point of Sale, are not included in our Location count.
Summary of Key Business Metrics and Non-GAAP Results (unaudited) | ||||||||||||||||||
| Three Months Ended September 30, |
|
|
| Nine Months Ended September 30, |
|
| |||||||||||
(dollars in billions) | 2023 |
| 2022 |
| % Growth |
| 2023 |
| 2022 |
| % Growth | |||||||
Gross Payment Volume (GPV) | $ | 33.7 | $ | 25.2 | 34 | % | $ | 92.5 | $ | 66.3 | 40 | % | ||||||
|
| As of September 30, |
| |||||||||||||||
(dollars in millions) |
| 2023 | 2022 | % Growth | ||||||||||||||
Annualized Recurring Run-Rate (ARR) | $ | 1,218 | $ | 868 | 40 | % | ||||||||||||
Adjusted EBITDA | Three Months Ended September 30, |
| Nine Months Ended September 30, | |||||||||||||
(dollars in millions) |
| 2023 |
|
|
| 2022 |
|
|
| 2023 |
|
|
| 2022 |
| |
Net loss | $ | (31 | ) |
| $ | (98 | ) |
| $ | (210 | ) |
| $ | (175 | ) | |
Stock-based compensation expense and related payroll tax |
| 74 |
|
|
| 58 |
|
|
| 216 |
|
|
| 170 |
| |
Depreciation and amortization |
| 9 |
|
|
| 6 |
|
|
| 22 |
|
|
| 18 |
| |
Interest income, net |
| (10 | ) |
|
| (3 | ) |
|
| (27 | ) |
|
| (5 | ) | |
Change in fair value of warrant liability |
| (18 | ) |
|
| 21 |
|
|
| 5 |
|
|
| (102 | ) | |
Termination of leases |
| 1 |
|
|
| 1 |
|
|
| 14 |
|
|
| (1 | ) | |
Stock-based charitable contribution expense |
| 10 |
|
|
| — |
|
|
| 10 |
|
|
| — |
| |
Acquisition expenses |
| — |
|
|
| — |
|
|
| 1 |
|
|
| 2 |
| |
Provision (benefit) for income taxes |
| — |
|
|
| (4 | ) |
|
| 1 |
|
|
| (4 | ) | |
Adjusted EBITDA | $ | 35 |
|
| $ | (19 | ) |
| $ | 32 |
|
| $ | (97 | ) | |
Sums may not equal totals due to rounding. |
|
|
|
|
|
|
| |||||||||
Non-GAAP Costs of Revenue | Three Months Ended September 30, |
| Nine Months Ended September 30, | |||||||||||||
(dollars in millions) |
| 2023 |
|
|
| 2022 |
|
|
| 2023 |
|
|
| 2022 |
| |
Costs of revenue | $ | 806 |
|
| $ | 601 |
|
| $ | 2,221 |
|
| $ | 1,610 |
| |
Stock-based compensation expense and related payroll tax |
| 12 |
|
|
| 9 |
|
|
| 34 |
|
|
| 25 |
| |
Depreciation and amortization |
| 6 |
|
|
| 4 |
|
|
| 16 |
|
|
| 12 |
| |
Non-GAAP costs of revenue | $ | 788 |
|
| $ | 588 |
|
| $ | 2,171 |
|
| $ | 1,573 |
| |
Sums may not equal totals due to rounding. |
|
|
|
|
|
|
| |||||||||
Non-GAAP Gross Profit | Three Months Ended September 30, |
| Nine Months Ended September 30, | |||||||||||||
(dollars in millions) |
| 2023 |
|
|
| 2022 |
|
|
| 2023 |
|
|
| 2022 |
| |
Gross profit | $ | 226 |
|
| $ | 151 |
|
| $ | 608 |
|
| $ | 353 |
| |
Stock-based compensation expense and related payroll tax |
| 12 |
|
|
| 9 |
|
|
| 34 |
|
|
| 25 |
| |
Depreciation and amortization |
| 6 |
|
|
| 4 |
|
|
| 16 |
|
|
| 12 |
| |
Non-GAAP gross profit | $ | 244 |
|
