From their late-2021 pinnacle to the current trough, Toast (TOST -4.18%) shares have taken a dizzying 74% price plunge. But this doesn't look like a downward spiral to me. Rather, I'd call it a runway for savvy investors. Let's see how the restaurant management software expert's steep drop appears to be a wide-open buying window.What does Toast do?Think of Toast as the Swiss Army knife for restaurateurs: From taking orders to crunching numbers, it's got nearly everything covered. Its cloud-based software co ...

SasaJo/iStock via Getty ImagesIntroduction and Investment Thesis Toast (NYSE:TOST) is an all-in-one cloud-based platform that powers the restaurant industry. Although the company operates in a large TAM with an innovative product portfolio, the company has seen its revenue growth slowdown in 2023. While the management has pointed to overall macroeconomic headwinds, the company has taken active measures to improve overall profitability. While the stock has severely underperformed the S&P 500 and the Nasd ...

Toast (TOST -3.81%) has been a public company for less than three years. The company priced its September 2021 initial public offering (IPO) at $40 a share, and the stock surged by more than 50% on its first day of trading.But investors who held on have seen the share price fall well below that IPO price, selling at less than half that level. While hot IPOs often garner a lot of attention after the initial surge, investors should take a rational approach to the business and valuation.Taking a step back from ...

Toast Inc (NYSE: TOST) has already gained 35% over the past two months but a Goldman Sachs analyst is convinced it’s not done pleasing its shareholders just yet.Toast stock could climb another 25%Copy link to sectionWilliam Nance upgraded the payments company for restaurants this morning to “buy”. His $24 price objective suggests another 25% upside from here. The analyst turned bullish on Toast stock because “the market is not accounting for what we expect to be materially better profitability trends in 202 ...

Since going public at $40 per share in September 2021, Toast's (TOST 1.26%) stock price has significantly underperformed the market. It has declined over 50% from its IPO valuation, while the S&P 500 (^GSPC 0.18%) index gained 6% in the same span. In its first year as a public company, Toast's share price fell as much as 70% in 2022 amid a volatile market environment -- especially for high-growth stocks with minimal profits -- and stayed down while many other beaten-down stocks soared.But one shareholder's ...

Cathie Wood gained legions of followers when her ARK Invest exchange-traded funds (ETFs) skyrocketed in the early pandemic bull market. Focused on growth and innovation, those same ETFs started a steep decline even before the stock market fell into a bear market in 2022.But Wood didn't change her investing thesis during this time and still sees disruptive tech as the key to unlocking tremendous returns over time. Many of her ETFs beat the market in 2023 and are likely to continue moving higher in this bulli ...

Toast (TOST -3.49%) is coming off a lackluster year in 2023, where its share price rose by a modest 2%. The shaky ground the economy is on hasn't been doing any favors for the company. But the business itself hasn't been doing badly at all.Restaurants use Toast's point-of-sale (POS) devices to help simplify their operations, and it integrates with other functions as well. It adds a lot of value to the industry, and the number of restaurants using POS devices has been rising. With a potential soft landing fo ...

Toast, Inc. (NYSE:TOST) Q3 2023 Earnings Conference Call November 7, 2023 5:00 PM ET Company Participants Michael Senno - Senior Vice President, Finance Chris Comparato - Chief Executive Officer Aman Narang - Chief Operating Officer Elena Gomez - Chief Financial Officer Conference Call Participants Tim Chiodo - UBS Stephen Sheldon - William Blair Will Nance - Goldman Sachs Tien-Tsin Huang - JPMorgan Jason Kupferberg - Bank of America Josh Baer - Morgan Stanley Dave Koning - Baird Operator Good afternoon. M ...

atoast nn This presentation includes certain "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995, including statements regarding the future results of operations, financial condition, business strategy, plans and objectives of management for future operations of Toast, Inc. ("Toast", "we" or "us"), statements regarding the expectations of demand for Toast's products and growth of its business, our market opportunity and the potential growth of that market, ...

