Toast, Inc. Q4'24 Earnings: A Transformational Year of Growth & Profitability
- Hardik Shah
- Feb 19
- 3 min read
TLDR
Record Growth: Toast added 28,000 net locations in 2024, expanding its footprint to 134,000 locations, reinforcing its market position.
Strong Financial Performance: Achieved first-ever GAAP profitability, with $19M net income for the full year and $373M in Adjusted EBITDA.
Expansion & Innovation: Strengthened enterprise partnerships (Hilton, Potbelly, Perkins), expanded international markets, and invested in AI-driven solutions to enhance restaurant operations.
Financial Results
Toast, Inc. is a cloud-based, all-in-one digital platform designed for restaurants, offering point-of-sale (POS), payment processing, operations management, and guest engagement tools. The company primarily serves SMBs and mid-market restaurants in the U.S., with recent expansions into enterprise, international markets, and food & beverage retail.
Q4 2024 Highlights:
Revenue: $1.34B (+29% YoY)
Net Income: $33M (vs. $(36)M loss in Q4 2023)
Adjusted EBITDA: $111M (+283% YoY)
Gross Payment Volume (GPV): $42.2B (+25% YoY)
Annualized Recurring Run-Rate (ARR): $1.6B (+34% YoY)
Free Cash Flow: $134M (vs. $81M in Q4 2023)
Full-Year 2024 Highlights:
Revenue: $4.96B (+28% YoY)
Net Income: $19M (vs. $(246)M loss in 2023)
Adjusted EBITDA: $373M (vs. $61M in 2023)
GPV: $159.1B (+26% YoY)
Free Cash Flow: $306M (vs. $93M in 2023)
"Toast had a strong close to 2024, capping off a transformational year where we delivered strong profitability and expanded our market reach significantly." — Aman Narang, CEO & Co-Founder
Operational Performance
Growth Drivers:
Expanded enterprise partnerships (e.g., Hilton, Potbelly, Perkins, Huddle House).
Strengthened international presence, launching loyalty and restaurant retail products.
Improved SaaS ARPU for international markets (+50% YoY).
Launched AI-driven solutions (benchmarking, predictive analytics) to enhance restaurant efficiency.
Challenges:
Macroeconomic Factors: Inflationary pressures impacting restaurant operations.
Competitive Landscape: Navigating competition from legacy POS providers and emerging fintech entrants.
Operational Scaling: Balancing rapid expansion while maintaining service quality and innovation pace.
Market Insights
Toast is capitalizing on strong tailwinds in restaurant digitization, expanding into:
Enterprise: More large-scale restaurant groups adopting cloud-based POS solutions.
International Growth: Increasing demand in high-GPV markets.
Retail & Food Service: Targeting grocery, convenience stores, and food retail chains.
"We see massive growth potential in retail, international, and enterprise segments. We’re investing in these businesses because customer feedback has been strong, and we see them as key to long-term expansion." — Aman Narang, CEO & Co-Founder
Strategic Initiatives
Technology & Product Expansion
AI-driven restaurant analytics & automation.
Enhancing mobile inventory & digital ordering.
Expanding SaaS & fintech solutions.
M&A & Partnerships
Expanded Uber partnership for food delivery solutions.
Signed largest full-service restaurant deal with Ascent Brands (500+ locations).
Operational Efficiency
Optimizing customer acquisition costs (CAC) & margins.
Expanding self-service automation to reduce customer support costs.
Forward Guidance (2025)
Q1 2025 Projections:
Non-GAAP Gross Profit: $385M–$395M (+27-30% YoY)
Adjusted EBITDA: $100M–$110M
Full-Year 2025 Outlook:
Non-GAAP Gross Profit: $1.74B–$1.76B (+23-25% YoY)
Adjusted EBITDA: $510M–$530M
"We’re confident in our ability to balance growth and profitability, with disciplined investments in our most promising opportunities." — Elena Gomez, CFO
The Bottom Line
Toast closed 2024 with record growth, expanding to 134,000 locations and achieving its first-ever GAAP profitability. With strong momentum in AI-driven restaurant solutions, enterprise expansion, and international markets, the company is poised for continued growth in 2025. Its focus on innovation, efficiency, and customer adoption will be key drivers as it scales its platform to serve even more businesses globally.
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