Toast (TOST) Morgan Stanley Technology, Media & Telecom Conference summary

2024 accomplishments and strategic focus

• Achieved record net new live locations and reached GAAP profitability, with $400M incremental ARR and $160B GPV, while expanding margins by 20 points.

• Launched a retail product and saw strong early signals in new markets, including enterprise and international.

• Restructured leadership and aligned resources to key priorities, emphasizing resilience and adaptability.

• Focused on expanding the all-in-one platform, investing in AI and employee products to increase customer stickiness and satisfaction.

• Maintained 5-10% of investments in R&D for long-term bets, such as consumer experience and personalized restaurant solutions.

Market expansion and growth opportunities

• U.S. restaurant business holds 15% market share, with significant runway for further penetration and flywheel effects in core markets.

• New TAMs in retail, international, and enterprise are scaling, with a goal to reach 10,000 locations across these segments.

• International sales teams show higher productivity than U.S. at similar scale, leveraging local teams and adapting go-to-market strategies.

• Retail adjacencies like grocery and convenience stores show strong early traction, with higher GPV per location and dedicated sales investment.

• Long-term vision includes expanding into additional verticals and powering broader in-person commerce.

Competitive landscape and core business

• Market remains highly competitive and fragmented, but continued R&D investment and customer focus drive differentiation.

• Social proof and density in core U.S. markets accelerate growth and conversion rates.

• Core business remains the foundation for new market investments and teaches valuable lessons for TAM expansion.