Toast Inc (NYSE:TOST) stock fell 3.98% (As on February 20, 11:23:57 AM UTC-4, Source: Google Finance) after the company posted mixed results for the fourth quarter of FY 24. Total recurring gross profit streams grew 39% year-over-year in Q4, with subscription revenue increasing 41% and gross profit rising 47%. SaaS ARR grew 32% year-over-year, and SaaS ARPU increased 5%. Toast Capital contributed $43 million in gross profit during Q4, with full-year originations exceeding $1 billion. Default rates improved due to optimized underwriting processes. Net take rate for Q4 payments was 56 basis points, supported by cost optimization and targeted price adjustments. GAAP net income was $33 million in Q4 2024 compared to GAAP net loss of $(36) million in Q4 2023. Adjusted EBITDA was $111 million in Q4 2024 compared to Adjusted EBITDA of $29 million in Q4 2023. Net cash provided by operating activities of $147 million and Free Cash Flow of $134 million in Q4 2024, compared to net cash provided by operating activities of $92 million and Free Cash Flow of $81 million in Q4 2023. Non-GAAP subscription services and financial technology solutions gross profit grew 39% year over year to $392 million. Total Locations increased 26% year over year to approximately 134,000. Gross Payment Volume (GPV) increased 25% year over year to $42.2 billion.

TOST in the fourth quarter of FY 24 has reported the adjusted earnings per share of 5 cents, missing the analysts’ estimates for the adjusted earnings per share of 6 cents, according to the Zacks Consensus Estimate. The company had reported the adjusted revenue growth of 35.9 percent to $1.34 billion in the fourth quarter of FY 24, beating the analysts’ estimates for revenue by 2%.

Toast expects to achieve 23%-25% growth in recurring gross profit streams for FY 2025 and projects adjusted EBITDA of $510 million to $530 million, reflecting a 30% margin at the midpoint. For Q1 2025, adjusted EBITDA is guided at $100 million to $110 million. Management stated that higher growth is anticipated in the first half of the year. International and retail markets are expected to surpass 10,000 customer locations in 2025, supported by increased R&D investments and go-to-market capacity.

For the first quarter ending March 31, 2025, Toast expects to report Non-GAAP subscription services and financial technology solutions gross profit in the range of $385 million to $395 million (27-30% growth compared to Q1 2024).