Toast Inc (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，今天我將擔任您的會議主持人。現在，我歡迎大家參加 Toast 收益電話會議。 （操作員指令）

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

現在我將電話轉給財務高級副總裁 Michael Senno。現在您就可以開始了。

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 截至 2023 年 9 月 30 日的第三季財報電話會議。營運長 Aman Narang；和財務長 Elena Gomez 將發表準備好的致辭，然後是我們的問答環節。

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，我想提請大家注意今天的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，這些聲明可能根據《證券交易法》被視為前瞻性的。除歷史事實陳述以外的所有陳述均為前瞻性陳述，包括管理層對未來財務和營運業績和營運支出、地點增長、未來利潤和利潤率前景、預期業務增長前景的預期，包括我們對 2023 年第四季度和全年的財務指導。

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今天的觀點，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。請參閱今天的新聞稿和我們向美國證券交易委員會提交的文件中警告性的語言，以了解可能導致實際結果與我們的預期存在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指標並非旨在取代我們的公認會計準則結果。請參閱我們的收益報告和美國證券交易委員會 (SEC) 文件，以了解這些非 GAAP 指標與最具可比性的 GAAP 指標的詳細對帳。除非另有說明，本次電話會議中所有對收入成本、毛利和毛利率、銷售和行銷費用、研發費用以及一般和行政費用的引用均基於非 GAAP 基礎。

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，新聞稿和本次電話會議的重播（包括隨附的投資者簡報）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.

現在，讓我將電話轉給克里斯。

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。感謝大家今天下午加入我們。我們的重點是實現持久、高效的成長，我們的第三個成果反映了這一目標的執行情況。我們在本季新增了超過 6,500 個淨網點，ARR 年增 40%。在擴大業務規模的同時，我們繼續在營收成長與提高效率之間取得平衡，本季調整後的 EBITDA 總計達到 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.

我們執行重點策略，推動門市成長，服務餐飲業的各個領域，大膽進行產品創新，以更好地服務我們的客戶，開拓新的細分市場，這不僅帶來了強勁的業績，也使我們處於有利地位，能夠繼續保持這一勢頭。

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，阿曼將於 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。我們共同擴大規模，為近 10 萬家餐廳提供服務，年平均經常性收入 (ARR) 超過 12 億美元。我們建立了具有強大價值觀的公司文化和員工基礎，他們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，我們建立了一個可擴展、持久的業務，產生可持續的正調整後 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.

隨著我們完成使命，我們的創新思維和產品也在此期間得到了顯著擴展。我們擴大了所服務的餐廳類型，並已進入整個美國餐廳市場。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 已經走過了十多年的歷程，我們很自豪能夠為這個經歷過許多起起落落的行業服務。沒有比過去幾年更好的例子了。餐廳經營者對前所未有的變化做出了反應，迅速擴展了服務模式以滿足不斷變化的消費者需求。儘管如此，餐廳仍然是消費者日常生活的重要組成部分。

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有所放緩，我相信餐廳將以一貫的韌性和毅力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 與我們的客戶並肩前行，並始終領先一步，幫助餐廳無論在何種情況下都能適應並蓬勃發展，而我們才剛剛起步。

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，未來面臨巨大的國際機會。我們比以往任何時候都更有能力擴張並繼續建立相鄰的成長機會，因為我們利用這一代機會成為餐廳的技術平台並改變整個產業。

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 17 年了，在加入 Toast 之前曾與他共事過。首先，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職位上，他將繼續提高執行力和創新的標準。

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，並透過在公司內部擔任的產品監督、銷售和客戶成功等多個職位對公司產生了很大影響。因此，我相信，隨著阿曼出任首席執行官，他將帶領 Toast 取得新的成功，而他身邊的領導團隊是我職業生涯中曾有機會共事過的最有才華的領導團隊。在結束我上次季度收益電話會議時，我要感謝我們的烤麵包機和我們的客戶。作為一個團隊，我們已經取得了許多成就。您為我們的任務帶來的熱情支撐了我們的發展勢頭，我對未來充滿期待。

Now I'll turn the call over to Aman.

