Shares of Toast (NYSE: TOST) tanked by more than 20% in morning trading on Thursday after the digital technology platform built for restaurants’ Q4 earnings missed estimates. The company reported a Q4 loss of $0.19 per share. This loss was wider than analysts’ consensus estimate of a loss of $0.05 per share.
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Revenues soared by 50% year-over-year to $769 million, beating Street estimates by $15.8 million. The company’s Gross Payment Volume (GPV) surged 49% year-over-year to $25.5 billion in Q4.
Looking forward, management now expects revenue and adjusted earnings per share for Q1 2023 to be in the range of $745 million to $775 million versus the consensus of $751.2 million. Adjusted EBITDA is expected to be between a loss of $30 million and $20 million.
In FY23, TOST projected revenue in the range of $3.57 billion to $3.66 billion versus a consensus of $3.61 billion. Adjusted EBITDA is anticipated to be between a loss of $30 million and $10 million.
Overall, Wall Street analysts are cautiously optimistic about TOST stock with a Moderate Buy consensus rating based on five Buys and three Holds.
