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Toast Inc. shares popped in Tuesday’s after-hours action after the maker of technology for the restaurant industry beat revenue expectations for the latest quarter and logged positive free cash flow for the first time since its initial public offering.
The company notched a second-quarter net loss of $98 million, or 19 cents a share, compared with a loss of $54 million, or 11 cents a share, in the year-prior period. The FactSet consensus was for a 14-cent GAAP loss per share.
Toast
TOST,
also recorded adjusted earnings before interest, taxes, depreciation and amortization (Ebitda) of $15 million, whereas it posted a $33 million loss on the metric a year prior. Analysts were modeling a $3 million adjusted Ebitda loss for the latest quarter.
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The company posted free cash flow of $39 million, its first positive performance on the metric since Toast went public about two years ago, “as we remain focused on driving lean, durable growth,” according to Chief Executive Chris Comparato.
“We’re still in the early stages of the opportunity ahead of us, and with proof points including our new Marriott deal and adding a record number of restaurant locations, we are more confident than ever in our ability to penetrate the entire restaurant [total addressable market,” he said in a release.
Revenue jumped to $978 million from $675 million, while the FactSet consensus was for $943 million.
The stock rose 12% in Tuesday’s extended session.
For the third quarter, the company models $1.01 billion to $1.04 billion in revenue, while the FactSet consensus was for $1.00 billion.
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