(TOST) 2023 Q3 法說會逐字稿

Good afternoon. My name is Cole, and I'll be your conference operator today. At this time, I would like to welcome everyone to the Toast earnings conference call. (Operator Instructions)

午安.我叫科爾，今天我將擔任你們的會議接線生。此時，我歡迎大家參加 Toast 財報電話會議。 （操作員說明）

I'll now turn the call over to Michael Senno, Senior Vice President of Finance. You now may begin.

現在我將把電話轉給財務高級副總裁 Michael Senno。現在你可以開始了。

Thanks, Cole. Welcome to Toast's Earnings Conference Call for the Third Quarter ended September 30, 2023. On today's call are CEO, Chris Comparato; COO, Aman Narang; and CFO, Elena Gomez, will open with prepared remarks, which will be followed by our Q&A session.

謝謝，科爾。歡迎參加 Toast 於 2023 年 9 月 30 日結束的第三季財報電話會議。參加今天電話會議的有執行長 Chris Comparato；首席營運官，阿曼納朗；財務長 Elena Gomez 將首先發表準備好的講話，然後進行問答環節。

Before we start, I'd like to draw your attention to the safe harbor statement included in today's press release. During this call, we'll make statements related to our business that may be considered forward-looking within the meaning of the Securities and the Exchange Act. All statements, other than statements of historical facts are forward-looking statements, including those regarding management's expectations of future financial and operational performance and operational expenditures, location growth, future profit and margin outlook, expected growth in business outlook, including our financial guidance for the fourth quarter and full year 2023.

在我們開始之前，我想提請您注意今天新聞稿中包含的安全港聲明。在本次電話會議中，我們將做出與我們的業務相關的聲明，這些聲明可能被視為《證券交易法》含義內的前瞻性聲明。除歷史事實陳述外，所有陳述均為前瞻性陳述，包括有關管理層對未來財務和營運業績以及營運支出、地點增長、未來利潤和利潤率前景、業務前景預期增長的預期的陳述，包括我們對2023 年第四季和全年。

Forward-looking statements reflect our views only as of today, and except as required by law, we undertake no obligation to update or revise these forward-looking statements. Please refer to the cautionary language in today's press release and our SEC filings for a discussion of the risks and uncertainties that could cause actual results to differ materially from our expectations.

前瞻性陳述僅反映我們截至目前為止的觀點，除非法律要求，否則我們不承擔更新或修改這些前瞻性陳述的義務。請參閱今天新聞稿中的警告性語言和我們向 SEC 提交的文件，以了解可能導致實際結果與我們的預期有重大差異的風險和不確定性的討論。

During this call, we will discuss certain non-GAAP financial measures. These non-GAAP measures are not intended to be a substitute for our GAAP results. Please refer to our earnings release and SEC filings for detailed reconciliations of these non-GAAP measures to the most comparable GAAP measures. Unless otherwise stated, all references on this call to cost of revenue, gross profit and gross margin, sales and marketing expense, research and development expense and general and administrative expense are on a non-GAAP basis.

在本次電話會議中，我們將討論某些非公認會計準則財務指標。這些非公認會計準則衡量標準無意取代我們的公認會計準則結果。請參閱我們的收益發布和向 SEC 提交的文件，以了解這些非 GAAP 衡量標準與最具可比性 GAAP 衡量標準的詳細調整表。除非另有說明，本次電話會議中所有提及的收入成本、毛利和毛利率、銷售和行銷費用、研發費用以及一般和管理費用均基於非公認會計原則。

Finally, both the press releases and a replay of this call, including the accompanying investor presentation, will be available on our Investor Relations website at investors.toasttab.com.

最後，本次電話會議的新聞稿和重播，包括隨附的投資者演示文稿，將在我們的投資者關係網站 Investors.toasttab.com 上提供。

And with that, let me turn the call over to Chris.

接下來，讓我把電話轉給克里斯。

Thank you, Michael. Thank you, everyone, for joining us this afternoon. Our focus has been on delivering durable and efficient growth, and our third results reflects execution on that objective. We added over 6,500 net locations in the quarter and ARR grew 40% year-over-year. We continue to balance top line growth with driving efficiencies as we scale the business, and adjusted EBITDA totaled $35 million in the quarter.

謝謝你，麥可。謝謝大家今天下午加入我們。我們的重點是實現持久和高效的成長，我們的第三個結​​果反映了對該目標的執行。本季我們新增了 6,500 多個淨營業點，ARR 年增 40%。隨著業務規模的擴大，我們繼續平衡營收成長與提高效率，本季調整後的 EBITDA 總計 3,500 萬美元。

The execution against our focused strategy to drive location growth, serve all segments of the restaurant industry and bold product innovation to better serve our customers and open up new segments of the market is both driving strong results and has us well positioned to sustain this momentum going forward.

我們的重點策略是推動地點成長、服務餐飲業的各個領域，並進行大膽的產品創新，以更好地服務我們的客戶並開拓新的市場領域，這些策略的執行既推動了強勁的業績，也使我們能夠保持這一勢頭。向前。

As we announced in September, Aman will take over as the CEO at the start of 2024. Looking back over my 9 years as CEO, I am incredibly proud of the accomplishments of the Toast team. Together, we scale to serve nearly 100,000 restaurant locations with over 1.2 billion in ARR. We've built a company culture with strong values and an employee base that embraces our customer-centric mission to be the trusted restaurant technology partner. At the same time, we've built a scalable, durable business that's generating sustainable positive adjusted EBITDA and free cash flow.

正如我們在 9 月宣布的那樣，Aman 將於 2024 年初接任執行長。回顧我擔任執行長的 9 年，我為 Toast 團隊的成就感到無比自豪。我們共同為近 10 萬家餐廳提供服務，年收入超過 12 億。我們建立了具有強大價值觀的公司文化和員工基礎，秉持以客戶為中心的使命，成為值得信賴的餐廳技術合作夥伴。同時，我們建立了可擴展、持久的業務，產生可持續的正調整 EBITDA 和自由現金流。

Our innovation mindset and our products have also expanded significantly over that time period as we deliver on our mission. We've broadened the types of restaurants that we serve and have made inroads across the entire U.S. restaurant TAM. We have also evolved into a multiproduct platform company with solutions to help restaurants drive growth, build deeper connections and experiences with their guests and improve operations and manage their costs.

在我們履行使命的過程中，我們的創新思維和我們的產品也在這段時間內顯著擴展。我們擴大了服務的餐廳類型，並進軍整個美國 TAM 餐廳。我們也發展成為一家多產品平台公司，提供解決方案幫助餐廳推動成長、與客人建立更深層的聯繫和體驗、改善營運和管理成本。

Toast has been on this journey for over a decade, and we proudly serve an industry that has navigated many ups and downs. There's no better example than over the last few years. Restaurant operators responded to unprecedented changes, quickly expanding their service models to meet evolving consumer demands. Through it all, restaurants remain a central part of consumers' daily lives.

Toast 已經踏上這條旅程十多年了，我們很自豪能夠為這個經歷過許多風風雨雨的行業提供服務。沒有比過去幾年更好的例子了。餐廳營運商應對前所未有的變化，迅速擴展服務模式，以滿足不斷變化的消費者需求。自始至終，餐廳仍然是消費者日常生活的核心部分。

More recently, we've seen consumer spend moderate, and I'm confident restaurants will navigate the uncertain macro environment with the same resiliency and tenacity they always do, and this battle-tested industry will continue to thrive well into the future. Toast is side-by-side with our customers every step of the way and is often one step ahead, helping restaurants adapt and thrive no matter the circumstance, and we're just getting started.

最近，我們看到消費者支出適度，我相信餐廳將以一如既往的彈性和堅韌應對不確定的宏觀環境，這個久經考驗的行業將在未來繼續蓬勃發展。 Toast 在每一步中都與我們的客戶並肩作戰，並且常常領先一步，幫助餐廳適應並蓬勃發展，無論情況如何，而我們才剛剛開始。

The SMB TAM remains a large opportunity for us. Enterprise restaurant groups are in the early days of adopting cloud technologies and a big international opportunity lies ahead. We are better positioned than ever before to expand and continue to build adjacent growth opportunities as we capitalize on the generational opportunity to be the technology platform for restaurants and transform the industry.

SMB TAM 對我們來說仍然是一個巨大的機會。企業餐飲集團正處於採用雲端技術的早期階段，巨大的國際機會就在眼前。我們比以往任何時候都更有能力擴張並繼續創造相鄰的成長機會，因為我們利用這一代機會成為餐廳的技術平台並改變產業。

I've known Aman for 17 years, having worked with him before I joined Toast. First and foremost, as a co-founder of Toast, he brings a strong founder's mentality to the CEO seat, where he will continue to raise the bar on execution and innovation.

