Toast (TOST) UBS Global Technology and AI Conference summary

2024 performance and strategic reset

• 2024 marked a reset with a company restructure and a new CEO, setting new priorities and capital allocation strategies.

• Four key priorities: deepen core TAM, drive product innovation, expand into new TAMs, and maintain operating leverage.

• Recurring gross profit grew over 30%, with $300 million in EBITDA added and more net location adds than 2023.

• Margin expansion in 2025 expected to be 100–200 basis points as investments shift toward growth vectors.

Expansion into new markets and segments

• International and retail are early but promising growth areas, with positive customer reception and sound unit economics.

• International locations have lower GPV and SaaS ARPU, but ARPU is expected to rise as the platform expands.

• Retail GPV per location is similar or slightly better than U.S. restaurants, with higher ARPU, though still early in development.

Location growth and long-term ambition

• On track for more net location adds in 2024 than 2023, with long-term ambition to serve hundreds of thousands of locations.

• Most 2025 net adds will come from SMB and mid-market, with international and retail contributing more over time.