Earnings To Watch: Toast Reports Q4 Results Tomorrow

Kayode Omotosho /
2022/02/14 5:48 am EST

Restaurant software platform Toast (NYSE:TOST) will be announcing earnings results tomorrow afternoon. Here's what to expect.

Last quarter Toast reported revenues of $486.3 million, up 105% year on year, beating analyst revenue expectations by 12.1%. It was a very strong quarter for the company, with an impressive beat of analyst estimates and an exceptional revenue growth.

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 87.5% year on year to $454.8 million, Adjusted loss is expected to come in at -$0.34 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 has a history of exceeding Wall St's expectations, beating revenue estimates every single time since going public on average by 12.1%.

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. Unity (NYSE:U) delivered top-line growth of 43.3% year on year, beating analyst estimates by 6.81% and Doximity (NYSE:DOCS) reported revenues up 66.7% year on year, exceeding estimates by 13.4%. Unity traded up 17.5% on results, Doximity was up 24%. Read our full analysis of Unity's results here and Doximity's results here.

Investors in the software segment have had steady hands going into the earnings, with the stocks up on average 1.62% over the last month. Toast is up 15.3% during the same time, and is heading into the earnings with analyst price target of $61.9, compared to share price of $27.99.

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The author has no position in any of the stocks mentioned.