Q1 2024 Toast Inc Earnings Call Transcript
Key Points
- Toast Inc (TOST) reported first quarter results that exceeded expectations, with significant year-over-year growth in recurring gross profit streams by 33%.
- Adjusted EBITDA for the quarter was $57 million, marking a $74 million improvement compared to Q1 of the previous year.
- The company successfully added over 6,000 net new locations during the quarter, demonstrating strong market penetration and growth in its core business.
- Toast Inc (TOST) launched new suites including restaurant management, digital storefront, and marketing suites, enhancing product offerings and customer value.
- International expansion is progressing well with positive reception in the U.K., Canada, and Ireland, and the launch of integrated online ordering capabilities.
- Despite overall growth, GPV per location was down 2% year-over-year, indicating some challenges in per-location revenue generation.
- Free cash flow was negative $33 million in the quarter, influenced by timing of cash bonus and severance payments.
- The company faces ongoing competitive pressures as peers also upgrade technology and expand software offerings.
- While international expansion shows promise, significant investments and adaptations are required to tailor products to local markets.
- The forward flow model for Toast Capital, while reducing credit risk, results in a slightly lower revenue take rate and impacts recurring gross profit.
Good afternoon. My name is Cameron, and I will be your conference operator today. At this time, I would like to welcome everyone to Toast First Quarter 2024 Earnings Conference Call. Today's call will be 45 minutes. I'll now turn the call over to Michael Senno, Senior Vice President of Finance. You may now begin your conference.
Thank you, Cameron. Welcome to Toast's earnings conference call for the first quarter ended March 31, 2024. On today's call are CEO and Co-Founder, Aman Narang; and CFO, Elena Gomez, who'll open with prepared remarks, which will be followed by our Q&A session.
Before we start, I'd like to draw your attention to the safe harbor statement included in today's press release. During this call, we'll make statements related to our business that may be considered forward-looking within the meaning of the Securities Act and the Exchange Act. All statements other than statements of historical facts are forward-looking statements, including those
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