現在我將電話轉給阿曼。

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。如果沒有您的領導以及對業務、客戶以及團隊的熱情，Toast 就不會取得如今的成就。我想我可以代表所有 Toaster 說，我們會想念你的。我們相識 17 年來，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.

正如克里斯所說，我們對未來發展業務的機會以及繼續成為餐飲界優秀合作夥伴的機會感到非常興奮。 Toast 在美國市場的佔有率剛超過 10%，我們還有很長的路要走。我們對這個行業的熱情、對幫助餐廳發展的創新的高度重視以及世界一流的市場進入和客戶成功團隊，使我們對推動持續的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。這一結果體現了我們整個業務的強勁發展勢頭。由於在位置收購和 ARPU 擴展方面的強勁執行，ARR 年增 40% 至 12 億美元。我們有信心，我們有能力長期持續提高這兩個維度的 ARR 成長。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、我們的經常性收入來源以及調整後的 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.

這種一致的執行證明了我們的團隊在業務擴大的同時優先考慮收入成長和營運槓桿。我們在本季增加了超過 6,500 個淨網點，比去年第三季成長了約 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.

隨著我們增加了客戶密度高、市場招標活躍的可行市場的數量，我們的在地化行銷策略繼續幫助推動中小企業業務的強勁發展勢頭。雖然中小企業業務仍然是位置成長的主要驅動力，但我們也在更廣泛的市場機會中取得進展。讓我分享本季的一些可以證明這一點的客戶故事。 Mariano 餐飲集團將其位於麻薩諸塞州和新罕布夏州的 4 家全方位服務餐廳改用 Toast，其中 3 家已於第三季正式上線。

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的業務，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外，他們還利用我們更新的平台功能，包括 Toast Tables 和餐飲及活動。透過使用 Toast Tables，他們可以更輕鬆地估計客人的等待時間，了解桌子的服務進度，並幫助客人均勻地坐在服務區域，以幫助他們平衡工作量。

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 與我們的員工排班產品的整合可以幫助管理人員更好地管理整個星期的員工工作。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本文件的流程。我們很高興與 Mariano 餐飲集團合作並支持他們未來幾年的成長計劃。在中端市場，我們擴大了與 Craveworthy Brands 的關係，並很高興在其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.

我們與其多概念快速休閒 QSR 組合中的 50 家門市簽約，Toast 上的門市總數達到 93 家。在企業方面，我們很高興擴大與 Nothing Bundt Cakes 的合作關係。他們於 2019 年成為客戶，目前在 Toast 上擁有超過 500 家門市。我們一直與他們合作，以提高麵包店的生產力，推動更高的數位化轉換率，並簡化他們的企業團隊的流程。為了支持他們的擴張計劃和特許經營商數量，我們在 Nothing Bundt Cakes 簽署了另外 300 個門市，並擴大了可供其特許經營商社區使用的產品範圍，包括員工排班、工資單和餐飲。此次擴張創造了一個機會，讓 Nothing Bundt Cakes 的聯營公司 ARR 隨著時間的推移翻一番，我們很高興與他們合作並支持他們的成長計劃。

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客戶蓬勃發展又能出色經營的產品。我們對餐廳的垂直關注繼續成為一個優勢，因為我們透過為該行業建立差異化產品來開拓 TAM 的更深層部分並擴大 ARPU。產品創新一直是 Toast DNA 的基礎，您應該期待我們在未來繼續保持這一重點。上週，我們發布了 Toast Now，這是一款面向餐廳經營者的應用程序，可提供對性能數據的即時洞察，允許經營者管理廚房容量等事項、調整菜單並透過行動裝置與員工隨時隨地溝通。

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要求的，並且使我們能夠與營運商建立更深的聯繫。我們對早期的採用水準感到滿意，Toast Now 推出一週後，已有約 20% 的地點使用它。此外，我們最近宣布推出適用於咖啡館和麵包店的 Toast，類似於適用於酒店餐廳的 Toast 和適用於快餐店的 Toast，我們正在為不同類型的餐廳建立解決方案，以更好地服務於 TAM 的更深層部分。 Toast for Cafe and Bakeries 整合了產品功能，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顧客的需求，從普通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細分市場，對 Toast 來說，它代表著一個有意義的成長機會。作為咖啡廳和麵包店發布的一部分，我們還宣布了餐廳零售，它提供統一的餐廳和零售 POS 系統來管理零售 SKU。 Toast 內可直接提供葡萄酒選擇或包裝咖啡等服務，為顧客提供一站式服務，以同時管理餐飲服務和零售。

