BOSTON - Toast Inc. (NYSE: NYSE:TOST) shares soared 29% in after-hours trading on Thursday after the restaurant technology company reported better-than-expected third-quarter revenue and raised its full-year outlook.
The company posted revenue of $1.31 billion for the quarter ended September 30, surpassing analyst estimates of $1.29 billion. This represents a 26.5% increase from $1.03 billion in the same quarter last year. However, adjusted earnings per share came in at $0.07, missing the consensus forecast of $0.14.
Toast's CEO and Co-Founder Aman Narang highlighted the company's strong performance, stating, "Toast delivered a strong third quarter, adding approximately 7,000 net new locations, growing our recurring gross profit streams 35%, and achieving Adjusted EBITDA of $113 million."
The company reported gross payment volume (GPV) of $41.7 billion, up 24% YoY. Annualized recurring run-rate (ARR) grew 28% to $1.6 billion as of September 30, 2024.
Looking ahead, Toast raised its full-year 2024 guidance. The company now expects non-GAAP subscription services and financial technology solutions gross profit in the range of $1,395 million to $1,405 million, representing 32-33% growth compared to 2023. This is up from the previous guidance of 27-29% growth. Adjusted EBITDA is now projected to be between $352 million and $362 million, increased from the prior range of $285 million to $305 million.
For the fourth quarter, Toast forecasts non-GAAP subscription services and financial technology solutions gross profit of $370 million to $380 million and Adjusted EBITDA of $90 million to $100 million.
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