When discussing Toast net worth, we need to look beyond just the numbers. Toast, Inc. has experienced significant revenue growth, particularly in its subscription services, which have been key to its financial success.
Today, we’ll explore the company’s financial performance, examining the revenue drivers and other key financial elements that define its success.
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Quick Facts
| FACT | DETAIL |
|---|---|
| Name | Toast, Inc. |
| Full Name | Toast, Inc. |
| Website | toasttab.com |
| Industry | SaaS and Financial Technology |
| Traded as | NYSE: TOST |
| ISIN | US89157U1088 |
| Founded | 2011 |
| Founders | Aman Narang, Steve Fredette, Jonathan Grimm |
| Country/Territory | United States |
| Headquarters | Boston, Massachusetts, USA |
| Chief Executive Officer | Aman Narang |
| Number of Employees | Over 5,000 |
| Market Cap | $16.14 billion (October 2024) |
| Total Assets | $2.155 billion |
| Total Equity | $1.283 billion |
| Revenue | $1.242 billion (Q2 2024) |
| Net Income | $14 million (Q2 2024) |
What is the Net Worth/Market Cap of Toast in 2024?
As of October 2024, Toast, Inc. holds a market cap of $16.14 billion. This positions the company as one of the prominent players in the financial technology and restaurant SaaS sectors.
In comparison to other companies within the same space, Toast’s valuation stands competitively, driven by its significant growth in revenue and key financial solutions offered to the restaurant industry.
For instance, while its market cap is lower than tech giants, it remains comparable to other innovative service providers.
Companies related to Toast include:
- Square, Inc.
- Lightspeed
- Clover
- Upserve
- ToastTab competitors
- Olo
- NCR Corporation
- TouchBistro
If you’re interested in seeing how Toast ranks among other companies, visit this list of top companies.
Toast Financial Performance Overview
Revenue Growth and Key Financial Drivers
Toast, Inc. has been on a remarkable journey of financial growth. In Q2 2024, Toast reported total revenue of $1.242 billion, up from $978 million in the same quarter of the previous year.
A major driver of this growth has been the company’s focus on its subscription services and financial technology solutions, which cater to the unique needs of the restaurant industry.
The Gross Payment Volume (GPV) also saw a notable increase, reaching $40.5 billion.
One of the key elements driving Toast’s revenue growth is its integrated SaaS platform.
This platform helps restaurants manage everything from point of sale to operations, digital ordering, marketing, and loyalty programs.
With an increase in the number of net new locations using Toast’s services—up by 8,000 new locations in Q2 2024—the company’s Annual Recurring Revenue (ARR) rose to $1.5 billion, a 29% year-over-year growth.
Subscription Services Impact on Financial Stability
Toast’s subscription services are a critical component of its revenue model. In Q2 2024, subscription services accounted for $166 million of total revenue, a 37% increase from Q2 2023.
This segment of the business supports long-term financial stability because it generates recurring revenue.
With an increasing number of restaurants transitioning to Toast’s SaaS products, this segment is expected to grow steadily.
The company’s Annual Recurring Revenue (ARR) was fueled by subscription services, which are adopted by a wide range of businesses in the restaurant industry, including dine-in, takeout, and delivery operations.
This has helped Toast, Inc. scale both in the U.S. and internationally.
Financial Technology Solutions Growth
Another key driver of Toast’s financial performance has been its financial technology solutions.
In Q2 2024, revenue from these solutions reached $1.023 billion, reflecting a 27% increase compared to Q2 2023.
Toast’s financial technology includes payment processing solutions, which handle the Gross Payment Volume (GPV) of $40.5 billion, a 26% year-over-year increase.
The company’s innovative use of AI-powered tools such as the AI-Powered Marketing Assistant and Benchmarking features have significantly boosted the adoption of its financial technology solutions, contributing to revenue growth.
Cost of Revenue and Profit Margins
Toast’s cost of revenue increased to $956 million in Q2 2024. However, its strong revenue growth enabled it to maintain healthy profit margins.
The company’s gross profit for Q2 2024 was $286 million, up from $208 million in the same period of 2023.
This improvement in profitability was driven by disciplined cost management and the efficient scaling of its operations.
The breakdown of operating expenses shows a focus on sales and marketing efforts, with $115 million spent in Q2 2024, and research and development (R&D) spending of $87 million.
Both investments are crucial for sustaining Toast’s growth in competitive markets.
Free Cash Flow and Liquidity
Toast’s liquidity has significantly improved, with the company generating $108 million in free cash flow in Q2 2024, compared to $39 million in Q2 2023.
This growth in cash flow is a testament to the company’s efficient operations and ability to generate profit while scaling its services.
Toast’s net cash provided by operating activities reached $124 million.
By managing its cash flow effectively, Toast is able to fund new initiatives, expand into international markets, and continue developing cutting-edge financial technology solutions.
Operating Income and EBITDA Growth
For the first time, Toast achieved GAAP operating income of $5 million in Q2 2024, marking a significant shift from its operating loss of $(80) million in the same period last year.
The company’s Adjusted EBITDA grew to $92 million, a considerable jump from $15 million in Q2 2023.
This growth is an indication of Toast’s improving efficiency and focus on driving profitability.
International Expansion and Impact on Revenue
Toast’s international expansion has played a crucial role in its revenue growth. By adding new locations in various regions, the company has been able to tap into new markets and diversify its revenue streams.
As of Q2 2024, Toast signed deals with major restaurant brands, adding over 200 locations across the U.S.
The company’s expansion into verticals like food and beverage retail is also contributing to its growing revenue.
Toast continues to build its presence internationally, with plans to enter more markets in the near future.
FAQs About Toast
What are Toast’s main sources of revenue?
Its primary revenue streams include subscription services, financial technology solutions, and hardware and professional services.
How has Toast’s financial technology impacted its revenue?
Toast’s financial technology solutions have significantly boosted its revenue, particularly through payment processing, which saw a 26% increase in GPV in Q2 2024.
What was Toast’s revenue in Q2 2024?
It generated $1.242 billion in revenue during Q2 2024, driven by its SaaS products and financial technology solutions.
How many locations use Toast’s services?
As of June 30, 2024, over 120,000 locations were using Toast’s services, a 29% increase year-over-year.
How did Toast achieve profitability in Q2 2024?
The company reached GAAP profitability in Q2 2024, reporting $14 million in net income and $92 million in Adjusted EBITDA.
Conclusion
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