Q2 2024 Toast Inc Earnings Call Transcript
Key Points
- Toast Inc (TOST) added a record 8,000 net locations in Q2 2024, increasing total locations to about 120,000, up 29% year-over-year.
- Recurring gross profit streams increased by 29% year-over-year, totaling $344 million.
- Adjusted EBITDA came in at $92 million, representing a 27% margin on recurring gross profit streams.
- Toast Inc (TOST) achieved GAAP income profitability ahead of expectations.
- The company increased its full-year outlook, expecting 27% to 29% growth in fintech and subscription gross profit and $285 million to $305 million in adjusted EBITDA.
- GPV per location was down 3% year-over-year, reflecting a decline in same-store sales.
- The net take rate contribution from non-payments fintech solutions was slightly lower due to the introduction of forward flow.
- Operating expenses are expected to increase in the second half of the year as the company reinvests savings into high-priority areas.
- Churn rate is slightly above 10% on an annualized basis, up slightly relative to a year ago.
- There is a noted seasonality in net location adds, with Q2 typically being the strongest quarter, implying lower adds in the second half.
Good afternoon. My name is Brika, and I will be your conference operator today. At this time, I would like to welcome everyone to Toast's Second Quarter 2024 Earnings Conference Call. Today's call will be 45 minutes.
I'll now turn the call over to Michael Senno, Senior Vice President of Finance. You may begin your conference.
Thank you, operator. Welcome to Toast's earnings conference call for the second quarter ended June 30, 2024. On today's call are CEO and Co-Founder, Aman Narang; and CFO, Elena Gomez, who'll open with prepared remarks, which will be followed by our Q&A session.
Before we start, I'd like to draw your attention to the safe harbor statement included in today's press release. During this call, we'll make statements related to our business that may be considered forward-looking within the meaning of the Securities Act and the Exchange Act.
All statements other than statements of historical facts are forward-looking statements, including those regarding
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