Toast Reports Q4 Revenue Surge, EPS Misses

Toast Inc. reported mixed results for its fourth quarter of 2024, with revenue rising 29% year-over-year to $1.34 billion, surpassing expectations of $1.31 billion. However, adjusted earnings per share fell short at $0.05, missing the anticipated $0.17, indicating ongoing challenges in profitability despite robust growth. The company added a record 28,000 net locations during the year, bringing the total to approximately 134,000, and achieved its first year of GAAP profitability. Gross payment volume also grew by 25% to $42.2 billion, exceeding analyst forecasts. CEO Aman Narang highlighted the momentum with their core customer base and positive signals from newer customer segments, including enterprise and international markets. Overall, while Toast's revenue growth is promising, the earnings miss raises concerns about operational efficiency moving forward.