Restaurants

Toast to lay off 550, lifts Q4, FY 2023 results

Image: Toast Inc.

February 16, 2024

Toast Inc., a digital technology platform for restaurants, plans to lay off approximately 550 employees as part of a restructuring plan, the company announced in an SEC filing that also included its Q4 and full year 2023 results.

The company expects to incur restructuring and restructuring-related charges of approximately $45 to $55 million, primarily related to severance and severance-related costs and certain other costs related to facilities. It expects to complete the restructuring plan by the end of fiscal year 2024.

The company also lifted its Q4 and FY 2023 sales and improved its losses.

Highlights include:

• Revenue rose 35% from $769 million in Q4 2022 to $1 billion for the quarter ending Dec. 31, 2023.
• Net loss improved from $99 million to $36 million in the comparative quarters.
• EPS improved from a 19-cent loss to a 7-cent loss on both a basic and diluted basis.
• Full-year revenue rose 42% from $2.73 billion in 2022 to $3.9 billion in 2023.
• Full-year net loss improved from $275 million to $246 million.
• Full-year EPS loss improved from 72 cents to 47 cents.

Shares traded today at $22.24 against a 52-week range of $13.77 to $27.

The $1 billion in quarterly revenue missed analyst expectations by $20 million while the GAAP EPS loss of 7 cents surpassed expectations by 4 cents, according to Seeking Alpha.

Effective Jan. 1, 2024, Aman Narang was named CEO, taking over from Chris Comparato. Narang served as Toast's co-president starting in 2012 and chief operating officer since June 2021.