我認識 Aman 已經 17 年了，在加入 Toast 之前就曾與他共事。首先也是最重要的是，作為 Toast 的聯合創始人，他將​​強大的創始人心態帶到了執行長的位置上，他將繼續提高執行和創新的標準。

He intimately knows our customer base and has shaped much of the company through his many roles across the organization from overseeing product to sales and customer success. So I'm confident that as Aman steps into the CEO role, he'll lead Toast to new successes, and he is surrounded by the most talented leadership team that I've had the opportunity to work with across my career. To wrap up my last quarterly earnings call, thank you to our Toasters and to our customers. We've accomplished a lot as a team. The enthusiasm you bring to our mission sustains our momentum, and I'm excited for what lies ahead.

他非常了解我們的客戶群，並透過在整個組織中擔任的許多角色（從監督產品到銷售和客戶成功）塑造了公司的大部分業務。因此，我相信，當 Aman 擔任執行長時，他將帶領 Toast 取得新的成功，而且他周圍都是我在職業生涯中曾有機會與之共事的最有才華的領導團隊。在結束我的上一季財報電話會議時，感謝我們的烤麵包機和我們的客戶。作為一個團隊，我們取得了許多成就。你們對我們使命的熱情維持了我們的動力，我對未來感到興奮。

Now I'll turn the call over to Aman.

現在我將把電話轉給阿曼。

Thank you, Chris. Toast wouldn't be what it is today without your leadership and passion for the business, our customers and, of course, our team. I think I speak for all Toasters in saying, you'll be missed. And your friendship and support over the past 17 years that we've known each other has meant a lot to me personally.

謝謝你，克里斯。如果沒有您的領導力以及對業務、我們的客戶，當然還有我們的團隊的熱情，Toast 就不會成為今天的樣子。我想我代表所有烤麵包機說，我們會想念你們的。在我們相識的過去 17 年裡，你們的友誼和支持對我個人來說意義重大。

As Chris mentioned, we are excited about the opportunity ahead of us to grow the business and continue to be a great partner to the restaurant community. With just over 10% for the U.S. market on Toast, we have significant runway ahead of us. Our passion for this industry, a strong focus on innovation to help restaurants drive and a world-class go-to-market and customer success team gives us confidence in our ability to drive sustained arrow growth while planting the seeds for future growth initiatives.

正如克里斯所提到的，我們對眼前的機會感到興奮，可以發展業務並繼續成為餐廳社區的優秀合作夥伴。 Toast 在美國市場的佔有率略高於 10%，我們還有很長的路要走。我們對這個行業的熱情、對幫助餐廳推動創新的強烈關注以及世界一流的上市和客戶成功團隊使我們對推動持續箭頭增長的能力充滿信心，同時為未來的增長計劃播下種子。

We're incredibly happy with our performance in Q3. And the results represent strong momentum across our business. ARR was up 40% year-over-year to $1.2 billion, driven by strong execution across location acquisition and ARPU expansion. We are confident in our ability to continue to grow ARR across both these dimensions over the long term. Revenue increased 37% year-over-year, and adjusted EBITDA increased to a record $35 million in Q3. Toast had its sixth consecutive quarter exceeding the Rule of 40, measuring fintech and subscription gross profit growth, our recurring revenue streams plus adjusted EBITDA margin.

我們對第三季的表現非常滿意。這些結果代表了我們整個業務的強勁勢頭。得益於地點收購和 ARPU 擴張方面的強勁執行力，ARR 年增 40% 至 12 億美元。我們對長期在這兩個方面繼續提高 ARR 的能力充滿信心。第三季營收年增 37%，調整後 EBITDA 增至創紀錄的 3,500 萬美元。 Toast 連續第六個季度超過 40 法則，衡量金融科技和訂閱毛利成長、我們的經常性收入流以及調整後的 EBITDA 利潤率。

This consistent execution is a testament to our team who have prioritized both revenue growth and operating leverage as the business has scaled. We added over 6,500 net locations in the quarter, approximately 20% more than Q3 last year.

這種一致的執行力證明了我們的團隊隨著業務規模的擴大，優先考慮收入成長和營運槓桿。本季我們新增了 6,500 多個淨營業點，比去年第三季增加了約 20%。

Our local go-to-market approach continues to help drive strong momentum in our SMB business as we increased the number of viable markets with high customer density and market tender. While the SMB business is still the primary driver of location growth, we're making progress across the broader market opportunity as well. Let me share a few customer stories from the quarter that speak to this. The Mariano Restaurant Group switched its 4 full-serve restaurants in Massachusetts and New Hampshire to Toast and 3 of them are already live in Q3.

隨著我們透過高客戶密度和市場招標增加了可行市場的數量，我們的本地市場進入方法繼續幫助推動我們的中小企業業務的強勁勢頭。雖然中小企業業務仍然是地點成長的主要驅動力，但我們也在更廣泛的市場機會方面取得了進展。讓我分享本季的一些與此相關的客戶故事。 Mariano 餐廳集團將其位於麻薩諸塞州和新罕布夏州的 4 家全服務餐廳改為 Toast，其中 3 家已在第三季開業。

They purchased 9 products to help streamline their business across both front of house and back of house and noted the simplicity and ease of use of an integrated all-in-one solution. In addition to our core offerings, they're also leveraging our newer platform capabilities, including Toast Tables and catering & events. With Toast Tables, they can more easily estimate guest wait times, give visibility into how far along the table is in its service and help with seating guests evenly across service areas to help in the workloads keep them balanced.

他們購買了 9 種產品來幫助簡化前台和後台業務，並注意到整合一體化解決方案的簡單性和易用性。除了我們的核心產品之外，他們還利用我們更新的平台功能，包括 Toast Tables 以及餐飲和活動。透過 Toast Tables，他們可以更輕鬆地估計客人的等待時間，了解桌子的服務距離，並幫助客人在服務區域均勻就座，以幫助保持工作量平衡。

In addition, the integration between Toast Tables and our employee scheduling product helps managers better staff throughout the week. Using our Catering & Events product, they've also been able to streamline a manual paper dependent process with a digital-first approach. We're excited to work with Mariano Restaurant Group and support their growth plans over the coming years. In mid-market, we expanded our relationship with Craveworthy Brands and are excited to partner with them as they grow.

此外，Toast Tables 與我們的員工調度產品之間的整合可以幫助經理在一周內更好地安排員工。使用我們的餐飲和活動產品，他們還能夠透過數位優先的方法簡化依賴手動紙張的流程。我們很高興與馬裡亞諾餐廳集團合作並支持他們未來幾年的發展計劃。在中端市場，我們擴大了與 Craveworthy Brands 的關係，並很高興在他們的成長過程中與他們合作。

We signed 50 locations across their multi-concept fast casual QSR portfolio for a total of 93 locations on Toast. And in enterprise, we're thrilled to extend our relationship with Nothing Bundt Cakes. They became a customer in 2019 and currently have over 500 locations live on Toast. We've been working with them to improve bakery productivity, drive higher digital conversion and streamline processes for their corporate team. To support their expansion plans and franchisee count, we have signed an additional 300 locations across Nothing Bundt Cakes and expanded the set of products available to their franchisee community, including employee scheduling, payroll and catering. This expansion creates an opportunity to double the Nothing Bundt Cakes associate ARR over time, and we're excited to partner and support their growth plans.

我們在其多概念快速休閒 QSR 產品組合中簽約了 50 家門市，使 Toast 上的門市總數達到 93 家。在企業領域，我們很高興能夠擴展與 Nothing Bundt Cakes 的合作關係。他們於 2019 年成為客戶，目前 Toast 上有 500 多個地點。我們一直與他們合作，提高烘焙生產力，推動更高的數位轉換並簡化其企業團隊的流程。為了支持他們的擴張計劃和加盟商數量，我們在 Nothing Bundt Cakes 上額外簽約了 300 家商店，並擴大了為其加盟商社區提供的產品系列，包括員工調度、工資和餐飲。隨著時間的推移，此次擴張創造了使 Nothing Bundt Cakes 聯營公司 ARR 翻倍的機會，我們很高興能與他們合作並支持他們的發展計劃。

Shifting gears to products. We're focused on building products that can both help our customers thrive and run a great business. Our vertical focus on restaurant continues to be an advantage as we open up deeper parts of the TAM and expand ARPU by building differentiated products for the industry. Product innovation has always been foundational in Toast DNA, and you should expect us to maintain that focus moving forward. Last week, we announced Toast Now, an app for restaurant operators that provides real-time insight into performance data, allows operators to manage things like kitchen volume, adjust menus and communicate with staff on the go on their mobile device.

