Toast Stock Butters Up Retail Mood With 11% Pre-Market Jump On Q3 Profit Turnaround

Cloud-based restaurant management software company Toast Inc ($TOST) shares soared over 11% in Friday’s pre-market session after the firm swung to profits and revenue topped analyst expectations.

Toast reported a 26% year-over-year (YoY) rise in its third-quarter revenue to $1.31 billion, higher than a Wall Street estimate of $1.29 billion.

Earnings per share came in at $0.07, lower than an estimate of $0.14. However, the firm reported a net profit of $56 million during the quarter compared to a net loss of $31 million in the same period a year ago.

During the quarter, Toast saw its gross payment volume (GPV) increase 24% YoY to $41.7 billion. Annualized recurring run-rate (ARR) as of Sept. 30, 2024 rose 28% to $1.6 billion.

CEO Aman Narang said the firm is well positioned to finish out the year strong and carry the momentum into 2025.

“Toast delivered a strong third quarter, adding approximately 7,000 net new locations, growing our recurring gross profit streams 35%, and achieving adjusted earnings before interest, tax, depreciation, and amortization (EBITDA) of $113 million,” he said.

The company expects fourth-quarter adjusted EBITDA to be in the range of $90 million to $100 million while for the full year, the metric is expected to stay in the range of $352 million to $362 million.

Following the earnings release, retail chatter on Stocktwits mostly indicated a positive take on the stock.

Shares of Toast have jumped over 80% since the beginning of the year, significantly outperforming the benchmark U.S. indices.

Also See: Citi Upgrades Bank Of America To ‘Buy,’ Raises Price Target To $54: Says Valuation Spread Between BAC And JPM Outsized

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