Toast, Inc. (NYSE:TOST) witnessed a remarkable surge of nearly 14% in its share price Wednesday following the release of its first-quarter 2024 financial results.
What To Know: Toast, renowned for its all-in-one digital technology platform tailored for restaurants, reported robust performance for the quarter ended March 31 after the market close on Tuesday.
CEO and co-founder Aman Narang expressed satisfaction with the company's strong start in 2024, highlighting significant achievements in scaling restaurant locations and driving annualized recurring run-rate (ARR) growth. Notable financial highlights for the first quarter included ARR reaching $1.3 billion, with gross payment volume (GPV) rising by 30% year-over-year to $34.7 billion.
Toast's outlook for the second quarter and full-year 2024 reflects continued optimism, with anticipated growth in non-GAAP subscription services and financial technology solutions gross profit. Recent business highlights include the introduction of the Restaurant Management Suite and the Digital Storefront and Marketing Suites, aimed at enhancing restaurant operations and digital presence.
The momentum in Toast shares accelerated on Wednesday following positive analyst coverage from multiple firms. Canaccord Genuity analyst David Hynes maintained Toast with a Buy and raised the price target from $22 to $28, suggesting ongoing confidence in Toast's potential for growth.
Wells Fargo raised its price target from $17 to $19, Needham maintained a Buy rating and raised its price target from $26 to $30, Keefe, Bruyette & Woods maintained a Market Perform rating and raised its price target to $26 and RBC Capital lifted its price target from $23 to $27.
Toast's strong performance underscores its position as a leading provider of digital solutions for the restaurant industry, committed to driving growth, innovation and customer satisfaction.
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TOST Price Action: Toast shares were up 13.7% at $26.98 Wednesday afternoon, according to Benzinga Pro.
Image: courtesy of Toast Inc