Toast (TOST) investor relations material

Business performance and growth

• Achieved over 6x growth in both top and bottom lines since IPO, with market leadership in the U.S. SMB restaurant sector and expansion into international, enterprise, and retail verticals.

• On track for over $800 million in adjusted EBITDA this year, maintaining consistent GAAP profitability.

• ARPU has increased from $8,000–$9,000 at IPO to over $13,000, driven by platform expansion and product adoption.

• Core business market share has grown from 4–5% to over 20% of locations, with even higher share in GPV.

• Focus remains on doubling market share in the core business and scaling new TAMs with added sales capacity.

Product innovation and AI strategy

• Transitioned from a point-of-sale application to a comprehensive platform serving guests, employees, and suppliers.

• AI-enabled products, especially Toast IQ Grow, are driving significant customer value, with early adopters seeing up to 40% sales growth.

• Toast IQ Grow is on pace to be the fastest product to reach $10 million in ARR, leveraging data and AI to automate marketing, SEO, and guest engagement.

• AI is expected to unlock new service TAMs, enabling automation of tasks like bookkeeping, marketing, and labor scheduling.

• Long-term ARPU growth is anticipated as AI products expand and take on more complex, high-value services.

Expansion into new verticals and markets

• Retail, international, and enterprise verticals have grown from sub-$10 million to a projected $200 million in ARR this year, outpacing the early growth of the core business.

• Expansion strategy targets tier 1 cities globally, with a focus on high-GPV, complex businesses and leveraging a shared multi-tenant platform.

• Retail vertical, including grocery and convenience stores, is showing strong ARPU and customer traction, following the playbook of deep vertical integration.

• New sub-verticals like fuel/gas stations and sports entertainment are being pursued based on customer demand and market opportunity.

• Evaluation of new TAMs is guided by a top-down strategic plan and bottom-up customer signals, prioritizing high-GPV segments.