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Toast, Inc. (TOST) is a cloud-based, all-in-one digital technology platform designed specifically for the restaurant industry. The company offers a comprehensive suite of software-as-a-service (SaaS) products and financial technology solutions, including integrated payment processing and restaurant-grade hardware. Toast serves as the restaurant operating system, connecting front-of-house and back-of-house operations across various service models such as dine-in, takeout, delivery, catering, and retail.
- Financial Technology Solutions - Facilitates payment transactions through transaction-based fees and includes marketing and servicing working capital loans through Toast Capital.
- Subscription Services - Provides access to Toast's software applications over a term of 12 to 36 months, with fees based on location, software products purchased, hardware configuration, and employee count.
- Hardware and Professional Services - Sells hardware such as terminals, tablets, and handhelds, and offers professional services like installation, configuration, and training.
| Name | Position | External Roles | Short Bio | |
|---|---|---|---|---|
Aman Narang ExecutiveBoard | Chief Executive Officer | None | Co-Founder of Toast, instrumental in scaling the company, led various functions, and contributed to its public offering. | View Report → |
Stephen Fredette ExecutiveBoard | President | None | Co-Founder and President, previously Co-President and CEO, significant management experience. | |
Elena Gomez Executive | Chief Financial Officer | Board Member at Smartsheet Inc. and PagerDuty, Inc. | CFO since May 2021, previously CFO at Zendesk, held senior finance roles at Salesforce. | |
Gail Miller Executive | Chief Accounting Officer | None | Appointed CAO in Feb 2025, previously CAO at Remitly Global, Inc. and Shift4 Payments, Inc. | |
David Yuan Board | Director | General Partner at Tidemark Capital, Board Member at Karbon, Inc. and Kajabi LLC | Extensive experience in venture capital and technology industries. | |
Deval L. Patrick Board | Director | Senior Advisor to The Vistria Group, Professor at Harvard Kennedy School, Board Member at Cerevel Therapeutics Holdings, Inc. and Twilio Inc. | Extensive leadership experience, commitment to public interest, and corporate social impact. | |
Hilarie Koplow-McAdams Board | Director | Venture Partner at New Enterprise Associates, Board Member at Zendesk, Inc. | Extensive experience in leadership roles at technology companies, including New Relic and Tableau Software. | |
Kent Bennett Board | Director | Partner at Bessemer Venture Partners | Investment professional with extensive experience in venture capital, serving on boards of various privately held companies. | |
Mark Hawkins Board | Chairperson of the Board | Board Member at SecureWorks Inc., Cloudflare, Inc., and Workday, Inc. | Chairperson since Jan 2024, former Lead Independent Director, extensive leadership and financial roles at Salesforce, Autodesk, and Logitech. | |
Susan E. Chapman-Hughes Board | Director | Board Member at The J.M. Smucker Company | Former Executive VP at American Express, extensive experience in finance and operations. |
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Your GPV per location has declined approximately 3% year-over-year for consecutive quarters, and you expect this trend to continue into Q4. What are the underlying factors driving this decline, and how do you plan to address them?
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Operating expenses increased 11% year-over-year in Q3, with sales and marketing expenses up 25% and R&D expenses up 5%. How do you justify these increased investments amidst declining GPV per location, and what return on investment do you expect?
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Churn remains slightly above 10% on an annualized basis, primarily impacting smaller restaurants. What strategies are you implementing to reduce churn among these smaller clients and improve overall retention?
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You added approximately 7,000 net locations this quarter. Can you provide a breakdown between new restaurant openings and competitive takeaways, and how sustainable is this level of net adds in the current market environment?
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You are investing more in TAM expansion areas like retail and international markets next year. Given the early stages of these ventures and increased operating expenses, how confident are you that these investments will yield profitable returns, and what are the main risks you foresee?
Notable M&A activity and strategic investments in the past 3 years.
| Company | Year | Details |
|---|---|---|
Delphi Display Systems, Inc. | 2023 | Toast, Inc. acquired Delphi Display Systems for $10 million on February 14, 2023, allocating the purchase price into goodwill, intangible assets, and other net assets to enhance its drive-thru technology and digital menu solutions for QSRs. |
Sling, Inc. | 2022 | Toast, Inc. completed its acquisition of Sling, Inc. on July 6, 2022 for $49 million, which included a mix of cash, escrow funds, deferred consideration, and stock issuance to management, positioning Toast to expand its scheduling and communication solutions that improve team management for restaurant operations. |
Recent developments and announcements about TOST.
Earnings
New Earnings (Q4 2024)
·Feb 19, 2025, 11:50 PMView full earnings summary →Toast added a record 28,000 net locations in 2024, fueling 35% Payments ARR growth in Q4. However, GPV per location is poised to drop further in Q1 2025, hinting at weaker same-store trends. Watch whether pricing gains prove durable amid these headwinds.