Restaurant software platform Toast (NYSE:TOST) will be announcing earnings results tomorrow after market close. Here's what to expect.
Last quarter Toast reported revenues of $675 million, up 58.4% year on year, beating analyst revenue expectations by 4.22%. It was a very strong quarter for the company, with very optimistic guidance for the next quarter and 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 48.2% year on year to $720.9 million, slowing down from the 105% year-over-year increase in revenue the company had recorded in the same quarter last year. Adjusted loss is expected to come in at -$0.06 per share.
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 7.75%.
Looking at Toast's peers in the vertical software segment, some of them have already reported Q3 earnings results, giving us a hint of what we can expect. Q2 Holdings delivered top-line growth of 14.2% year on year, missing analyst estimates by 1.37% and 2U reported revenue decline of 0.05% year on year, exceeding estimates by 0.09%. Q2 Holdings traded down 5.64% on the results, and 2U was up 1.88%. Read our full analysis of Q2 Holdings's results here and 2U's results here.
The technology sell-off has been putting pressure on stocks since last November and while some of the software stocks have fared somewhat better, they have not been spared, with share price declining 9.2% over the last month. Toast is up 9.11% during the same time, and is heading into the earnings with analyst price target of $24.60, compared to share price of $18.68.
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The author has no position in any of the stocks mentioned.