BOSTON – Toast Inc. (NYSE:TOST) reported combined second-quarter outcomes on Tuesday, with earnings falling wanting expectations regardless of better-than-expected income progress. The restaurant expertise firm’s shares dropped 2.6% in after-hours buying and selling following the discharge.

Toast posted adjusted earnings per share of $0.02 for Q2, lacking analyst estimates of $0.11. Nonetheless, income got here in at $1.24 billion, surpassing the consensus forecast of $1.22 billion. The corporate’s top-line progress was pushed by a 26% YoY enhance in gross fee quantity to $40.5 billion.

“Our team executed incredibly well in the second quarter and delivered strong results, including adding a record number of net locations and achieving GAAP profitability ahead of expectations,” stated Toast CEO and Co-Founder Aman Narang.

The corporate reported GAAP web revenue of $14 million for the quarter, in comparison with a web lack of $98 million in the identical interval final 12 months. Adjusted EBITDA improved considerably to $92 million from $15 million in Q2 2023.

Toast added roughly 8,000 web new areas in Q2, bringing its whole to round 120,000 areas, up 29% YoY. The corporate’s annualized recurring run-rate (ARR) grew 29% YoY to $1.5 billion as of June 30.

For Q3, Toast expects non-GAAP subscription companies and monetary expertise options gross revenue between $345 million and $355 million. The corporate raised its full-year 2024 outlook, now projecting non-GAAP subscription companies and monetary expertise options gross revenue of $1.34 billion to $1.36 billion.

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