Revenue Growth and Performance - Gross Payment Volume (GPV) for Q3 2023 reached $33.7 billion, a 34% increase compared to $25.2 billion in Q3 2022[92] - Annualized Recurring Run-Rate (ARR) as of September 30, 2023, was $1.218 billion, up 40% from $868 million in the same period last year[92] - Total GPV for the nine months ended September 30, 2023, was $92.5 billion, a 40% increase from $66.3 billion in the same period in 2022[92] - Total revenue for the three months ended September 30, 2023, increased by 37% to $1,032 million compared to $752 million in the same period last year[115] - Subscription services revenue grew by 46% to $131 million for the three months ended September 30, 2023, driven by growth in restaurant locations on the Toast platform[115] - Financial technology solutions revenue increased by 36% to $856 million for the three months ended September 30, 2023, primarily due to growth in restaurant locations on the Toast platform[116] - Hardware revenue rose by 26% to $34 million for the three months ended September 30, 2023, driven by new restaurant locations and higher sales to existing locations[116] Revenue Breakdown by Segment - Subscription services revenue is primarily based on a rate per location, varying by software products, hardware configuration, and employee count[100] - Financial technology solutions revenue includes transaction-based fees and fees from working capital loans through Toast Capital[101] - Hardware revenue is generated from the sale of terminals, tablets, handhelds, and related devices, net of estimated returns[102] - Professional services revenue comes from installation services, including business process mapping, configuration, and training[102] - Financial technology solutions revenue is seasonal, typically stronger in Q2 and Q3 due to higher customer sales during warmer months[97] Expenses and Investments - Research and development expenses focus on platform improvements and new product offerings, driven by employee-related costs and third-party software[108] - Sales and marketing expenses increased by 19% to $100 million for the three months ended September 30, 2023, primarily due to higher employee-related costs[121] - Research and development expenses grew by 18% to $87 million for the three months ended September 30, 2023, mainly due to increased employee-related costs[122] - General and administrative expenses increased by 26% to $98 million for the three months ended September 30, 2023, driven by higher bad debt and credit-related expenses[123] Profitability and Cash Flow - Adjusted EBITDA improved to $35 million for the three months ended September 30, 2023, compared to a loss of $19 million in the same period last year[133] - Free cash flow for the nine months ended September 30, 2023 was $12 million, compared to $(160) million in the same period of 2022[136] - Net cash provided by operating activities for the nine months ended September 30, 2023 was $43 million, compared to $(137) million in the same period of 2022[141] - Net cash used in investing activities for the nine months ended September 30, 2023 was $85 million, compared to $25 million in the same period of 2022[141] - Net cash provided by financing activities for the nine months ended September 30, 2023 was $58 million, compared to $36 million in the same period of 2022[141] - Net increase in cash, cash equivalents and restricted cash for the nine months ended September 30, 2023 was $16 million, compared to $(126) million in the same period of 2022[141] Financial Position and Liquidity - As of September 30, 2023, the company had cash and cash equivalents and marketable securities of $1,030 million, excluding $87 million held on behalf of customers and $49 million in restricted cash[138] - The company has $330 million available under its 2021 Facility as of September 30, 2023[138] - The company believes its existing cash and cash equivalents, along with available borrowing capacity, will be sufficient to meet working capital needs for at least the next 12 months[139] - Cash used in investing activities for the nine months ended September 30, 2023 included purchases of marketable securities, capitalized software, and an acquisition[144] - The company entered into an amendment to its revolving credit facility agreement on March 2, 2023 to replace LIBOR with SOFR[147] Other Financial Metrics - Interest income, net, increased to $10 million for the three months ended September 30, 2023, up from $3 million in the same period last year, due to higher income from marketable securities[125] - The change in fair value of warrant liability resulted in a gain of $18 million for the three months ended September 30, 2023, compared to a loss of $21 million in the same period last year[126] Customer and Market Reach - Toast serves approximately 99,000 restaurant locations as of September 30, 2023, processing $118 billion in GPV over the trailing 12 months[86]