CEO says Toast’s platform is ‘even more important’ for restaurants ‘operating in a challenging environment’
Toast Inc.’s stock climbed more than 10% in after-hours trading Thursday, after the maker of payment solutions and other technologies for restaurants raised its forecast for the full year.
The company reported a net loss of $54 million, or 11 cents a share, compared with a loss of $135 million, or 64 cents a share, in the year-prior quarter. Analysts tracked by FactSet were expecting a 12-cent loss per share.
Toast TOST, -1.68% posted a $33 million loss on the basis of adjusted earnings before interest, taxes, depreciation and amortization (Ebitda), whereas it earned $11 million on the metric a year before. Analysts were projecting a $54 million Ebitda loss.
Revenue increased to $675 million from $426 million, and came in above Toast’s outlook, which called for $635 million to $665 million. Analysts tracked by FactSet were expecting $651 million in revenue.
“Toast had another great quarter, sustaining our operating momentum with a record number of net new locations and strong revenue growth, both of which highlight the power of our industry-leading digital platform for restaurants,” Chief Executive Chris Comparato said in a statement. “With restaurants operating in a challenging environment, the benefits that Toast’s platform provides our customers are even more important, and true to our mission we are focused on helping restaurants adapt and thrive.”
For the third quarter, Toast executives expect $700 million to $730 million in revenue, along with a $30 million to $40 million loss on the basis of adjusted Ebitda. The FactSet consensus was for $665 million in revenue and a $45 million adjusted Ebitda loss.
Looking to the full year, executives now model $2.62 billion to $2.66 billion in revenue, above their prior forecast, which was for $2.50 billion to $2.55 billion. They also expect a $140 million to $160 million adjusted Ebitda loss, whereas their previous outlook called for a loss of $175 million to $195 million.
Shares of Toast have surged 43% over the past three months through Thursday’s close, as the S&P 500 SPX, -0.07% has added 6.9%.