Slide 1: Third Quarter Fiscal Year 2021 Financial Results
Third Quarter Fiscal Year 2021 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 © 2021 Toast, Inc. All Rights community to delight their guests, do what they love, Reserved. and thrive. 3
Slide 4: Investment Highlights
Investment Highlights Purpose-built for restaurants, one of the largest vertical markets © 2021 Toast, Inc. All Rights Cloud-based, all-in-one technology platform with integrated payment processing Reserved. Differentiated and efficient go-to-market engine and customer success strategy Experiencing ra
Slide 5: The Restaurant Industry Is One of the Largest Industries in the U.S. and Globally
860K Locations in the US1 The Restaurant 22M Industry Is One Locations Globally2 © 2021 Toast, Inc. All Rights Of The Largest Industries In $700B Reserved. U.S. And Annual U.S. Sales in 2020 Globally (3% of GDP)3 11M+ Employees in the US4 1 IBISWorld. 2 Euromonitor International Consumer Foodservice
Slide 6: Restaurants are Complex Businesses
Restaurants are Complex Businesses © 2021 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: The Toast Platform: Better Together
The Toast Platform: Better Together Restaurant Digital Ordering Marketing & Team Subscription Point of Sale Operations & Delivery Loyalty Management Services © 2021 Toast, Inc. All Rights Financial Integrated Payment Processing Financial Technology Products Reserved. Technology Solutions Reporting &
Slide 8: Better Together: We Benefit the Entire Restaurant Ecosystem
Better Together: We Benefit the Entire Restaurant Ecosystem Higher tips, better Improved service employee experience quality Happy Happy © 2021 Toast, Inc. All Rights Employees Guests Improved wage Memorable & tailored Reserved. & benefits access experiences Lower turnover, improved Restaurant Great
Slide 9: This Is Just The Beginning For Toast
This Is Just The Beginning For Toast Massive TAM 6% $110B+ Global TAM © 2021 Toast, Inc. All Rights $55B US TAM Reserved. $15B SAM1 $0.5B Q3 2021 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 rd Approx. 2/3 of new locations come through • Focus on building strong customer communities © 2021 Toast, Inc. All Rights inbound channels Reserved. • Improving sales productivity from increasing category position th Ove
Slide 11: Better Together: We Grow as our Customers Grow
Better Together: We Grow as our Customers Grow Full Suite of Toast Products Continued Runway for Growth 3 Base Products •Point of Sale •Toast Hardware Payment Processing © 2021 Toast, Inc. All Rights 15+ Elective Products Point of Sale Digital Ordering & Team Management Toast Go Delivery Payroll & T
Slide 12: End-to-End Data Insights Power Innovation
End-to-End Data Insights Power Innovation Preparation Time Restaurant Data Data Potential Driving Future Innovation © 2021 Toast, Inc. All Rights Pricing Sales By Channel Sensitivity Personalization Menu Item Ratings & Enhanced guest experience Omnichannel engagement Performance Reviews Order Loyalt
Slide 13: Our Growth Roadmap
Our Growth Roadmap Expand internationally Selectively pursue inorganic © 2021 Toast, Inc. All Rights growth Further develop our partner Invest in and Reserved. ecosystem expand our Fuel efficient Increase product location growth adoption of our platform with both new full suite of and existing produc
Slide 14: Third Quarter 2021 Financial Results
Third Quarter 2021 Financial Results © 2021 Toast, Inc. All Rights Reserved.
Slide 15: Powerful Business Model
Powerful Business Model Rapid and Sustainable Growth at Scale © 2021 Toast, Inc. All Rights Integrated Software and Payments Model Reserved. Strong Retention Dynamics Compelling Unit Economics 15
Slide 16: Integrated Software and Payments Model
Integrated Software and Payments Model Recurring Financial Technology Subscription Services Solutions $ © 2021 Toast, Inc. All Rights Reserved. One-Time Hardware Professional Services 16
Slide 17: ARR, a Core Operational Metric
ARR, a Core Operational Metric Annualized Recurring Run-Rate Total Revenue (ARR) Professional Services Subscription Hardware Services Subscription ARR © 2021 Toast, Inc. All Rights Financial Technology $1,433 M Reserved. Solutions Payments ARR Gross Profit LTM 9/30/2021 $544 M as of 9/30/2021 Financ
Slide 18: Drivers of ARR
Drivers of ARR Locations ARPU © 2021 Toast, Inc. All Rights Reserved. Drivers Drivers Localized Field Rep Growth Gross Payment Volume Efficiency Payment Margin Attach Rate Pricing 18
Slide 19: Rapid and Sustainable Growth at Scale
Rapid and Sustainable Growth at Scale ($M) Revenue ($M) % YoY Growth: 28% 19% 40% 193% 105% © 2021 Toast, Inc. All Rights Reserved. 19 Note: Unaudited. % YoY growth may not tie due to rounding.
Slide 20: Rapid and Sustainable Growth at Scale
Rapid and Sustainable Growth at Scale ($M) Annualized Recurring Run-Rate (ARR) % YoY Growth: 85% 77% 86% 118% 77% © 2021 Toast, Inc. All Rights Reserved. 20 Note: % YoY growth may not tie due to rounding.
Slide 21: Rapid and Sustainable Growth at Scale
Rapid and Sustainable Growth at Scale Gross Payment Volume ($B) % of Locations Using 4+ Elective Products Q3 2021 YoY Growth: 123% © 2021 Toast, Inc. All Rights Reserved. 21 Note: % YoY growth may not tie due to rounding.
Slide 22: Rapid Gross Profit Expansion
Rapid Gross Profit Expansion ($M) Total Non-GAAP Gross Profit ($M) % YoY Growth: 181% 209% 275% 218% 75% © 2021 Toast, Inc. All Rights Attractive gross margin from recurring revenue Reserved. Recurring $0 One-Time Note: % YoY growth may not tie due to rounding. Recurring includes subscription service
Slide 23: Proven Operating Leverage and Capital Efficiency
Proven Operating Leverage and Capital Efficiency Adjusted EBITDA as % of Total Revenue Free Cash Flow as % of Total Revenue © 2021 Toast, Inc. All Rights Reserved. Adj. EBITDA Free Cash $(0) $(7) $4 $11 $ (10) $0 $(32) $(14) $53 $ (21) ($M) Flow ($M) 23 Note: Numbers may not tie due to rounding. Ple
Slide 24: Toast in Review
Toast in Review © 2021 Toast, Inc. All Rights Reserved. Large and Proven Growth Healthy Unit Durable Growth Growing TAM at Scale Economics is a Priority 24
Slide 25: Appendix
Appendix © 2021 Toast, Inc. All Rights Reserved.
Slide 26: 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 27: Quarterly Gross Profit GAAP to Non-GAAP Reconciliation
Quarterly Gross Profit GAAP to Non-GAAP Reconciliation © 2021 Toast, Inc. All Rights Reserved. 27 Note: Unaudited. Numbers may not tie due to rounding.
Slide 28: Quarterly Adj. EBITDA GAAP to Non-GAAP Reconciliation
Quarterly Adj. EBITDA GAAP to Non-GAAP Reconciliation © 2021 Toast, Inc. All Rights Reserved. 28 Note: Unaudited. Numbers may not tie due to rounding.
Slide 29: Quarterly Free Cash Flow GAAP to Non-GAAP Reconciliation
Quarterly Free Cash Flow GAAP to Non-GAAP Reconciliation © 2021 Toast, Inc. All Rights Reserved. 29 Note: Unaudited. Numbers may not tie due to rounding.