Q4 2023 Earnings Summary
Reported on Feb 18, 2025 (After Market Close)
Pre-Earnings Price$19.20Last close (Feb 15, 2024)
Post-Earnings Price$21.35Open (Feb 16, 2024)
Price Change
$2.15(+11.20%)
- Toast continues to gain strong market share in SMB markets, with over 30% SMB market share in some regions, and still experiencing some of the strongest rep productivity and conversion rates, indicating significant room for growth.
- The expansion into hybrid restaurant-retail concepts offers higher GPV and ARPU potential, driven by existing customers who offer not just restaurant services but also packaged goods, grocery, and wine, opening up new revenue opportunities.
- Toast is poised to increase ARPU through gradual pricing adjustments and increased product attach rates, complementing location growth and contributing to overall revenue growth.
- Toast announced a 10% reduction in workforce, primarily focusing on non-customer-facing roles, which may indicate challenges in managing growth and operational efficiency.
- Slower Gross Payment Volume (GPV) trends in January due to weather headwinds have led to a lower Q1 guidance, and the company continues to closely monitor GPV trends, suggesting potential volatility in their business performance.
- High stock-based compensation, comprising 27% of their recurring gross profit streams in 2023, may lead to dilution concerns for shareholders, and although they plan to reduce it to low double digits over the medium term, it remains a significant expense.