Toast, Inc. reported a significant increase in its financial performance for the fiscal year ended December 31, 2024, with total revenue reaching $4.96 billion, a 28% increase from $3.87 billion in the previous year. The growth was driven by a 41% rise in subscription services revenue, which totaled $706 million, and a 27% increase in financial technology solutions revenue, amounting to $4.05 billion. The company also saw hardware and professional services revenue grow by 14% to $201 million. Despite these gains, Toast recorded a net income of $19 million, a notable recovery from a net loss of $246 million in 2023.
The company experienced a 26% year-over-year increase in customer locations, bringing the total to approximately 134,000. This growth in locations contributed to a gross payment volume of approximately $159 billion processed through its platform. The increase in customer engagement was reflected in the rise of annualized recurring run-rate (ARR), which is a key operational metric for the company. The total ARR is expected to be approximately $837 million from remaining performance obligations, with a significant portion anticipated to be recognized over the next 24 months.
Strategically, Toast has made significant operational adjustments, including a restructuring plan announced in February 2024, which resulted in $46 million in restructuring expenses. This plan aimed to enhance operational efficiency and included a reduction in workforce. The company also engaged in a warrant repurchase program, buying back 5 million shares of Class B common stock for $61 million, which contributed to a change in the fair value of its warrant liability.
In terms of geographic expansion, Toast continues to focus on increasing its footprint in the U.S. restaurant market, where it currently serves about 15% of the total market. The company is also exploring opportunities to expand internationally and into the food and beverage retail sector. As of December 31, 2024, Toast employed approximately 5,700 people globally, reflecting its commitment to scaling operations to meet growing demand.
Looking ahead, Toast anticipates continued growth driven by increased product adoption and expansion into new markets. The company plans to invest in research and development to enhance its technology platform and broaden its service offerings. However, management cautioned that future revenue growth may fluctuate due to various factors, including competitive pressures, economic conditions, and changes in customer behavior.
About Toast, Inc.
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