Toast Up After Adding a Record Number of New Locations in Q1

© Reuters

By Sam Boughedda

Investing.com -- Toast Inc (NYSE:TOST), the digital technology platform built for restaurants, gained Friday after the company beat earnings and revenue estimates when it reported its first-quarter results aftermarket Thursday.

The company said it added over 5,000 net new locations for the first quarter ever, resulting in total locations increasing nearly 45% year-over-year to around 62,000. Meanwhile, first-quarter subscription revenue growth accelerated to 103% year-over-year. 

Toast posted a loss per share of $0.20 on revenue of $535 million, wider than consensus estimates. Analysts polled by Investing.com expected a loss of $0.13 per share on revenue of $487.38 million. Revenue grew 90% year-over-year.

"Toast delivered a strong first quarter, coming in well ahead of expectations across the board and adding a record number of net new locations to our platform as we continue to lead restaurants into a new digital era of hospitality," said Chris Comparato, CEO of Toast. 

For the second quarter, Toast expects to report revenue in the range of $635 million to $665 million, while it raised full-year revenue guidance to between $2.5 billion to $2.55 billion from $2.35 billion to $2.4 billion.

"The restaurant industry is still in the early days of its shift to digital. With our best-in-class technology platform and focus on providing restaurants everything they need to run their business, we believe we’re well positioned to be the restaurant industry’s technology backbone and capitalize on this significant market opportunity," added Comparato.

Toast shares are up 7.1% Friday.