Updated quarterly. Last updated: September 24, 2021.
|IPO Date||Sept. 21, 2021|
|TTM Revenue||$1.1 billion|
|TTM Adj. EBITDA||$6.4 million|
|TTM FCF||$7.0 million|
What Toast Does—Its Products and Services
Toast provides restaurants with a single platform that helps them run their business.
Specifically, they help them with five things:
- Point of Sale (POS)
- Digital ordering and delivery
- Marketing and loyalty programs
- Team management
Toast's product portfolio
How Toast Makes Money—Its Business Model
Toast has four revenue sources:
- Subscription services–Fees charged to customers for access to their SaaS products like its POS and kitchen display system.
- Financial technology solutions–Fees earned from processing payments (orders). It's calculated as a percentage of the total transaction (order) amount, plus a fixed per-transaction fee.
- Hardware–Earned from the sale of terminals, tablets, handhelds, and related devices and accessories.
- Professional services–Fees earned from installing their hardware and software.
Gross profit per product
Toast's Key Business Metrics
Toast uses two metrics to measure the health of its business:
- Gross payment volume (GPV)
- Annualized recurring run-rate (ARR)
Gross payment volume (GPV)
Gross payment volume is the total amount of dollars processed through the Toast payments platform across all restaurant locations in a given period.
Fees from processing payments make up the largest chunk of its revenue. So the more dollars they process, the more money they make.
Annualized recurring run-rate (ARR)
Their explanation of this metric is a mouthful. And frankly, it's confusing as hell. If you want to bend your brain, read their explanation on page 24 of its S-1.
Toast did us a solid and listed its biggest competitors on this page.