Earnings QualityManagement failed to provide clarity on the magnitude of the beat driven by pricing and one-time benefits, leading to investor concerns about the quality of the results.
Growth ConcernsA soft spot in the print was GPV growth of 24%, which missed Street by 1%, and Toast expects GPV/location decline of -3% to continue over the next few quarters.
ValuationTOST shares are getting expensive at nearly 11x EV/R normalized revenue, indicating potential overvaluation concerns.