轉向產品。我們專注於打造既能幫助我們的客戶蓬勃發展又能經營出色業務的產品。我們對餐廳的垂直關注仍然是一個優勢，因為我們開拓了 TAM 的更深層次，並透過為產業打造差異化產品來擴大 ARPU。產品創新一直是 Toast DNA 的基礎，您應該期待我們繼續保持這一重點。上週，我們推出了 Toast Now，這是一款面向餐廳經營者的應用程序，可即時洞察績效數據，使經營者能夠管理廚房音量、調整菜單等內容，並在行動裝置上與員工進行交流。

This is something our customers have been asking for, and allows us to build a deeper connections from operators. We are pleased with the early adoption levels with approximately 20% of locations already on Toast Now, a week after its launch. In addition, we recently announced Toast for Cafes and Bakeries, similar to Toast for Hotel Restaurants and Toast for Quick Service, we're building solutions for different restaurant types that better serve deeper parts of the TAM. Toast for Cafe and Bakeries brings together product capabilities geared to help coffee shops and bakeries grow revenue, speed up service and create more repeat guests.

這是我們的客戶一直以來的要求，也讓我們能夠與營運商建立更深層的聯繫。我們對早期的採用水準感到滿意，在 Toast Now 推出一週後，大約 20% 的地點已經使用了 Toast Now。此外，我們最近推出了咖啡館和麵包店的 Toast，類似於酒店餐廳的 Toast 和快速服務的 Toast，我們正在為不同的餐廳類型建立解決方案，以更好地服務 TAM 的更深層部分。 Toast for Cafe and Bakeries 匯集了產品功能，旨在幫助咖啡店和麵包店增加收入、加快服務並吸引更多回頭客。

Cafes and bakeries serve a variety of customer needs from a regular morning coffee to lunch catering or an on-the-go snack. It is a segment of the market that we're excited about and represents a meaningful growth opportunity for Toast. As part of the Cafe and Bakery launch, we also announced restaurant retail, which provides unified restaurant and retail POS systems to manage retail SKUs. Things like wine selections or packaged coffee and more directly within Toast providing a one-stop shop for customers to manage food service and retail together.

咖啡館和麵包店滿足各種客戶需求，從常規的早晨咖啡到午餐餐飲或外帶小吃。這是我們感到興奮的一個市場領域，並且對 Toast 來說是一個有意義的成長機會。作為咖啡館和麵包店推出的一部分，我們還推出了餐廳零售，它提供統一的餐廳和零售 POS 系統來管理零售 SKU。諸如葡萄酒選擇或包裝咖啡之類的東西，以及更直接在 Toast 中提供的一站式服務，為客戶提供了一起管理餐飲服務和零售的服務。

We've seen restaurants embrace more service models, especially during and post pandemic. And this is yet another example of our continuous focus on meeting the evolving needs of our customers. This is a good example for how our product innovation can help serve deeper parts of the TAM, drive incremental GPV through Toast and support ARPU growth. One customer I'd like to highlight is 320 Market Café, a family-owned gourmet market with 2 locations in Pennsylvania that includes the pizzeria, a cafe, a retail area offering prepared foods, craft beer and wine as well as the catering business.

我們看到餐廳採用了更多的服務模式，尤其是在大流行期間和之後。這是我們持續專注於滿足客戶不斷變化的需求的另一個例子。這是一個很好的例子，說明我們的產品創新如何幫助服務 TAM 的更深層部分，透過 Toast 推動 GPV 增量並支持 ARPU 成長。我想強調的一位客戶是320 Market Café，這是一家家族經營的美食市場，在賓州設有2 家分店，其中包括比薩店、咖啡館、提供預製食品、精釀啤酒和葡萄酒的零售區以及餐飲業務。

Before they joined Toast, 320 took catering orders via phone or e-mail and wrote orders on paper, which often got lost in the kitchen. And on the retail side, the process of adding a new retail SKU took over 20 minutes. This slowed down their ability to serve guests and generate revenue. Now with Toast, 320 Market Café is, of course, a growing business with quicker inventory management, faster checkouts and a way to take catering orders digitally, all in a single integrated platform. They can now tag a new product and have it on the retail floor in minutes, track sales data in real time and take down their corporate board of paper catering orders in a digital system -- in place of a digital system they can manage them from anywhere.

在加入Toast之前，320透過電話或電子郵件接受餐飲訂單，並在紙上寫下訂單，這些訂單經常在廚房裡遺失。而在零售方面，增加新零售SKU的過程花了20多分鐘。這降低了他們服務客人和創造收入的能力。現在，有了 Toast，320 Market Café 無疑成為一家不斷發展的企業，擁有更快的庫存管理、更快的結帳速度以及以數位方式接受餐飲訂單的方式，所有這些都在一個整合平台上進行。他們現在可以為新產品貼上標籤，並在幾分鐘內將其投放到零售店，即時追蹤銷售數據，並在數位系統中記下公司的紙質餐飲訂單——而不是他們可以管理的數位系統任何地方。

With catering, retail, online ordering, gift cards and more, 320 Market Café has up-leveled their business with Toast and saved their employees about 8 hours per week of manual work, equivalent to a whole shift. As we continue to broaden our products for our go-to-market team to serve a variety of customer types and pinpoints, our upsell team becomes increasingly important to drive growth for the adoption of our platform across our customer base. As we approach 100,000 locations and beyond, our upsell team's TAM gets bigger and we continue to see this as a big opportunity for growth in our business over time.

憑藉餐飲、零售、線上訂購、禮品卡等業務，320 Market Café 借助 Toast 提升了業務水平，並為員工每週節省了約 8 小時的體力勞動，相當於一個輪班時間。隨著我們不斷擴大我們的上市團隊的產品範圍，以服務各種客戶類型和精確點，我們的追加銷售團隊對於推動我們平台在客戶群中採用的成長變得越來越重要。隨著我們的銷售點接近 100,000 個甚至更多，我們的追加銷售團隊的 TAM 變得越來越大，我們仍然認為這是我們業務隨著時間的推移增長的巨大機會。

To wrap up, as Chris mentioned, we're excited about the opportunity in front of us. We are focused on being a strong partner to our restaurant community, and we are well positioned to drive sustained arrow growth in the future while building an efficient and durable business that can generate long-term value for customers and shareholders. As I think about the opportunity ahead of us, I'm energized and motivated by the momentum we have. It goes without saying that none of this will be possible without the tireless efforts of our employees. A special thank you to all Toasters. I'm excited to lead this group of talented individuals as we transform the restaurant industry.

最後，正如克里斯所提到的，我們對擺在我們面前的機會感到興奮。我們致力於成為餐廳社區的強大合作夥伴，我們處於有利位置，可以推動未來的持續箭頭成長，同時建立高效、持久的業務，為客戶和股東創造長期價值。當我想到我們面前的機會時，我們所擁有的動力讓我充滿活力和動力。不言而喻，這一切離不開我們員工的不懈努力。特別感謝所有烤麵包機。我很高興能夠領導這群才華洋溢的人來改變餐飲業。

And with that, thank you, and I'll pass it off to Elena.

謝謝你，我會把它轉達給埃琳娜。

Thanks, Aman, and thank you, everyone, for joining. I also want to thank our incredible employees for another quarter of great work. Our team continues to execute at a high level, driving 40% growth at over $1 billion in ARR and delivering significant margin expansion. With a differentiated business model, scalable go-to-market engine and innovative all-in-one platform, we're well positioned to continue driving efficient growth at scale going forward.

謝謝阿曼，也謝謝大家的加入。我還要感謝我們出色的員工在另一個季度所做的出色工作。我們的團隊繼續保持高水準執行，推動 ARR 成長 40%，超過 10 億美元，並實現利潤率大幅成長。憑藉差異化的業務模式、可擴展的上市引擎和創新的一體化平台，我們處於有利位置，可以繼續推動未來的大規模高效成長。

The 40% increase in ARR was on the back of strong location growth and continued ARPU expansion translating to 37% year-over-year revenue growth. Our recurring gross profit streams, fintech and subscription totaled $280 million, up 39% year-over-year. Adjusted EBITDA was $35 million, representing a margin of 13% on our recurring gross profit streams with over 22 percentage points of margin improvement year-over-year. Growth in our recurring gross profit streams and adjusted EBITDA margin are the bases for how we calculate Rule of 40 and this marks the sixth consecutive quarter we exceeded the Rule of 40.

