Toast Grows Sales and Profit as Its Finance Chief Steps Down

what happened

Toast, the restaurant-payments provider, reported higher revenue and profit for the third quarter. Net profit reached $169 million, or 29 cents a share, up from $105 million, or 16 cents, a year earlier. Analysts polled by FactSet had expected 25 cents. Revenue rose 21% to $1.98 billion, above the $1.97 billion Wall Street analysts had forecast.

Gross payment volume grew 20% to $61.8 billion, though it came in below the $62.55 billion FactSet analysts had expected. Total locations rose 21% to about 189,000. Annualized recurring revenue run-rate climbed 24% to $2.5 billion as of Sept. 30.

At the same time, the company said Chief Financial Officer Elena Gomez will step down effective Dec. 31. Toast said the departure was not due to any disagreement with the company. Gomez will remain in an advisory role until July 2, 2027, and Michael Senno will succeed her on Jan. 1. Dow Jones Newswires reported that shares fell 6% in after-hours trading.

why it matters

Strong quarterly figures usually support a stock, but the after-hours decline suggests investors focused on the finance chief change and on payment volume that slightly missed expectations. For the payments sector, the takeaway is that growth is coming mainly from new locations.

market impact

Toast shares: strong results offset by CFO change, pressuring the stock after hours

• ▼Toast (TOST) pressure down — after-hours drop of 6% following the CFO departure announcement

tags

instruments