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Investing.com -- Toast Inc (NYSE:TOST) fluctuated between gains and flat performance following Thursday's market open, as investors reacted to the company's mixed fourth-quarter report and soft guidance.
The company posted fourth-quarter per share profit of $0.05, falling by $0.12 short of Wall Street estimates of $0.17
Revenue for the quarter came in at $1.34 billion, surpassing analysts’ expectations of $1.31 billion.
Toast reported recurring gross profit (GP) of $392 million, up 40% year-over-year, with a 30.4% margin, exceeding consensus expectations of $381 million and guidance of $370 million to $380 million.
Adjusted EBITDA of $111 million, representing a 28.3% margin on recurring gross profit, also surpassed the Street’s estimate of $101 million and guidance of $90 million to $100 million.
Toast for its first quarter, expects non-GAAP subscription services and financial technology solutions gross profit to be in the range of $385 million to $395 million, representing 27-30% growth from the prior year. The company also forecast adjusted EBITDA between $100 million and $110 million.
In 2024 "we added a record 28,000 net locations, grew our recurring gross profit streams 34%, delivered Adjusted EBITDA of $373 million, and achieved our first year of GAAP profitability,” said Toast CEO in a statement.
Q1 and full-year 2025 recurring gross profit guidance of $385 million to $395 million and $1.745 billion to $1.765 billion fell short of consensus expectations of $395 million and $1.785 billion, respectively.
Jefferies analysts see the company's guidance as "a bit conservative."
"Investors that became accustomed to blowout quarters in 2024 might be disappointed, but we find it impressive that TOST is well-positioned to deliver another year of close to 25% GP $ growth paired with solid margin expansion in 2025," they noted.
Pratyush Thakur contributed to this report.
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