Toast said revenue grew 50% in the fourth quarter.
Courtesy of Toast
Toast
stock fell sharply in premarket trading Thursday after the cloud-based company posted a wider-than-expected loss in the fourth quarter.
Toast
(ticker: TOST), a cloud-based platform for restaurant operations, reported a loss of $99 million, or 19 cents a share in the fourth quarter. Analysts surveyed by FactSet were expecting a narrower loss of 5 cents.
However, revenue grew 50% to $769 million, beating estimates of $753 million. Toast sees revenue of $745 million to $775 million in the first quarter of 2023 against analysts’ estimates of $751 million.
The stock has had a strong start to the year, rallying 44% as of Wednesday’s close, but looks set to erase some of those 2023 gains in Thursday trading. Shares were falling 15.1% to $22.05.
Toast’s 2023 outlook also provided no real reason to be alarmed. The company sees full-year revenue of $3.57 billion to $3.66 billion, broadly in line with the $3.62 billion forecast by analysts. Guidance for an adjusted Ebitda loss of $10 million to $30 million was also in line with the consensus for a $19 million loss.
Barron’s selected Toast as a stock pick earlier this month, arguing that the platform is a win-win for restaurants and their customers and that the stock’s future looks more appetizing.
Write to Callum Keown at callum.keown@barrons.com
Credit: marketwatch.com