The share prices for Toast experienced a significant rise on Friday’s trading session. The restaurant software vendor’s shares surged as the company posted it beat revenue estimations.
Toast Shares Surged by 8%
Toast recorded an 8% surge in share prices on Friday’s trading session. The restaurant software vendor recently shared its earnings for the second quarter of 2022.
Toast posted earnings that were stronger than the estimations made by the analysts for the respective quarter.
The restaurant software vendor confirmed that the locations it has been serving have surged 40% in Q2 2022.
Toast is known for being the operating system provider for restaurants. It has a very reliable and advanced technology that is very advantageous for restaurant operators.
The technology offered by Toast is used by all kinds of eateries and for all kinds of eating options such as delivery, takeout, and dine-in.
Toast’s Pandemic Business Growth
It was during the pandemic that Toast’s business grew tremendously. Its products saw significant growth in product demand and adoption.
As the restaurants had to close dine-in due to the lockdowns, they had to switch to contactless and digital mediums to keep operating.
Therefore, many restaurants and eateries started adopting the operating software provided by Toast. This helped Toast record a tremendous rise in sales and revenue.
Toast’s Q2 2022 Earnings
Toast has reported that in the second quarter, its revenue has risen by 58% compared to the second quarter of 2021. The revenue Toast has generated is worth $675 million.
The analysts had estimated that the revenue Toast may generate in the second quarter would be $651 million.
Toast has also increased its earnings guidance for the third quarter. In addition to the third quarter, Toast has also increased its guidance for the rest of the year.
Toast has also increased its full-year adjusted earnings as well as revenue.
Rebound in Toast’s Share Prices
The rise in the share prices for Toast is a strong indication of the rise in the prices of tech stocks. On Friday, several other tech companies witnessed a similar trend in their share prices.
Despite experiencing an 8% surge in the Friday trading session, the overall situation of Toast’s shares from year-to-date is still -42%.
However, it is a good sign that the share prices for Toast have surged 68% following a YTD low it hit back in May.
In recent years, Toast had to reduce its workforce in order to deal with the reduction in sales and revenue. So far, the company has increased its workforce at a significant rate. Yet the workforce is still 6% lower than the high workforce it had during the pandemic.