Toast, Inc. · NYSE:TOST
Toast — Q1 2022 Earnings Presentation
25 slides from Toast's earnings presentation, May 12, 2022
Slide 1: First Quarter 2022 Financial Results
First Quarter 2022 Financial Results
Slide 2: Disclaimer
Disclaimer This presentation includes certain “forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995, including statements regarding the future results of operations, financial condition, business strategy, plans and objectives of management for futur
Slide 3: Our Mission
Our Mission To empower the restaurant © 2022 Toast, Inc. All Rights Reserved. community to delight their guests, do what they love, and thrive. 3
Slide 4: Investment Highlights
Investment Highlights Large and Growing TAM Purpose-built for restaurants, one of the largest vertical markets © 2022 Toast, Inc. All Rights Reserved. Differentiated Product Offering Cloud-based, all-in-one digital technology platform with integrated payment processing Proven Durable Growth at Scale
Slide 5: The Restaurant Industry Is One Of The Largest Industries
860K Locations in the US1 The Restaurant 22M © 2022 Toast, Inc. All Rights Reserved. Industry Is One Locations Globally2 Of The Largest Industries In U.S. And ~$800B Annual U.S. Sales in 2021 Globally (~3% of GDP)3 11M+ Employees in the US4 1 IBISWorld. 2 Euromonitor International Consumer Foodservi
Slide 6: Restaurants are Complex Businesses
Restaurants are Complex Businesses © 2022 Toast, Inc. All Rights Reserved. Integrated Payroll & HR Reporting & Waitlists Kitchen Point of Sale Websites Payments Analytics Operations Takeout Benefits Reservations Kiosk Marketing Financial Accounting Inventory & Loans Drive Thru Scheduling Table Manag
Slide 7: Better Together: We Benefit the Entire Restaurant Ecosystem
Better Together: We Benefit the Entire Restaurant Ecosystem Higher tips, better Improved service employee experience quality © 2022 Toast, Inc. All Rights Reserved. Happy Happy Employees Guests Improved wage Memorable & tailored & benefits access experiences Lower turnover, improved Restaurant Great
Slide 8: The Toast Platform: Better Together
The Toast Platform: Better Together Full Suite of Toast Products Continued Runway for Growth 3 Base Products © 2022 Toast, Inc. All Rights Reserved. • Point of Sale • Toast Hardware Payment Processing 15+ Elective Products Point of Sale Digital Ordering & Delivery Team Management Fintech Products To
Slide 9: This Is Just The Beginning For Toast
This Is Just The Beginning For Toast Massive TAM 6% © 2022 Toast, Inc. All Rights Reserved. $110B+ Global TAM $55B US TAM $15B SAM1 $0.6B Q1 2022 ARR Sources: U.S. Bureau of Labor Statistics, IBISWorld, National Restaurant Association (2021 State of the Restaurant Industry), Freedonia Group. Note: G
Slide 10: Our Differentiated Go-To-Market Strategy
Our Differentiated Go-To-Market Strategy • Hyper-localized go-to-market motion Approx. 2/3rd © 2022 Toast, Inc. All Rights Reserved. of new locations come through inbound channels • Focus on building strong customer communities Approx. 1/5 th • Improving sales productivity from increasing category p
Slide 11: First Quarter Financial Results
First Quarter Financial Results © 2022 Toast, Inc. All Rights Reserved.
