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Toast (TOST) Q4 Earnings Report Preview: What To Look For

StockStory - Wed Feb 14, 1:02AM CST

TOST Cover Image

Restaurant software platform Toast (NYSE:TOST) will be announcing earnings results tomorrow after market close. Here's what to look for.

Last quarter Toast reported revenues of $1.03 billion, up 37.2% year on year, missing analyst expectations by 0%. It was a weaker quarter for the company, with underwhelming revenue guidance for the next quarter and full-year revenue guidance missing analysts' expectations.

Is Toast buy or sell heading into the earnings? Read our full analysis here, it's free.

This quarter analysts are expecting Toast's revenue to grow 32.3% year on year to $1.02 billion, slowing down from the 50.2% year-over-year increase in revenue the company had recorded in the same quarter last year. Adjusted loss is expected to come in at -$0.01 per share.

Toast Total Revenue

Majority of analysts covering the company have reconfirmed their estimates over the last thirty days, suggesting they are expecting the business to stay the course heading into the earnings. The company only missed Wall St's revenue estimates once over the last two years, and has on average exceeded top line expectations by 4.4%.

Looking at Toast's peers in the vertical software segment, some of them have already reported Q4 earnings results, giving us a hint of what we can expect. Agilysys delivered top-line growth of 21.3% year on year, beating analyst estimates by 0.8% and PTC reported revenues up 18.1% year on year, exceeding estimates by 2.3%. Both companies (Agilysys and PTC) traded flat on the results.

Read our full analysis of Agilysys's results here and PTC's results here.

There has been positive sentiment among investors in the vertical software segment, with the stocks up on average 3.6% over the last month. Toast is up 12.3% during the same time, and is heading into the earnings with analyst price target of $19.8, compared to share price of $19.42.

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