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Toast Gross Margin %

: 16.64% (As of Mar. 2022)
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Gross Margin % is calculated as gross profit divided by its revenue. Toast's Gross Profit for the three months ended in Mar. 2022 was $89 Mil. Toast's Revenue for the three months ended in Mar. 2022 was $535 Mil. Therefore, Toast's Gross Margin % for the quarter that ended in Mar. 2022 was 16.64%.


The historical rank and industry rank for Toast's Gross Margin % or its related term are showing as below:

TOST' s Gross Margin % Range Over the Past 10 Years
Min: 9.32   Med: 17.01   Max: 18.42
Current: 17.06


During the past 3 years, the highest Gross Margin % of Toast was 18.42%. The lowest was 9.32%. And the median was 17.01%.

TOST's Gross Margin % is ranked worse than
86.95% of 2482 companies
in the Software industry
Industry Median: 45.55 vs TOST: 17.06

Toast had a gross margin of 16.64% for the quarter that ended in Mar. 2022 => No sustainable competitive advantage

The 5-Year average Growth Rate of Gross Margin for Toast was 0.00% per year.


Toast Gross Margin % Historical Data

The historical data trend for Toast's Gross Margin % can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

Toast Annual Data
Trend Dec19 Dec20 Dec21
Gross Margin %
9.32 17.01 18.42

Toast Quarterly Data
Dec19 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22
Gross Margin % Premium Member Only Premium Member Only Premium Member Only 24.47 20.34 17.12 14.76 16.64

Competitive Comparison

For the Software - Infrastructure subindustry, Toast's Gross Margin %, along with its competitors' market caps and Gross Margin % data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.

   

Toast Gross Margin % Distribution

For the Software industry and Technology sector, Toast's Gross Margin % distribution charts can be found below:

* The bar in red indicates where Toast's Gross Margin % falls into.



Toast Gross Margin % Calculation

Gross Margin is the percentage of Gross Profit out of sales or Revenue.

Toast's Gross Margin for the fiscal year that ended in Dec. 2021 is calculated as

Gross Margin % (A: Dec. 2021 )=Gross Profit (A: Dec. 2021 ) / Revenue (A: Dec. 2021 )
=314 / 1705
=(Revenue - Cost of Goods Sold) / Revenue
=(1705 - 1391) / 1705
=18.42 %

Toast's Gross Margin for the quarter that ended in Mar. 2022 is calculated as


Gross Margin % (Q: Mar. 2022 )=Gross Profit (Q: Mar. 2022 ) / Revenue (Q: Mar. 2022 )
=89 / 535
=(Revenue - Cost of Goods Sold) / Revenue
=(535 - 446) / 535
=16.64 %

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

A positive Gross Profit is only the first step for a company to make a net profit. The gross profit needs to be big enough to also cover related labor, equipment, rental, marketing/advertising, research and development and a lot of other costs in selling the products.


Toast  (NYSE:TOST) Gross Margin % Explanation

Warren Buffett believes that firms with excellent long term economics tend to have consistently higher margins.

Durable competitive advantage creates a high Gross Margin % because of the freedom to price in excess of cost. Companies can be categorized by their Gross Margin %

1. Greater than 40% = Durable competitive advantage
2. Less than 40% = Competition eroding margins
3. Less than 20% = no sustainable competitive advantage
Consistency of Gross Margin is key

Toast had a gross margin of 16.64% for the quarter that ended in Mar. 2022 => No sustainable competitive advantage


Be Aware

If a company loses its competitive advantages, usually its gross margin declines well before its sales declines. Watching Gross Margin % and Operating Margin % closely helps avoid value trap situations.


Toast Gross Margin % Related Terms

Thank you for viewing the detailed overview of Toast's Gross Margin % provided by GuruFocus.com. Please click on the following links to see related term pages.


Toast Business Description

Toast logo
Traded in Other Exchanges
Address
401 Park Drive, Suite 801, Boston, MA, USA, 02215
Toast is a U.S.-based restaurant technology company that provides point-of-sale, payment processing, and various software services to 57,000 restaurant locations across the United States. The firm generates sales from software subscription fees, as a percentage take rate from each financial transaction it processes, and from hardware installation and professional services. Unlike competitors, Toast intermediates every payment transaction on its platform, processing some $57 billion in gross platform volume in 2021. The firm's product offerings span point-of-sale systems, inventory and payroll management, delivery integration, e-commerce ordering, and loyalty programs.
Executives
Grimm Jonathan 10 percent owner, officer: Chief Technology Officer TOAST, INC. 401 PARK DRIVE, SUITE 801 BOSTON MA 02215
Hmi Capital Partners, L.p. 10 percent owner C/O HMI CAPITAL, LLC 555 CALIFORNIA STREET, SUITE 4900 SAN FRANCISCO CA 94104
Hmi Capital Management, L.p. 10 percent owner 555 CALIFORNIA STREET SUITE 4900 SAN FRANCISCO CA 94104
Koplow Hilarie A. director C/O NEW RELIC, INC. 188 SPEAR STREET, STE. 1200 SAN FRANCISCO CA 94105
Matlock James Michael officer: Principal Accounting Officer TOAST, INC. 401 PARK DRIVE, SUITE 801 BOSTON MA 02215
Fmr Llc 10 percent owner, other: See Remark 1 245 SUMMER STREET BOSTON MA 02210
Tcv X Member Fund, L.p. other: May be part of a 13(d) group 250 MIDDLEFIELD ROAD MENLO PARK CA 94025
Technology Investment Dining Group, Llc 10 percent owner 18 BANK STREET LEBANON NH 03766
Bell Paul D director C/O DELL INC. ONE DELL WAY ROUND ROCK TX 78682-2244
Bessemer Venture Partners Century Fund Institutional L.p. 10 percent owner 1865 PALMER AVENUE SUITE 104 LARCHMONT NY 10538
Bessemer Venture Partners Century Fund L.p. 10 percent owner 1865 PALMER AVENUE SUITE 104 LARCHMONT NY 10538
Papa Steve 10 percent owner C/O DESKTOP METAL, INC. 63 THIRD AVENUE BURLINGTON MA 01803
Bennett Richard Kent director 1865 PALMER AVENUE SUITE 104 LARCHMONT NY 10538
Comparato Christopher P director, officer: Chief Executive Officer TOAST, INC. 401 PARK DRIVE, SUITE 801 BOSTON MA 02215
Fredette Stephen director, officer: Co-President TOAST, INC. 401 PARK DRIVE, SUITE 801 BOSTON MA 02215

Toast Headlines

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