Toast Inc. (NYSE:TOST) shares are up in double digits today after the restaurant-focused digital platform posted better-than-anticipated second-quarter numbers with revenue soaring 44.9% year-over-year to $978 million. Net loss per share at $0.19 though came in wider than expectations by $0.05.
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Importantly, this was the first quarter of positive adjusted EBITDA and positive free cash flow for the company since its IPO nearly two years ago. Further, while annualized recurring run rate (ARR) crossed the $1 billion mark, Toast also added a record 7,500 net new locations during this period.
Moreover, at $32.1 billion, the company clocked more than a 35% year-over-year growth in its gross payment volume.
Looking ahead, for full-year 2023, Toast now expects revenue to hover between $3,810 million to $3,870 million as compared to the prior outlook between $3,710 million and $3,800 million. Adjusted EBITDA is now seen landing between $15 million to $35 million. This is a substantial boost from prior expectations between -$10 million to $10 million.
Overall, the Street has a $26 consensus price target on Toast alongside a Moderate Buy consensus rating. Today’s price gains come on top of a 15.2% rise in Toast shares so far this year.
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