Slide 12: Integrated Software and Payments Model
Integrated Software and Payments Model Recurring Financial Technology Subscription Services Solutions © 2022 Toast, Inc. All Rights Reserved. $ One-Time Hardware Professional Services 12
Slide 13: Rapid and Sustainable Growth at Scale
Rapid and Sustainable Growth at Scale ($M) Total Revenue $600 $535 $512 $486 $63 Subscription Services Revenue © 2022 Toast, Inc. All Rights Reserved. $500 $54 $426 $46 $91 $80 Financial Technology Solutions Gross Profit $38 $77 $400 $74 $282 $300 $31 Recurring $55 Financial Technology Solutions COG
Slide 14: ARR, our Core Operational Metric, Also Scaling Rapidly
ARR, our Core Operational Metric, Also Scaling Rapidly Components of Annualized Recurring Run-Rate (ARR)($M) Annualized Recurring Run-Rate (ARR) $637 © 2022 Toast, Inc. All Rights Reserved. $568 Subscription ARR $544 $494 $384 $ Payments ARR $637M Q1-21 Q2-21 Q3-21 Q4-21 Q1-22 as of 3/31/2022 % YoY
Slide 15: New Location Adds Accelerate to Quarterly Record
New Location Adds Accelerate to Quarterly Record 70k 8.000k 62k 7.000k 60k 57k 52k >5,000 for the first6.000k © 2022 Toast, Inc. All Rights Reserved. 48k 50k quarter ever 43k 5.000k 40k 4.000k 30k 3.000k 20k 2.000k 10k 1.000k 0k .000k Q1-21 Q2-21 Q3-21 Q4-21 Q1-22 Net New Locations Total Locations 1
Slide 16: Strong Subscription ARPU Growth Trajectory
Strong Subscription ARPU Growth Trajectory % of Locations Using 4+ Elective Products1 Subscription ARPU for Bookings2 Doubled in Two Years © 2021 Toast, Inc. All Rights Reserved. 60% 59% 57% 55% 51% 48% 46% 44% 40% Q1-20 Q2-20 Q3-20 Q4-20 Q1-21 Q2-21 Q3-21 Q4-21 Q1-22 Q1-20 Q1-21 Q1-22 1Analysis con
Slide 17: GPV Growth Boosted by Strong Customer Performance
GPV Growth Boosted by Strong Customer Performance Gross Payment Volume ($B) © 2022 Toast, Inc. All Rights Reserved. $17.8 $17.1 $16.5 $14.4 $9.0 Q1-21 Q2-21 Q3-21 Q4-21 Q1-22 % YoY Growth: 40% 267% 123% 125% 98% 17 Note: % YoY grow th may not tie due to rounding. See Appendix for definition of GPV.
Slide 18: Rapid Gross Profit Expansion
Rapid Gross Profit Expansion Total Non-GAAP Gross Profit ($M) $134 $116 © 2022 Toast, Inc. All Rights Reserved. $109 $101 $78 Attractive gross Recurring (Subscription + Payments) margin from $0 recurring revenue One-Time ($5) ($8) ($17) (Hardware + Prof. Services) ($34) ($33) Q1-21 Q2-21 Q3-21 Q4-21
Slide 19: Highly Efficient GTM Approach With Proven Scalability
Highly Efficient GTM Approach With Proven Scalability Flywheel Effect: As penetration in a market increases, inbound Proven Scalability: Our GTM approach has proven it efficiently bookings accelerate driving higher productivity and efficiency scales across markets, contributing to healthy payback pe
Slide 20: Maintaining Efficiency While Driving Rapid Growth
Maintaining Efficiency While Driving Rapid Growth Sales and Marketing Expense (Non-GAAP basis) as a % of Recurring Revenue © 2021 Toast, Inc. All Rights Reserved. 1Q20 - 1Q22 CAGR ● ARR: 76% Long-Term Expectation ● Locations: 43% Operating Leverage on S&M expense as we scale Q1-19 Q2-19 Q3-19 Q4-19
Slide 21: Appendix
Appendix © 2022 Toast, Inc. All Rights Reserved.
Slide 22: Defining Key Terms
Defining Key Terms Gross Payment Volume (GPV) • Sum of total dollars processed through the Toast payments platform across all restaurant locations in a given period Annualized Recurring Run-Rate (ARR) • Sum of twelve times the subscription component of MRR and four times the trailing-three-month cum
Slide 23: Quarterly Gross Profit GAAP to Non-GAAP Reconciliation
Quarterly Gross Profit GAAP to Non-GAAP Reconciliation © 2022 Toast, Inc. All Rights Reserved. Note: Numbers may not tie due to rounding. 23
Slide 24: Quarterly Adj. EBITDA GAAP to Non-GAAP Reconciliation
Quarterly Adj. EBITDA GAAP to Non-GAAP Reconciliation © 2022 Toast, Inc. All Rights Reserved. 24 Note: Numbers may not tie due to rounding.
Slide 25: Quarterly Free Cash Flow GAAP to Non-GAAP Reconciliation
Quarterly Free Cash Flow GAAP to Non-GAAP Reconciliation © 2022 Toast, Inc. All Rights Reserved. Note: Numbers may not tie due to rounding. 25