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BOSTON - Toast Inc. (NYSE:TOST) reported first quarter revenue growth of 24% year-over-year, though earnings missed estimates, as the restaurant technology company raised its full-year outlook.
TOST shares fell slightly, by 0.8%, in after hours trading Thursday.
Toast posted Q1 revenue of $1.34 billion, up from $1.08 billion a year ago but slightly below analyst expectations of $1.35 billion. Adjusted earnings per share came in at $0.09, missing the $0.18 estimate.
However, Toast boosted its 2025 guidance, now expecting non-GAAP subscription services and financial technology solutions gross profit of $1.78-$1.80 billion, up from its prior outlook of $1.73-$1.76 billion. The company also raised its full-year adjusted EBITDA forecast to $540-$560 million from $510-$530 million previously.
"Toast kicked off the year with a fantastic first quarter - we added over 6,000 net new locations, grew our recurring gross profit streams 37%, and delivered $133 million in Adjusted EBITDA," said Toast CEO and Co-Founder Aman Narang.
The company reported annualized recurring revenue (ARR) of $1.7 billion as of March 31, up 31% YoY. Total (EPA:TTEF) locations increased 25% to approximately 140,000.
For Q2, Toast expects non-GAAP subscription services and financial technology solutions gross profit of $435-$445 million and adjusted EBITDA of $130-$140 million.
Toast also announced it signed an agreement with Applebee’s to implement its technology across U.S. locations, representing the company’s largest deal to date.
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