ARR 成長 40% 得益於強勁的地理位置成長和 ARPU 的持續擴張，這意味著營收年增 37%。我們的經常性毛利流動、金融科技和訂閱總計 2.8 億美元，年增 39%。調整後 EBITDA 為 3,500 萬美元，我們的經常性毛利流動為 13%，利潤率年增了 22 個百分點以上。我們的經常性毛利流動和調整後的 EBITDA 利潤率的成長是我們計算 40 規則的基礎，這標誌著我們連續第六個季度超過 40 法則。

We sustained our go-to-market momentum in Q3, adding over 6,500 net locations. That was primarily driven by the flywheel effect from our localized go-to-market motion. As rep tenure and local market share increase, so has rep productivity contributing to a solid year-over-year increase in SMB restaurant location adds. Our goal has always been to serve the entire restaurant TAM over time. We are increasingly making progress across segments supplementing our momentum in SMB with incremental growth both up and down market and internationally, resulting in sustained location growth of over 30%, even as we approach 100,000 locations. Our primary focus remains on the core SMB segment.

我們在第三季保持了進入市場的勢頭，淨增加了 6,500 多個網點。這主要是由我們在地化上市行動的飛輪效應所推動的。隨著代表任期和當地市場份額的增加，代表生產力也隨之提高，推動中小型餐廳位置逐年穩定成長。我們的目標始終是隨著時間的推移為整個 TAM 餐廳提供服務。我們在各細分市場不斷取得進展，透過上下市場和國際的增量成長補充了我們在中小型企業的發展勢頭，即使我們的營業地點已接近100,000 個，我們的營業地點仍保持超過30% 的持續增長。我們的主要關注點仍然是核心中小企業領域。

We broadened and deepened penetration across the TAM, including smaller SMB customers, enterprise customers and expanding internationally, our customer mix will evolve and have different SaaS and GPV dynamics. Our focus is to maximize ARR growth, which is our North Star metric while maintaining the same healthy unit economics overall. We plan to manage the portfolio to the same payback period in the mid-teens number of months, ensuring that growth is efficient as we expand and drive incremental profit.

我們擴大並加深了對 TAM 的滲透，包括小型中小企業客戶、企業客戶和國際擴張，我們的客戶組合將不斷發展，並具有不同的 SaaS 和 GPV 動態。我們的重點是最大限度地提高 ARR 成長，這是我們的北極星指標，同時保持整體健康的單位經濟效益。我們計劃在十多個月內將投資組合管理到相同的投資回收期，確保在我們擴張和推動增量利潤的同時實現高效成長。

In the third quarter, SaaS ARR grew 47% year-over-year, driven by strong location growth and a 9% increase in SaaS ARPU. We're capitalizing on the location acquisition momentum we have while continuing to balance ARPU growth. We plan to exit Q4 with SaaS ARPU growth in the mid- to high single digits, reflecting lower ARPU for new go-live cohort as we continue to optimize our upfront sales to balance sustained location growth velocity as well as some impact from mix shift.

第三季度，在強勁的地理位置成長和 SaaS ARPU 成長 9% 的推動下，SaaS ARR 年比成長 47%。我們正在利用我們擁有的位置來獲取勢頭，同時繼續平衡 ARPU 成長。我們計劃在第四季度結束時，SaaS ARPU 成長為中高個位數，這反映出新上線群體的 ARPU 較低，因為我們繼續優化前期銷售，以平衡持續的位置成長速度以及組合轉變的一些影響。

Our long-term growth algorithm remains the same. We have a long runway to increase ARR through both locations and ARPU with just over 10% of U.S. restaurant locations on the platform, a proven differentiated SMB go-to-market motion and growing traction across the full breadth of restaurant segments as well as green shoots internationally, we're well positioned stained healthy growth location for years to come.

我們的長期成長演算法保持不變。我們在透過門市和ARPU 來提高ARR 方面還有很長的路要走，平台上只有超過10% 的美國餐廳門市，這是經過驗證的差異化中小型企業入市行動，並且在整個餐廳細分市場以及綠色餐飲領域的吸引力不斷增長在國際上進行拍攝，我們處於有利位置，可以在未來幾年保持健康的成長。

Similarly, as we scale customer count, we have conviction in our ability to drive healthy SaaS ARPU growth over the long term through pricing and packaging, scaling and refining our upsell motion and delivering ongoing product innovation to enhance the customer value proposition. Moving to fintech Solutions. On a year-over-year basis, third quarter revenue and gross profit both grew 36% to $856 million and $182 million, respectively. GPV increased 4% to $33.7 billion, and average annualized GPV per processing location was down slightly year-over-year.

同樣，隨著我們擴大客戶數量，我們堅信我們有能力透過定價和包裝、擴大和完善我們的追加銷售活動以及提供持續的產品創新來增強客戶價值主張，從而推動 SaaS ARPU 長期健康成長。轉向金融科技解決方案。與去年同期相比，第三季營收和毛利均成長 36%，分別達到 8.56 億美元和 1.82 億美元。 GPV 成長 4%，達到 337 億美元，每個加工地點的平均年化 GPV 年比略有下降。

Similar to Q2, the year-over-year change in GPV per processing location was impacted as we lap the inflation tailwind and from a slight mix shift as we extended to more segments of the TAM. In addition, in the back half of the third quarter, we saw a modest slowdown in same-store transaction volume, which resulted in a decline in GPV per processing location in the quarter. Trends have remained stable since then. Given the broader macro environment remains mixed, we're planning for GPV trends to remain at current levels in the near term and for GPV per processing locations decline year-over-year in Q4.

與第二季類似，每個加工地點的 GPV 同比變化受到了影響，因為我們順應了通貨膨脹，隨著我們擴展到 TAM 的更多細分市場，混合發生了輕微的變化。此外，第三季後半段，同店交易量略有放緩，導致該季度每個加工地點的 GPV 下降。此後趨勢一直保持穩定。鑑於更廣泛的宏觀環境仍然好壞參半，我們計劃短期內 GPV 趨勢保持在當前水平，並且第四季度每個加工地點的 GPV 同比下降。

On nonpayment, fintech solutions led by Toast Capital, contributed $34 million in gross profit in the quarter as demand for the offering remains healthy and default rates remain steady. We continue to take a balanced approach to growing Toast capital and our unique position with real-time access to POS data allows us to monitor the health of restaurants and prudently balanced risk while helping our customers grow with fast, flexible access to capital.

在未付款方面，由 Toast Capital 領導的金融科技解決方案在本季度貢獻了 3,400 萬美元的毛利，因為對該產品的需求保持健康且違約率保持穩定。我們繼續採取平衡的方法來增加 Toast 資本，我們具有即時存取 POS 數據的獨特地位，使我們能夠監控餐廳的健康狀況並審慎平衡風險，同時幫助我們的客戶透過快速、靈活的資本獲取來實現成長。

Net take rate was 54 basis points. Core net take rate was 44 basis points with other fintech products contributing 10 basis points. This quarter included a onetime cost accrual true-up while the prior year benefited from a credit. Absent those onetime impacts, core take rate was approximately flat year-over-year.

淨利率為54個基點。核心淨利率為 44 個基點，其他金融科技產品貢獻 10 個基點。本季包括一次性成本應計調整，而前一年則受惠於信貸。如果沒有這些一次性影響，核心使用率比去年同期大致相當。

In Q4, we anticipate core and total net take rate to be in a similar range on both a quarter-over-quarter and year-over-year basis. Turning to customer acquisition costs. Hardware revenue increased year-over-year due to both location adds and existing customers adding more hardware. Hardware margins improved year-over-year, primarily due to lower shipping costs.

在第四季度，我們預期核心淨吸收率和總淨吸收率季比和年比都將處於相似的範圍內。轉向客戶獲取成本。由於地點增加和現有客戶添加更多硬件，硬體收入同比增長。硬體利潤率較去年同期有所提高，主要是由於運輸成本下降。

On the sales and marketing side, expenses grew 17% year-over-year. We're making targeted investments in our go-to-market team and continuing to grow our upsell team while staying focused on maintaining healthy unit economics and driving operating leverage. We manage our customer acquisition costs using a dollar-based payback period, which takes into account the incremental recurring gross profit across both new business and upsell. Payback periods remain within our targeted level of mid-teen months for the portfolio.

在銷售和行銷方面，費用年增 17%。我們正在對我們的上市團隊進行有針對性的投資，並繼續發展我們的追加銷售團隊，同時繼續專注於保持健康的單位經濟效益和提高營運槓桿。我們使用基於美元的投資回收期來管理客戶獲取成本，其中考慮了新業務和追加銷售的增量經常性毛利。投資回收期仍維持在我們的投資組合十個月中期的目標水準內。

Shifting to R&D. Our Toast for Cafes and Bakeries launch, including the restaurant retail offering is another example of leveraging product investments to drive deeper location penetration by super serving the unique needs of our different customers. It also highlights how our product innovation locks more revenue streams for customers and drives incremental transaction volume to Toast -- through Toast. G&A grew 12% year-over-year in the third quarter. Excluding $19 million of bad debt and credit-related expenses in the quarter, primarily related to reserves Toast capital, G&A was flat year-over-year. We've seen meaningful leverage in G&A as a result of our focus on efficiency and disciplined headcount management.

