Toast Stock Is Jumping Friday: What's Going On?

Toast, Inc. TOST shares are trading higher on Friday. The company reported earnings on Thursday after the market closed. Here’s what you need to know.

What To Know: Toast reported earnings per share of 9 cents cent, missing the consensus estimate of 12 cents. In addition, the company reported sales of $1.34 billion, in line with the consensus estimate.

The company announced annual reoccurring revenue of $1.7 billion, representing a 31% year-over-year increase. Furthermore, gross payment volume increased 22% to $42.2 billion.

“Toast kicked off the year with a fantastic first quarter – we added over 6,000 net new locations, grew our recurring gross profit streams¹ 37%, and delivered $133 million in Adjusted EBITDA,” said Toast CEO and Co-Founder Aman Narang.

“We continue to see strong momentum across both our core business as well as our new verticals in international, retail, and enterprise including marquee wins in Applebee’s and Topgolf. We are starting to see our scale and data across our 140,000 locations help our customers be more successful, which sets us up well as we continue to build out the platform and scale globally.”

Outlook: The company sees second-quarter adjusted subscription services and financial technology solutions gross profit between $435 million to $445 million.

Following the earnings report, Piper Sandler analyst Clarke Jeffries maintained a Neutral rating on Toast and raised the price target from $35 to $37.

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TOST Price Action: At the time of writing, Toast shares are trading 12.4% higher at $41.22, according to data from Benzinga Pro.

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