Earnings Results: Toast posts a beat in first earnings report since IPO, but stock dips
Toast Inc. exceeded expectations with its latest earnings and outlook, but shares of the restaurant-focused payment-technology company were falling in after-hours trading Tuesday after its first report since hitting the public market.
The company, which held a late-September initial public offering, recorded a net loss of $252.5 million, or $1.05 a share, compared with a loss of $62.6 million, or 31 cents a share, in the year-earlier quarter. Toast
reported a loss on the basis of adjusted earnings before interest, taxes, depreciation, and amortization (Ebitda), which is a non-GAAP metric, of $9.7 million, whereas the FactSet consensus was for a $43 million loss on the metric.
Toast more than doubled revenue to $486.4 million from $236.8 million a year earlier. Analysts tracked by FactSet were expecting $434 million in revenue.
Shares fell 3% in after-hours trading Tuesday.
For the fourth quarter, Toast anticipates revenue of $465 million to $495 million and a loss on the basis of adjusted Ebitda of $40 million to $50 million. Analysts were anticipating $447 million in revenue and a loss on the basis of adjusted Ebitda of $56 million.
Toast previously disclosed that up to 15% of vested equity held by current and former employees and consultants could be sold beginning at the start of trading on the second trading day after Toast announces its third-quarter results. As such, the company expected that up to 10,692,110 shares would become eligible for sale in the public market when trading opens Nov. 11.
The company also previously noted that as another condition of the lockup agreements, up to 15% of the vested equity held by executive officers, directors and other holders would eligible for sale beginning at the start of trading on the second day after share-price conditions are met. Toast said that the conditions would be satisfied if Toast’s stock fetches a closing price of at least $50 on Nov. 10.
Accordingly, Toast estimates that up to 65,442,460 additional shares would be eligible to be sold at the start of trading Nov. 12 if the price conditions are met.
The shares have risen 17% over the past month as the S&P 500
has added about 7%.