| $ | 164 |
|
| $ | 658 |
|
| $ | 390 |
| |
Sums may not equal totals due to rounding. |
|
|
|
|
|
|
| |||||||||
Non-GAAP Sales and Marketing Expenses | Three Months Ended September 30, |
| Nine Months Ended September 30, | |||||||||||||
(dollars in millions) |
| 2023 |
|
|
| 2022 |
|
|
| 2023 |
|
|
| 2022 |
| |
Sales and marketing expenses | $ | 100 |
|
| $ | 84 |
|
| $ | 299 |
|
| $ | 232 |
| |
Stock-based compensation expense and related payroll tax |
| 16 |
|
|
| 12 |
|
|
| 47 |
|
|
| 38 |
| |
Depreciation and amortization |
| 1 |
|
|
| 1 |
|
|
| 2 |
|
|
| 2 |
| |
Non-GAAP sales and marketing expenses | $ | 83 |
|
| $ | 71 |
|
| $ | 250 |
|
| $ | 192 |
| |
Non-GAAP Research and Development Expenses | Three Months Ended September 30, |
| Nine Months Ended September 30, | |||||||||||||
(dollars in millions) |
| 2023 |
|
|
| 2022 |
|
|
| 2023 |
|
|
| 2022 |
| |
Research and development expenses | $ | 87 |
|
| $ | 74 |
|
| $ | 264 |
|
| $ | 203 |
| |
Stock-based compensation expense and related payroll tax |
| 24 |
|
|
| 19 |
|
|
| 72 |
|
|
| 53 |
| |
Depreciation and amortization |
| 1 |
|
|
| — |
|
|
| 2 |
|
|
| 1 |
| |
Non-GAAP research and development expenses | $ | 62 |
|
| $ | 55 |
|
| $ | 190 |
|
| $ | 149 |
| |
Non-GAAP General and Administrative Expenses | Three Months Ended September 30, |
| Nine Months Ended September 30, | |||||||||||||
(dollars in millions) |
| 2023 |
|
|
| 2022 |
|
|
| 2023 |
|
|
| 2022 |
| |
General and administrative expenses | $ | 98 |
|
| $ | 78 |
|
| $ | 276 |
|
| $ | 203 |
| |
Stock-based compensation expense and related payroll tax |
| 22 |
|
|
| 19 |
|
|
| 64 |
|
|
| 54 |
| |
Depreciation and amortization |
| 1 |
|
|
| 1 |
|
|
| 2 |
|
|
| 2 |
| |
Termination of leases |
| 1 |
|
|
| 1 |
|
|
| 14 |
|
|
| (1 | ) | |
Stock-based charitable contribution expense |
| 10 |
|
|
| — |
|
|
| 10 |
|
|
| — |
| |
Acquisition expenses |
| — |
|
|
| — |
|
|
| 1 |
|
|
| 2 |
| |
Non-GAAP general and administrative expenses | $ | 64 |
|
| $ | 57 |
|
| $ | 185 |
|
| $ | 146 |
| |
Free Cash Flow | Three Months Ended September 30, |
| Nine Months Ended September 30, | |||||||||||||
(dollars in millions) |
| 2023 |
|
|
| 2022 |
|
|
| 2023 |
|
|
| 2022 |
| |
Net cash provided by (used in) operating activities | $ | 47 |
|
| $ | (69 | ) |
| $ | 43 |
|
| $ | (137 | ) | |
Purchases of property and equipment |
| — |
|
|
| (6 | ) |
|
| (4 | ) |
|
| (13 | ) | |
Capitalized software |
| (10 | ) |
|
| (5 | ) |
|
| (27 | ) |
|
| (10 | ) | |
Free Cash Flow | $ | 37 |
|
| $ | (80 | ) |
| $ | 12 |
|
| $ | (160 | ) |
TOST-FIN
View source version on businesswire.com: https://www.businesswire.com/news/home/20231107160903/en/
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Source: Toast, Inc.