Toast, Inc. (TOST), a cloud-based technology platform serving the restaurant industry, has faltered 15.36% in premarket trading session and as a result, is trading at $23.80 at the time of the writing. During Tuesday’s regular trading session, the stock gained an increase of 2.48 percentage points and closed the day at $28.12. The stock has slid in premarket owing to the quarterly loss as the company announced quarterly results for Q4 and FY2021.
Q4 and FY2021 Results
On Tuesdays, after the regular trading hours, TOST announced the results for Q4 and FY2021. The revenue for Q4 2021 was $512 million, an increase of 111% as compared to Q4 2020. The gross profit for the quarter was $73 million, depicting an increase of 55% compared to Q4 2020. The net income generated during Q4 2021 was $2 million against a net loss of $61 million for Q4 2020. During fiscal 2021, the company generated revenue of $1.7 billion, an increase of 107% compared to fiscal 2020. The net loss for the fiscal year 2021 was $487 million against $248 million for FY2020.
Financial Outlook for Q1 and FY2022
TOST also released the outlook for Q1 and FY2022. The company expects to generate revenue of $469 to $499 million during Q1 2022, while the adjusted EBITDA is expected to lie in a range of $(65) to $(55) million. For the full year 2022, the expected revenue stands between $2.3 and $2.4 billion, while the adjusted EBITDA is expected to remain in the range of $(240) to $(200) million.
TOST Executive Commentary
While commenting on the results, Chris Comparato, CEO of TOST, said that due to aftereffects of the pandemic, the restaurant industry suffered terrible times in 2021, but the growth in several metrics is an indicator that the demand for Toast platform as a restaurant operator is on a rise. The company is committed to its goal of becoming a trusted platform for the restaurant industry.
Future Outlook for TOST
According to analysts, despite the apparent falling trend, the short-term signals are indicating positive signals for the stock. At the current level, the stock holds an excellent buying opportunity as the TOST has got a fair chance of performing well in the next couple of weeks.
