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Shares of Toast Inc. were getting singed in Tuesday’s extended session after the maker of software and payments tools for the restaurant industry slightly lowered the upper range of its full-year revenue forecast, a move one analyst deemed “disappointing.”
Toast
TOST,
reported a third-quarter net loss of $31 million, or 9 cents a share, compared with a loss of $98 million, or 19 cents a share, in the year-earlier period. The FactSet consensus was for a 10-cent loss on a per-share basis.
The company also recorded adjusted earnings before interest, taxes, depreciation and amortization (Ebitda) of $35 million, while analysts were expecting $20 million.
Toast shares plunged nearly 20% in after-hours trading.
“Our focus on balancing durable top-line growth with efficiency led to our seventh consecutive quarter of adjusted Ebitda margin expansion,” Chief Executive Chris Comparato said in a release.
Revenue rose to $1.032 billion from $752 million and matched the FactSet consensus.
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The company expects $1.00 billion to $1.03 billion in revenue for the fourth quarter, along with $5 million to $15 million in adjusted Ebitda. Analysts were looking for $1.03 billion in revenue and $12 million in adjusted Ebitda.
Toast narrowed its full-year forecast and now expects $3.83 billion to $3.86 billion, whereas it was calling for $3.81 billion to $3.87 billion before. But the change “means lowering the top end of the guide,” Mizuho analyst Dan Dolev wrote in a note to clients titled: “Disappointing Top-Line Guidance.”
He added that it was “nice to see” Toast upping its full-year forecast for adjusted Ebitda, which now calls for $38 million to $48 million, versus $15 million to $35 million previously.
