Table of Contents :
• Stock Rating & Target Price
• Investment Thesis
• Fundamental Models Used
• Company Description
• Corporate Timeline
• Key Metrics (KPI ) and Recently Reported Earnings Review
• Business Highlights, Strategic Announcements & Outlook
• Quarter-over-Quarter (Q-o-Q) and Year-over-Year (Y-o-Y) Growth Analysis
• Key Catalysts Driving Growth
• Historical Financial Statement Analysis & CAGR Trends
• Quarterly Key Financial Ratios and Performance Metrics
• Annual Financial Performance Analysis: Horizontal and Vertical Financial Analysis, Trends
• Financial Forecasts
• Annual Forecasts: Income Statement
• Annual Forecasts: Cash Flow Statements
• Net Debt Levels
• A Closer Look at DCF: Our Assumptions and Methodology
• Terminal Value Calculation
• Target Price Analysis
• Valuation Multiples
• Supplementary Valuation Analysis: Multiples Approach
• Scenario/Sensitivity Analysis – Base Case , Bull Case ,Bear Case
• Holistic Peer Review & Trading Comps: Financial Data, Operational Metrics, and Valuation Multiples
• Implied Price Per Share
• Ownership Activity/ Insider Trades
• Ownership Summary
• An analysis of ESG Risk Rating
• Key Professionals
• Key Board Members
• Key Risks Considerations
• Analyst Ratings
• Analyst Industry Views
• Disclosures
Toast, Inc.: TAM Expansion and Product Innovation at the Core – Will New Markets and Upsell Momentum Define 2025 & Beyond?
Toast, Inc. (TOST) delivered strong Q3 2024 results, with revenue of $1.31B, surpassing expectations by $13.6M. The company saw a 35% increase in recurring gross profit, driven by a 28% rise in Annual Recurring Revenue (ARR) and 44% growth in subscription revenue. SaaS ARPU grew 4%, reflecting effective monetization of its expanding product suite. Although adjusted EPS fell short, GAAP EPS exceeded estimates, highlighting operational efficiency. The company added 7,000 net locations, expanding its market footprint, while addressing only 14% of the U.S. restaurant market, indicating substantial long-term growth potential. Strategically, Toast is expanding its presence in CPG retail and international markets while maintaining focus on its core U.S. SMB business. Notable wins like Potbelly’s 400+ locations and improvements in enterprise traction are critical drivers. The launch of innovative products like Branded Apps and SMS Marketing, along with Toast Capital, positions the company for continued growth. Adjusted EBITDA for the quarter reached $113M, and full-year guidance reflects a path toward achieving 30%-35% mid-term margins. Will Toast’s expansion into new markets, combined with upsell momentum and product innovation, deliver sustainable growth and long-term value for investors?