轉向研發。我們推出的咖啡館和麵包店吐司（包括餐廳零售產品）是利用產品投資透過超級滿足不同客戶的獨特需求來推動更深層次滲透的另一個例子。它還強調了我們的產品創新如何為客戶鎖定更多收入來源，並透過 Toast 推動 Toast 的交易量增量。第三季 G&A 年成長 12%。排除本季 1,900 萬美元的壞帳和信貸相關費用（主要與準備金 Toast 資本相關），一般行政費用較去年同期持平。由於我們注重效率和嚴格的員工管理，我們在一般管理費用方面發揮了重要作用。

Excluding bad debt and credit-related expenses, G&A as a percentage of our recurring gross profit streams was 16% in the quarter, a 600 basis point improvement year-over-year, and we expect to continue driving operating leverage on our overhead cost going forward. In total, adjusted EBITDA was $35 million in Q3 and margin as a percentage of our recurring gross profit streams increased to 13%, marking the seventh consecutive quarter of margin expansion. That's a result of our healthy top line growth and diligence in efficiently scaling the business.

不包括壞帳和信貸相關費用，本季的一般管理費用占我們經常性毛利流的百分比為 16%，與去年同期相比提高 600 個基點，我們預計將繼續提高管理成本的營運槓桿。總的來說，第三季調整後的 EBITDA 為 3,500 萬美元，利潤率占我們經常性毛利流動的百分比增加到 13%，標誌著利潤率連續第七個季度擴張。這是我們健康的營收成長和努力有效擴展業務的結果。

Overall, we expect to continue building operating leverage as we march towards the long-term target margins we previously laid out. Free cash flow was $37 million in Q3, roughly in line with our adjusted EBITDA. As a reminder, working capital will fluctuate based on GPV trends and timing of payments. But over time, free cash flow should largely follow a similar trajectory as adjusted EBITDA trends.

總體而言，隨著我們向先前設定的長期目標利潤率邁進，我們預計將繼續建立營運槓桿。第三季自由現金流為 3,700 萬美元，大致與我們調整後的 EBITDA 一致。請注意，營運資金將根據 GPV 趨勢和付款時間而波動。但隨著時間的推移，自由現金流應該在很大程度上遵循與調整後的 EBITDA 趨勢類似的軌跡。

Now let me turn to guidance. For the fourth quarter, we expect revenue to be in the range of $1 billion to $1.03 billion, representing 32% year-over-year growth at the midpoint. Adjusted EBITDA is expected to be in the range of $5 million to $15 million.

現在讓我談談指引。對於第四季度，我們預計營收將在 10 億美元至 10.3 億美元之間，中間值年增 32%。調整後的 EBITDA 預計在 500 萬至 1500 萬美元之間。

In addition to the seasonally lower GPV per location in Q4, the sequential decline in adjusted EBITDA compared to the third quarter also reflects our expectation for slower year-over-year GPV growth and investments we're making to strengthen our position heading into 2024. For the full year, we continue to expect revenue to grow 41% at the midpoint of our guidance and now expect adjusted EBITDA to be in the range of $38 million to $48 million, representing an approximately $160 million improvement in adjusted EBITDA versus last year at the midpoint.

除了第四季度每個地點的GPV 季節性下降之外，調整後EBITDA 與第三季度相比的連續下降也反映了我們對GPV 同比增長放緩的預期，以及我們為加強2024 年地位而進行的投資。對於全年，我們繼續預計收入將在指導中位數增長41%，目前預計調整後EBITDA 將在3800 萬美元至4800 萬美元之間，這意味著調整後EBITDA 與去年相比增加了約1.6億美元。中點。

To wrap up, we are extremely proud of the work that the Toast team has accomplished thus far in 2023. We're scaling the business in a durable manner as we capitalize on the opportunity ahead of us to build a generational business that delivers significant value to our customers and shareholders. And we are well positioned to continue delivering long-term growth while driving operating leverage throughout the business and executing on this long-term opportunity that remains ahead of us.

總而言之，我們對 Toast 團隊在 2023 年迄今所完成的工作感到非常自豪。我們正在以持久的方式擴展業務，利用我們面前的機會來建立一個能夠提供巨大價值的代際業務致我們的客戶和股東。我們處於有利地位，可以繼續實現長期成長，同時推動整個業務的營運槓桿，並抓住我們面前的這一長期機會。

Now I'll turn the call over to the operator to begin Q&A.

現在我將把電話轉給接線員開始問答。

(Operator Instructions) Our first question is from Tim Chiodo with UBS.

（操作員說明）我們的第一個問題來自 UBS 的 Tim Chiodo。

I want to touch on your thoughts on your ability or potential to take pricing within the core subscription portion of the business. So with a few competitors that have taken pricing -- have taken pricing in different ways over the past year so, Square, Clover, Shopify and others, I was hoping you could give us an update on where you think you stand in terms of that potential.

我想談談您對您在業務的核心訂閱部分中定價的能力或潛力的看法。因此，一些競爭對手在過去的一年中以不同的方式進行了定價，例如 Square、Clover、Shopify 等，我希望您能給我們提供最新信息，說明您認為自己在這方面的立場潛在的。

Thanks for the question, Tim. I'll start by saying customers, as we said in previous calls, our customers understand that product innovation requires investment and that prices will increase over time. What we've seen is our new customers that are coming on the Toast are coming out at higher pricing. And we've also looked at the distribution curve across our customer base in terms of what they're paying across both SaaS and payments and see opportunity there.

謝謝你的提問，提姆。我首先要對客戶說，正如我們在先前的電話中所說，我們的客戶明白產品創新需要投資，而且價格會隨著時間的推移而上漲。我們看到，Toast 上的新客戶的價格更高。我們還根據客戶群在 SaaS 和支付方面的支付情況來研究分佈曲線，並看到其中的機會。

And so we're confident that we can drive and increase pricing over time. We also see opportunity in terms of how we package our products across both software and fintech and see that as an important lever as well to drive ARPU and price. We're also aware that we're -- if you look at the opportunity in front of us to gain market share across both locations and product cash rates, we want to make sure that we're offering transparent value-based pricing to our customers. So I think in the long term, we're confident in our ability to increase prices, and we're working through it.

因此，我們有信心隨著時間的推移，我們可以推動並提高定價。我們也看到瞭如何在軟體和金融科技領域打包產品的機會，並將其視為推動 ARPU 和價格的重要槓桿。我們還意識到，如果您看到我們面前的機會，以在不同地點和產品現金利率上獲得市場份額，我們希望確保為我們的客戶提供透明的基於價值的定價。顧客。所以我認為從長遠來看，我們對提高價格的能力充滿信心，我們正在努力解決這個問題。

Great. And the brief follow-up is just more of a numbers question around fintech take rate. So I believe that the gross take rate ex capital would have been up slightly, maybe 1 basis point year-over-year. And you mentioned that some of the accruals and what not, that if we would normalize it, the net take rate was roughly flat on a year-over-year basis. Could you just talk about looking forward, the potential to see a little bit more of leverage on the fintech COGS line, maybe whether it be with payment processors or some of the other nonpayments-related items in there, whether it be support or data center or other costs that are in the fintech COGS line?

偉大的。簡短的後續行動更多的是關於金融科技採用率的數字問題。因此，我認為除資本外的毛利率會略有上升，可能比去年同期上升 1 個基點。您提到了一些應計費用以及其他費用，如果我們將其正常化，淨佔用率比去年同期大致持平。您能否談談展望未來，在金融科技 COGS 線上看到更多槓桿作用的潛力，也許是支付處理器還是其他一些與支付相關的項目，無論是支援還是資料中心或金融科技COGS 類別中的其他成本？

Yes. Thanks, Tim. It's a fair question. Look, I think over the long term, we have an opportunity to gradually increase our core take rate either through investing in our payments infrastructure and just driving operational excellence as we're trying to drive down cost per transaction. And that's both working with our partners and negotiating. And then there's -- obviously, we can impact the price, of course, that's also at our disposal. And then just leveraging our scale as we get bigger, I think we'll have -- we'll be in a position to negotiate even further. So I think there's an opportunity both on the pricing side of things, but also as we optimize our cost start over time.

