News Summary
Toast, Inc., a premier restaurant management platform, reveals impressive financial growth with a significant rise in user adoption, reporting record earnings for 2024. The company added 28,000 new locations, boosting its ARR by 34% to over $1.6 billion. With $1.338 billion in revenue for Q4 and a total of $4.96 billion for the year, Toast demonstrates its strong market presence and strategic focus on diverse customer segments, paving the way for continued expansion and innovation.
Boston, MA – Toast, Inc., a leading restaurant management platform, has announced significant financial growth for the year 2024, highlighting a remarkable increase in user adoption and profitability. The company reported record financial results for the fourth quarter and the entire year, concluding on December 31, 2024.
In 2024, Toast added a historic 28,000 net locations, raising its total to approximately 134,000. This expansion is a key factor driving its annualized recurring run-rate (ARR), which soared by 34% to exceed $1.6 billion by the end of the year. In the fourth quarter alone, the company recorded a net income of $33 million and an adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) of $111 million.
For the full year, Toast’s net income was $19 million with an adjusted EBITDA totaling $373 million. The financial performance underscores a successful year as the company continues to tap into broader customer bases including enterprise clients, international markets, and various segments within the food and beverage retail sector.
Key Financial Metrics
Toast’s financial highlights for the fourth quarter of 2024 include:
- Total revenue of $1.338 billion, an increase from $1.036 billion in Q4 2023.
- Gross profit for the quarter rose to $333 million compared to $226 million in the same quarter of the previous year.
For the entire year, total revenue reached $4.96 billion, a significant rise from $3.865 billion in 2023. However, the cost of revenue escalated to $3.770 billion in 2024 from $3.031 billion the year before. Operating expenses also saw a modest increase to $1.174 billion, up from $1.121 billion in 2023.
Asset and Liability Overview
As of December 31, 2024, Toast recorded cash and cash equivalents of $903 million, an improvement from $605 million in 2023. The company’s total assets were evaluated at $2.408 billion, compared to $1.958 billion at the end of the prior year. Total liabilities also rose to $863 million in 2024, an increase from $764 million in 2023.
Future Outlook
Looking ahead, Toast aims to accelerate its initiatives in new addressable markets and maintain a distinct platform differentiation strategy throughout 2025. The company plans to host a live conference call on February 19, 2025, to further discuss its financial performance, offering insights into its strategic direction and market opportunities.
Methodology
Toast employs non-GAAP financial measures to assess its core operating performance and to provide investors with enhanced clarity on its financial outlook. This approach allows for a more comprehensive understanding of the company’s performance against traditional financial metrics.
This transformational year marks a significant milestone for Toast, reinforcing its position as a leader in the restaurant technology industry while paving the way for further growth and innovation in the upcoming years.
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Additional Resources
- Business Wire: Toast Announces Financial Results
- Wikipedia: Restaurant Management
- FSR Magazine: Boston’s Restaurant Growth
- Google Search: Restaurant Industry Trends 2024
- MassLive: Boston Area Pop-Up Bars
- Google Scholar: Restaurant Financial Performance
- Boston Magazine: Best of Boston Bars
- Encyclopedia Britannica: Restaurant Industry
- Amtrak Media: Acela First-Class Dining
- Google News: Restaurant Technology News
