BOSTON— Toast (NYSE: TOST), the all-in-one digital technology platform for restaurants, has turned a significant corner in its financial journey, reporting its first year of profitability in 2024. The company posted a net income of $19 million for the year, a stark turnaround from its $246 million net loss in 2023.
CEO and Co-Founder Aman Narang called 2024 a “transformational year,” crediting strong growth in Toast’s customer base and expansion into new markets. “Our record location adds show the momentum with our core customer base, and the positive signals across our newer customer groups: enterprise, international, and food and beverage retail,” Narang said.
In 2022, Mr. Narang was honored with the “Business and Entrepreneurship” award at the annual New England Choice Awards gala.
Record Growth Fuels Profitability
The restaurant technology firm saw a surge in demand for its services, adding a record 28,000 net new locations, bringing its total footprint to approximately 134,000 locations by year’s end. Annualized recurring revenue (ARR) climbed 34% to exceed $1.6 billion, driven by an increase in gross payment volume (GPV), which grew 26% year-over-year to $159.1 billion.
Toast’s financial technology solutions and subscription services also saw strong performance, with gross profit in this category rising 34% to $1.4 billion. The company’s Adjusted EBITDA, a key measure of operational profitability, skyrocketed from $61 million in 2023 to $373 million in 2024.
Q4 2024: A Strong Finish
Toast ended the year on a high note, reporting $33 million in net income for Q4, compared to a $36 million loss in the same quarter of 2023. Other key Q4 highlights include:
- Gross Payment Volume: $42.2 billion (+25% YoY)
- GAAP Operating Income: $32 million (vs. a $56 million loss in Q4 2023)
- Adjusted EBITDA: $111 million (up from $29 million in Q4 2023)
- Net Cash Provided by Operations: $147 million
What’s Next for Toast?
After its first profitable year, Toast plans to double down on its growth strategy in 2025. The company expects Adjusted EBITDA to rise to $510 million-$530 million for the full year and aims to expand its presence in enterprise, international, and food retail sectors.
In 2024, Toast also partnered with Uber Technologies to expand restaurant delivery options and secured major deals with Ascent Hospitality Management (covering 500 Perkins and Huddle House locations) and Mendocino Farms (a fast-casual chain with over 70 locations).
As Toast solidifies its position as a leader in restaurant technology, investors and industry watchers will be eager to see how the company builds on its momentum and sustains profitability in 2025 and beyond.