是的。謝謝，蒂姆。這是一個公平的問題。看，我認為從長遠來看，我們有機會透過投資我們的支付基礎設施以及在我們努力降低每筆交易成本的同時推動卓越營運來逐步提高我們的核心採用率。這既包括與我們的合作夥伴合作，也包括談判。然後，顯然，我們可以影響價格，當然，這也是我們可以支配的。然後，隨著我們變得更大，只要利用我們的規模，我認為我們將能夠進行進一步的談判。因此，我認為在定價方面以及隨著時間的推移我們優化成本開始方面都有機會。

Our next question is from Stephen Sheldon with William Blair.

我們的下一個問題是由史蒂芬·謝爾頓和威廉·布萊爾提出的。

First, congrats on all you accomplished (inaudible), Chris and congrats to Aman as well, on taking over as CEO. Just on the guidance, it seems a slight sequential step down in revenue in the fourth quarter versus the number you just put up in the third quarter. And I think you said that's mainly GPV per location that's expected to be down some. So can you just talk about how much of that may be normal seasonality in restaurant revenue versus weakening consumer spending, if you have any visibility into that?

首先，恭喜你所取得的成就（聽不清楚），克里斯，也恭喜阿曼接任執行長。僅就指導而言，第四季度的收入與您剛剛在第三季度提供的數字相比似乎略有下降。我想你說過這主要是每個地點的 GPV 預計會下降一些。那麼，如果您對此有任何了解，您能否談談餐廳收入與消費者支出疲軟之間的正常季節性因素有多少？

Yes, sure. So most of it -- Stephen, it's a fair question. So the GPV pre location, which I commented in the script, is really something we saw late in September and continuing into October. So that was the primary calculus. But also remember, seasonally, GPV is lower -- GPV per location is lower in Q4. So both of those factors played a role, but the reason -- the primary reason is the trends we're seeing most recently in same-store sales.

是的，當然。所以大部分——史蒂芬，這是一個公平的問題。因此，我在劇本中評論過的 GPV 預定位置確實是我們在 9 月底看到並持續到 10 月的東西。這就是主要的計算。但也要記住，從季節性來看，GPV 較低——第四季度每個地點的 GPV 較低。因此，這兩個因素都發揮了作用，但主要原因是我們最近在同店銷售中看到的趨勢。

Got it. Okay. That's helpful. And then just on the sales force investments you're making. I guess, do you need to keep adding significantly to the sales force to keep location growth when you think about sequential additions of last few quarters, you have to keep adding sales headcount to keep location growth where it's been in recent quarters? And maybe talk about the mix of investments you're making there between new location wins and maybe the upselling team.

知道了。好的。這很有幫助。然後就是您正在進行的銷售團隊投資。我想，當您考慮過去幾個季度的連續增加時，您是否需要繼續大幅增加銷售人員以保持位置增長，您必須不斷增加銷售人員以保持最近幾個季度的位置增長？也許可以談談您在新地點獲勝和追加銷售團隊之間進行的投資組合。

Yes. Good question, Stephen. Look, I think if you look year-over-year, our net location adds are up 20%. And so a lot of our investment in sales and marketing are calibrated with that. And back to what Elena mentioned in terms of making sure that we're tracking towards the records, I think we're trying to be strategic in terms of where we see opportunity to invest, whether it's on new business or it's an upsell to continue to gain market share and continue to grow the business. But we're always trying to be balanced in terms of making sure that we're managing to economics across the board. There are some new areas we're investing in. We've talked about before, whether it's upmarket in enterprise, international, right, where we are still earlier. But overall, I think the bulk of the growth in the business is coming through our core SMB business.

是的。好問題，史蒂芬。看，我想如果你看一下同比，我們的淨位置增加了 20%。因此，我們在銷售和行銷方面的大量投資都是以此為基礎的。回到埃琳娜提到的確保我們追蹤記錄的問題，我認為我們正在努力在我們看到的投資機會方面採取策略性措施，無論是新業務還是繼續銷售以獲得市場份額並繼續發展業務。但我們一直在努力保持平衡，以確保我們能夠全面管理經濟。我們正在投資一些新領域。我們之前已經討論過，無論是企業高端市場還是國際市場，我們都還比較早。但總體而言，我認為業務成長的大部分來自我們的核心中小企業業務。

Yes. I would just add, we're set up to have a strong Q4 and on track to our expectations. And to just build on what Aman said, that consistent execution, thanks to our sales team, is really showing through, and we've got a healthy pipeline as well. So when you put that all together, I think we're going to continue that acquisition momentum into '24, which will be a big driver of our ARR growth.

是的。我想補充一點，我們已經做好了第四季度的準備，並有望實現我們的預期。就 Aman 所說的而言，由於我們的銷售團隊，一致的執行力確實得到了體現，而且我們也擁有了健康的管道。因此，當你把所有這些放在一起時，我認為我們將在 24 年繼續保持這種收購勢頭，這將成為我們 ARR 成長的重要推動力。

Our next question is from Will Nance with Goldman Sachs.

我們的下一個問題來自高盛的威爾·南斯。

I also wanted to ask a question on the subscription side or on the ARPU side. You made some comments related to the TPV per location, maybe putting the macro stuff aside, sounds like there's a little bit of mix shift going on. And if I'm interpreting that right, it's kind of smaller locations coming on, weighing down on GPV per location. Is there a similar trend playing out on the software ARPU per location, i.e., like smaller location using less software? And I guess maybe in prior quarters, you provided some color on sort of what front book ARPUs are looking like. Any color on where that's trending now? And then just your thoughts on how that progresses from here?

我還想問一個有關訂閱方面或 ARPU 方面的問題。您發表了一些與每個地點的 TPV 相關的評論，也許把宏觀的東西放在一邊，聽起來好像正在進行一些混合轉變。如果我的理解正確的話，那就是較小的地點正在出現，從而降低了每個地點的 GPV。每個地點的軟體 ARPU 是否有類似的趨勢，即較小的地點使用較少的軟體？我想也許在前幾季度，您提供了一些有關前書 ARPU 的資訊。現在流行什麼顏色？那麼您對接下來的進展有何看法？

Yes, fair question. So look, our SMB remains our core segment being at the highest level, and our success in SMB is opening actually, frankly, more opportunities across the entire TAM. So as we're leveraging our product innovation, we're going after those opportunities. And we're seeing really good progress in segments like e-com or international, right? And so as we get into those segments and extended that TAM, we're going to see both different GPV and ARPU dynamics. But at the highest level, just kind of zooming out, ARR continues to be earnout for metric. And we'll always see balancing location ARPU growth on an ongoing basis. And right now is a great example of us capitalizing on that location acquisition momentum.

是的，公平的問題。所以看，我們的 SMB 仍然是我們處於最高水平的核心部分，坦白說，我們在 SMB 方面的成功實際上為整個 TAM 提供了更多機會。因此，當我們利用我們的產品創新時，我們正在尋找這些機會。我們在電子商務或國際等領域看到了非常好的進展，對嗎？因此，當我們進入這些細分市場並擴展 TAM 時，我們將看到不同的 GPV 和 ARPU 動態。但從最高層面來看，ARR 仍然是衡量指標的效益。我們始終會看到位置 ARPU 持續成長。現在就是我們利用這一位置收購動能的一個很好的例子。

So delivering $200 million in SaaS ARR year-over-year, balancing those -- I think '23 is a great example. To your question on the front book, I'd actually reframe you back to ARR because as we're trying to optimize our land and expand motion, and we've talked a lot about the upsell team. And as we're extending it to different parts of the TAM, like I mentioned, international e-com.

因此，每年交付 2 億美元的 SaaS ARR，並平衡這些——我認為 '23 就是一個很好的例子。對於你在封面上提出的問題，我實際上會將你重新定義為 ARR，因為當我們試圖優化我們的土地並擴大行動時，我們已經討論了很多關於追加銷售團隊的問題。當我們將其擴展到 TAM 的不同部分時，就像我提到的，國際電子商務。

The mix is less comparable than what we shared a couple of quarters ago. So for us, our North Star and how we operate the business is really on ARR, basically. And that's through and through. So -- and it's also the most reflective of our financial performance, but also how the reps are comped -- rep goals are all around ARR goals. Our company bonus program is on ARR growth. So it's truly how we manage the business as well.

與我們幾個季度前分享的相比，這種組合的可比性較差。因此，對我們來說，我們的北極星以及我們的業務運作方式實際上基本上都在 ARR 上。這就是徹底的。因此，代表目標都是圍繞著 ARR 目標進行的，這也是最能反映我們的財務表現以及代表的競爭方式的。我們公司的獎金計劃是基於 ARR 成長。這也是我們管理業務的真正方式。

Got it. That makes total sense. And then I guess just on the macro point. As we think about softening same-store sales, which broadly consistent with other companies in the space. So I kind of get that point. How are you thinking about the reaction function from merchants? I guess, particularly on the go-to-market side as you have conversations with prospects. Is there -- how are you thinking about like the potential for some business to say, "Hey, we're going to take 2 handhelds instead of 3, maybe buy a little bit less hardware upfront, things of that nature. I mean, do you expect sort of like the initial sale to get more difficult in an environment where same-store sales are softening and any strategies you have to combat that?

