Toast Shares Soar On Q2 Performance, Raised FY22 Guidance

Toast Inc TOST reported second-quarter Revenue increased by 58% year-over-year to $675 million, beating the consensus of $651.28 million.

EPS for the quarter was $(0.11), an improvement form $(0.64) in 2Q21.

Total locations increased over 40% Y/Y to ~68,000. ARR as of June 30, 2022, was $787 million, up 59% Y/Y.

Gross Payment Volume (GPV) increased 62% Y/Y to $23.3 billion. Subscription revenue grew 100% Y/Y.

Gross margin contracted by 415 bps to 16.7%. Loss from operation increased to $99 million, from $51 million a year ago.

Adjusted EBITDA loss was $33 million versus income of $11 million in 2Q21.

TOST’s net cash used in operating activities year-to-date totaled $(68) million, compared to cash generated $51 million a year ago.

3Q22 Outlook: Toast expects Revenue of $700 million to $730 million, vs. a consensus of 665.08 million; Adjusted EBITDA of $(40) million to $(30) million.

FY22 Outlook: The company expects revenue of $2.62 billion to $2.66 billion vs. consensus of $2.54 billion (an increase from $2.5 billion to $2.55 billion), and adjusted EBITDA in the range of $(160) million to $(140) million (up from $(195) million to $(175) million.

Price Action: TOAST shares are trading higher by 12.10% at $20.32 during the post-market session on Thursday.

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