Many fintech names are seeing sharper declines than the broader market. Companies tied to consumer and small business spending, like Shift4 and Toast, have been hit hard as President Trump's economic policy raises concerns about consumer strength.
Zacks.com users have recently been watching Toast (TOST) quite a bit. Thus, it is worth knowing the facts that could determine the stock's prospects.
TOST is navigating the macroeconomic headwind with innovative feature additions and diversification of its customer base beyond the restaurant space.
In this insightful video, analysts discuss the current challenges facing Toast (TOST -5.85%) stock amid rising food prices and economic uncertainties. While the company remains a favorite, investors must carefully evaluate the potential impacts on its business model and customer base.
Many investors have a preference for businesses generating strong revenue growth. This is a high-visibility metric that points to a clear product-market fit.
IPO stock Toast made its debut on the New York Stock Exchange around four years ago.
I downgraded Toast to a “hold” after five consecutive “buy” ratings in my previous post due to a shrinking upside after a 120%+ gain, despite strong long-term growth prospects. Toast's Q4 FY24 earnings saw its revenue and Adjusted EBITDA grow 29% and 87% YoY respectively, while turning GAAP profitable as management continued to deliver on its strategic priorities. Management's FY25 guidance indicates slower growth, with 23-25% YoY gross profit growth and $520M Adjusted EBITDA, amid macroeconomic uncertainties and potential margin pressures.
Toast's stock has dropped ~20% from recent peaks in the mid-$40s, creating an opportune re-entry point. I'm upgrading the stock back to a buy rating. Though still not a cheap stock, Toast is now trading at a ~37x forward adjusted EBITDA multiple for ~40% expected EBITDA growth in FY25. Toast's Q4 revenue and ARR saw acceleration to a ~30% clip, despite a tough macro environment for restaurants.
Toast (TOST) has been one of the stocks most watched by Zacks.com users lately. So, it is worth exploring what lies ahead for the stock.
Shares of Toast Inc TOST tanked in early trading on Thursday, after the company reported mixed fourth-quarter results.
Toast, Inc. (NYSE:TOST ) Q4 2024 Earnings Conference Call February 19, 2025 5:00 PM ET Company Participants Michael Senno - Senior Vice President, Finance Aman Narang - Chief Executive Officer & Co-Founder Elena Gomez - Chief Financial Officer Conference Call Participants Will Nance - Goldman Sachs Joshua Baer - Morgan Stanley David Hynes - Canaccord Genuity Timothy Chiodo - UBS Dan Dolev - Mizuho Samad Samana - Jefferies Harshita Rawat - Bernstein Bryan Keane - Deutsche Bank Operator Good afternoon. My name is Sarah, and I will be your conference operator today.
The headline numbers for Toast (TOST) give insight into how the company performed in the quarter ended December 2024, but it may be worthwhile to compare some of its key metrics to Wall Street estimates and the year-ago actuals.