知道了。這完全有道理。然後我想只是在宏觀層面上。當我們考慮同店銷售疲軟時，這與該領域的其他公司大致一致。所以我有點明白這一點。您如何看待商家的反應函數？我想，特別是在進入市場方面，當你與潛在客戶進行對話時。您是否會考慮某些企業可能會說：「嘿，我們將採用 2 台而不是 3 台手持設備，也許可以預先購買少一點的硬件，諸如此類的事情。我的意思是，您是否預計在同店銷售在疲軟的環境中，最初的銷售會變得更加困難，您有什麼策略來應對這種情況？

Well, we haven't seen that in our core SMB business. And as we mentioned in our guidance, we talked about Q4 net location as being in 6,500 range, and we continue to be confident in -- and if you look at on the top of funnel and our win rates, we haven't seen anything materially different. And we continue to believe that our growth is really tied to our execution and getting more in our core SMB business into flywheel status, which is really just growing customer density, growing the rep tenure in these markets. And so we haven't seen anything in our pipeline to suggest that customers are less receptive to purchasing Toast or looking to buy less of the platform.

嗯，我們在我們的核心中小企業業務中還沒有看到這一點。正如我們在指導中提到的，我們談到第四季度的淨位置在 6,500 範圍內，我們仍然有信心 - 如果你看看漏斗頂部和我們的勝率，我們沒有看到任何東西實質上不同。我們仍然相信，我們的成長確實與我們的執行力以及讓我們的核心中小企業業務進入飛輪狀態息息相關，這實際上只是增加客戶密度，提高在這些市場的代表任期。因此，我們沒有發現任何跡象表明客戶不太願意購買 Toast 或希望減少購買該平台的產品。

Our next question is from Tien-Tsin Huang with JPMorgan.

我們的下一個問題來自摩根大通的黃天欽。

All the best to Chris here. A follow-up to Will's question, just on the Toast Capital side, if you haven't seen any customers changing their behavior here, are you changing maybe your appetite to extend credit, given what you're seeing on the consumer moderation side?

祝克里斯一切順利。威爾問題的後續問題，就在 Toast Capital 方面，如果您沒有看到任何客戶改變他們的行為，考慮到您在消費者節制方面看到的情況，您是否會改變擴大信貸的胃口？

Yes, it's a fair question, Tien-Tsin. Thank you for the question. Our default rates have been in line with our expectations. And so -- and we're seeing healthy demand from our customers. So we don't have plans to change our program at the moment. It's a very healthy program, and we're managing the risk very well and have a lot of controls in place around the program. That said, if the macro were to turn, we also are confident in our ability to quickly move and throttle the originations if we needed to. But overall, the program is very healthy and meeting our expectations all the way around.

是的，這是一個公平的問題，田津。感謝你的提問。我們的違約率符合我們的預期。因此，我們看到客戶的健康需求。所以我們目前沒有計劃改變我們的計劃。這是一個非常健康的計劃，我們很好地管理了風險，並圍繞該計劃制定了很多控制措施。也就是說，如果宏觀情勢發生轉變，我們也有信心在需要時迅速採取行動並遏制源頭。但總體而言，該計劃非常健康，完全滿足我們的期望。

Okay. Great to hear. And if you the competition question. It doesn't sound like it, but we get a lot of questions around some of your competitors changing their strategies really to look a little bit more like Toast, whether it's verticalizing or forcing payment monetization that kind of thing. Are you seeing any change in competitiveness at all on the ground?

好的。很高興聽到。如果你有競爭問題。聽起來不像，但我們收到了很多關於你的競爭對手改變策略的問題，他們真的改變了策略，看起來更像Toast，無論是垂直化還是強制支付貨幣化之類的事情。您認為當地的競爭力有任何改變嗎？

Yes. Thanks, Tien-Tsin. Look, we've had -- we've built up a strong competitive program within the business as we track a lot of this data carefully. And I'll just go back to like this has always been a competitive market. And to what I just said earlier, we really do believe our growth is more tied to our own execution more than anything else.

是的。謝謝田津。看，我們已經--我們在行業內建立了一個強大的競爭計劃，因為我們仔細追蹤了大量這些數據。我會回顧一下，這一直是個競爭激烈的市場。正如我剛才所說，我們確實相信我們的成長與我們自己的執行力的關係比其他任何事情都更重要。

And we're tracking the pipeline every day. That being said, we're tracking pipeline, the top of funnel, win rates, the productivity of our team by competitor. And I think if you go back and just look at our confidence in terms of net adds in Q4. And it really just speaks to the performance of our go-to-market team and just the -- our own execution as a business.

我們每天都在追蹤管道。話雖這麼說，我們正在追蹤競爭對手的管道、漏斗頂部、獲勝率和我們團隊的生產力。我認為，如果你回頭看看我們對第四季淨增量的信心。它實際上只是說明了我們進入市場團隊的表現以及我們自己作為企業的執行力。

Our next question is from Jason Kupferberg with Bank of America.

我們的下一個問題來自美國銀行的 Jason Kupferberg。

So just on revenue, obviously, the growth rate here is still robust, but we didn't see the kind of upside, if you will, that we've been accustomed to seeing on revenue from Toast. And you talked about some slower SaaS ARPU. You talked about some slowdown in same-store sales, I mean maybe latter point. Can you quantify how much the same-store sales slowed down late in Q3? And just any other call-outs that you might have seen in the quarter, parts of the business that perhaps weren't quite as strong as you might have envisioned?

因此，就收入而言，顯然，這裡的成長率仍然強勁，但我們沒有看到我們習慣在 Toast 收入上看到的那種上行空間（如果你願意的話）。您談到了一些較慢的 SaaS ARPU。您談到同店銷售有所放緩，我的意思可能是後一點。您能否量化第三季末同店銷售放緩的程度？還有您在本季可能看到的任何其他通知，部分業務可能沒有您想像的那麼強大？

Yes. So let me take your question sort of in the -- there's lots in your question, but at the highest level, the guidance that you're seeing for the balance of the year really reflects the macro that we talked about, so GPV per location coming down. In September, in particular, as we start to see that trend, it's continuing into October. And so our guidance reflects the macro playing a role. But just zooming out, the momentum in the business that we have exiting the year into Q4 still remains healthy, regardless of the macro. So as we think about the next year, if I was to give some color on that, we're growing healthy. We've got a great operating leverage story. So as we enter into 2024, we're going to go in with the same discipline, focused on growth and -- as well on cost discipline. And we've delivered healthy growth alongside driving this operating leverage over $160 million in a year.

是的。所以讓我來回答你的問題——你的問題有很多，但在最高層面上，你看到的今年剩餘時間的指導確實反映了我們討論的宏觀，所以每個地點的 GPV下來了。特別是在九月，當我們開始看到這種趨勢時，這種趨勢將持續到十月。因此，我們的指導反映了宏觀因素的作用。但只要縮小範圍，無論宏觀經濟如何，我們今年進入第四季的業務動能仍然保持健康。因此，當我們考慮明年時，如果我要對此進行一些說明的話，我們正在健康成長。我們有一個很棒的營運槓桿故事。因此，當我們進入 2024 年時，我們將遵循相同的原則，並專注於成長和成本紀律。我們實現了健康成長，同時推動營運槓桿在一年內超過 1.6 億美元。

So we're really proud of that. So despite the macro, of course, we're paying attention to it, but that doesn't change the sentiment of this management team about the opportunity ahead of us. I think the one thing I'll say is we're going to continue to invest, obviously, in the core business, but we've got some investments in some of our emerging businesses as well, which will help us really position us for long-term growth.

所以我們對此感到非常自豪。因此，儘管存在宏觀問題，我們當然仍在關注它，但這並沒有改變這個管理團隊對我們面前的機會的看法。我認為我要說的一件事是，顯然，我們將繼續投資核心業務，但我們也對一些新興業務進行了一些投資，這將幫助我們真正定位於長期成長。

Right. Right. That makes sense. And then just coming back to the upsell team, I think you mentioned they're going to become an even more critical part of the growth story going forward. Anything you can share just in terms of the size of that team now? And what sort of productivity gains you've perhaps seen there? And to the extent you still see headroom in their productivity.

正確的。正確的。這就說得通了。然後回到追加銷售團隊，我想你提到他們將成為未來成長故事中更關鍵的部分。就目前團隊的規模而言，您有什麼可以分享的嗎？您可能在那裡看到了什麼樣的生產力提升？在某種程度上，你仍然可以看到他們的生產力有很大的提升空間。

Yes. Thanks, Jason. Good question. Look, I think as we had mentioned in -- we mentioned in this call, the team that's going after new business, new locations is a lot more mature. It's been around for 10 years plus. And the upsell team is newer, and we continue to refine and build it out, we do see it as an opportunity for us.

是的。謝謝，傑森。好問題。聽著，我認為正如我們在這次電話會議中提到的那樣，追求新業務、新地點的團隊更加成熟。它已經存在 10 多年了。追加銷售團隊是較新的，我們繼續完善和建立它，我們確實認為這對我們來說是一個機會。

We think there's headroom there in the terms of everything from growing that team to continue to optimize the motion and how we partner between the new business team that's landing restaurants, how we expand ARPU over time. And as I mentioned in the script, in the long term, we see this as an important part of our growth story over time.

我們認為，從發展團隊到繼續優化行動，以及我們如何在登陸餐廳的新業務團隊之間進行合作，以及我們如何隨著時間的推移擴大 ARPU，一切方面都有發展空間。正如我在劇本中提到的，從長遠來看，我們認為這是我們隨著時間的推移成長故事的重要組成部分。

(Operator Instructions) Our next question is from Josh Baer with Morgan Stanley.

（操作員說明）我們的下一個問題來自摩根士丹利的 Josh Baer。

I was hoping you could double-click on the GPV per location commentary. If you could provide any data or insights into what you're seeing as far as the number of items on the ticket or trading down other consumer behaviors just as it relates to restaurant sales.

我希望您能雙擊每個地點的 GPV 評論。如果您可以提供任何數據或見解來了解您所看到的內容，例如門票上的商品數量或與餐廳銷售相關的其他消費者行為。

Yes, I'll take that and feel free to jump in, Aman. So average ticket has actually held pretty steady over the last several quarters. So that's not as much a factor. I think it's really same-store sales. And really, I would say, towards the end of the quarter is when we saw that into October. So there's -- and we haven't yet seen trade downs either as we're looking at the data. Obviously, we're paying attention to that. And maybe in past recessions, that's been a factor, but we're not seeing that yet in our data.

是的，我會接受並隨時加入，阿曼。因此，過去幾季的平均票價實際上保持相當穩定。所以這並不是一個重要因素。我認為這確實是同店銷售。事實上，我想說的是，到了本季末，我們就看到了這一點，直到十月。因此，在我們查看數據時，我們還沒有看到交易下降。顯然，我們正在關注這一點。也許在過去的經濟衰退中，這是一個因素，但我們還沒有在我們的數據中看到這一點。

Great. And then a follow-up, sticking to GPV, just given your position in the industry and your expertise, I wanted to ask you about GLP-1s and your view on the near-term, longer-term impacts.

偉大的。然後是後續行動，堅持 GPV，鑑於您在行業中的地位和專業知識，我想問您有關 GLP-1 的問題以及您對近期和長期影響的看法。

Josh, this is Chris. Good question. We're not seeing anything that indicates a change in consumer behavior due to GLP-1 or Ozempic. We don't expect it to have a significant impact, and we remain laser-focused on giving the industry the best technology platform to manage their business. So we're confident dining at restaurants will remain a cornerstone activity for consumers and again, not seeing anything related to it.

喬什，這是克里斯。好問題。我們沒有看到任何跡象表明 GLP-1 或 Ozempic 會導致消費者行為發生變化。我們預計它不會產生重大影響，我們仍然專注於為行業提供最佳的技術平台來管理其業務。因此，我們相信，在餐廳用餐仍將是消費者的一項基石活動，但我們並沒有看到任何與之相關的內容。

Our last question is from Dave Koning with Baird.

我們的最後一個問題是戴夫·科寧和貝爾德提出的。

To follow up a little on Tien-Tsin's question about Toast Capital. You had tremendous success. You've grown probably 2 to 4x over the last handful of quarters. but this quarter was a little slower sequentially. And I guess I'm wondering, do you expect that to grow a little closer to the core business going forward instead of kind of the massive growth going forward?

跟進一下天進關於土司資本的問題。你取得了巨大的成功。在過去的幾個季度裡，您的業績可能成長了 2 到 4 倍。但本季的成長速度較上一季放緩。我想我想知道，您是否期望未來的發展會更接近核心業務，而不是未來的大規模成長？

Yes. I just want to remind you that over the last year, we added a 160-day loan product. So you should be mindful of that in your comparisons. But I would say in the near term, I would expect post capital stay in a similar range as a percentage of GPV is probably a good proxy to the way to think about it. But the demand is healthy. We're seeing a lot of customers come back and renew their loans. And so we're not seeing any concern about the growth of the program at all.

是的。我只是想提醒大家，去年我們增加了160天的貸款產品。所以你在比較時應該要注意這一點。但我想說，在短期內，我預期後期資本將保持在類似的範圍內，因為佔 GPV 的百分比可能是思考這個問題的一個很好的代表。但需求是健康的。我們看到很多客戶回來續簽貸款。因此，我們根本沒有看到對該計劃的成長有任何擔憂。

Got you. Okay. And maybe just as a follow-up, I just want to make sure I understood right. Did you say subscription ARPU going forward in the mid-single-digit to high single-digit year-over-year growth? And if so, what you expect in Q4 as well?

明白你了。好的。也許只是作為後續行動，我只是想確保我理解正確。您是否說過訂閱 ARPU 未來將實現中個位數到高個位數的年成長？如果是這樣，您對第四季的期望是什麼？

Yes. My commentary was actually around Q4 to be in the high -- ARPU up to the mid- to high single digits. And that was really just to zoom out to give you some texture on that. As we optimize what we land with customers upfront and some of the impact from customer mix, we expect that to be gradual. But overall, we're optimizing for ARR, which I commented on earlier. And as we're getting to 100,000 locations, we want to continue that momentum. So that's how I'd characterize that.

是的。我的評論實際上是在第四季度左右處於較高水平——ARPU 達到中高個位數。這實際上只是為了給你一些紋理縮小。當我們優化我們預先與客戶接觸的內容以及客戶組合的一些影響時，我們預計這將是漸進的。但總的來說，我們正在針對 ARR 進行優化，我之前對此進行了評論。隨著我們的服務地點達到 100,000 個，我們希望繼續保持這一勢頭。這就是我的描述。

One thing I would add to that, as I'm thinking about your question. It's just thinking about ARPU over the long term. As you think about it, what is the terminal value of ARPU or what's that level going to look like? There's a couple of things we think about, which may help frame for the group. Today, we have more than 10% of our customers paying us over $10,000 in ARPU and we see that growing steadily. But then just zooming out and you think about all the opportunity we have to grow ARPU, whether that's continued innovation, which Aman talked about in his script, whether that's our upsell team, which is very early, whether it's pricing and packaging, just there are several levers that we can put together over the next several years to drive that ARPU expansion.

當我正在考慮你的問題時，我想補充一件事。它只是從長遠考慮 ARPU。您想一想，ARPU 的最終價值是多少，或者該水平會是什麼樣子？我們考慮了一些事情，這可能有助於建立團隊。如今，我們有超過 10% 的客戶向我們支付的 ARPU 超過 10,000 美元，我們看到這一數字正在穩步增長。但如果把目光放遠，你就會想到我們提高ARPU 的所有機會，無論是阿曼在劇本中談到的持續創新，還是我們的追加銷售團隊（非常早期），無論是定價和包裝，就在那裡。我們可以在未來幾年內整合多種手段來推動 ARPU 的擴張。

And so we're very confident as we exit 2023 that we're going to continue to grow ARPU and have healthy SaaS ARR growth over time.

因此，當我們退出 2023 年時，我們非常有信心，我們將繼續成長 ARPU，並隨著時間的推移實現健康的 SaaS ARR 成長。

We have no further questions, so I'll pass the call back to the management team for any closing remarks.

我們沒有其他問題了，所以我會將電話轉回管理團隊以供結束語。

Thank you, and thank you all for your thoughtful questions. I appreciate your well wishes. Thank you to our Toasters and more importantly, to our customer base. And my last point is you're in strong hands with Aman and Elena moving forward, and have a great day. Thank you.

謝謝大家，也謝謝大家提出的深思熟慮的問題。我感謝您的良好祝愿。感謝我們的烤麵包機，更重要的是感謝我們的客戶群。我的最後一點是，您將在阿曼和埃琳娜的大力幫助下繼續前進，祝您度過美好的一天。謝謝。

Thank you, Chris.

謝謝你，克里斯。

Thanks, Chris.

謝謝，克里斯。

That concludes today's conference call. Thank you for your participation. You may now disconnect your line.

今天的電話會議到此結束。感謝您的參與。現在您可以斷開線路。