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，尤其是在疫情期間和疫情之後。這是我們持續致力於滿足客戶不斷變化的需求的又一例證。這是我們的產品創新如何幫助服務TAM的更深層部分、透過Toast推動增量GPV並支持ARPU成長的一個很好的例子。我想重點介紹的一位客戶是 320 Market Café，這是一個家族經營的美食市場，在賓夕法尼亞州擁有 2 家分店，包括比薩店、咖啡館、提供熟食、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收餐飲訂單，並將訂單寫在紙上，而這些訂單經常在廚房遺失。在零售方面，增加新的零售 SKU 的過程需要超過 20 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 當然是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化方式接收餐飲訂單的方式，所有這些都在單一整合平台上完成。他們現在可以為新產品貼上標籤，並在幾分鐘內將其送到零售店，即時追蹤銷售數據，並在數位系統中記錄公司紙質餐飲訂單——他們可以在任何地方管理這些訂單，而無需使用數位系統。

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.

透過餐飲、零售、線上訂購、禮品卡等服務，320 Market Café 借助 Toast 提升了其業務水平，並為員工每週節省了大約 8 小時的手動工作時間，相當於整個班次的時間。隨著我們不斷拓展產品範圍，讓我們的行銷團隊能夠服務於各種類型和精準的客戶，我們的追加銷售團隊在推動我們平台在客戶群中的採用方面變得越來越重要。隨著我們的門市數量接近 100,000 個甚至更多，我們的追加銷售團隊的 TAM 變得越來越大，我們將繼續將此視為我們業務長期成長的巨大機會。

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.

總而言之，正如克里斯所說，我們對眼前的機會感到非常興奮。我們致力於成為餐飲社群的強大合作夥伴，並且我們有能力在未來推動持續的箭頭成長，同時建立一個能夠為客戶和股東創造長期價值的高效持久的業務。當我想到我們面前的機會時，我為我們所擁有的勢頭而充滿活力和動力。毋庸置疑，如果沒有我們員工的不懈努力，這一切都不可能實現。特別感謝所有的烤麵包機。我很高興能夠帶領這群才華洋溢的人一起改變餐飲業。

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

最後，謝謝你，我會把它轉交給艾琳娜。

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又一個季度的出色工作。我們的團隊繼續保持高水準執行力，推動 ARR 成長 40%，超過 10 億美元，並實現利潤率大幅擴大。憑藉差異化的商業模式、可擴展的市場進入引擎和創新的一體化平台，我們有能力繼續推動未來大規模高效成長。

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.

由於地點強勁成長和 ARPU 持續擴大，ARR 成長了 40%，這意味著營收年增了 37%。我們的經常性毛利流、金融科技和訂閱總額為 2.8 億美元，較去年同期成長 39%。調整後的 EBITDA 為 3,500 萬美元，占我們經常性毛利流的 13%，利潤率較上年同期提高了 22 個百分點。我們的經常性毛利流和調整後 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越 40 規則。

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市場進入勢頭，新增了超過 6,500 個淨網點。這主要是由我們在地化上市行動所產生的飛輪效應所推動的。隨著銷售代表任職期限和本地市場份額的增加，銷售代表的生產力也不斷提高，從而推動中小型企業餐廳位置數量較去年同期穩定成長。我們的目標一直是長期為整個餐廳 TAM 提供服務。我們在各個領域都取得了不斷的進步，補充了我們在中小企業領域的發展勢頭，並在市場和國際上都實現了逐步增長，即使我們的門市數量已接近 100,000 個，仍持續保持 30% 以上的增長。我們的主要關注點仍然是核心的 SMB 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.

我們擴大並深化了 TAM 的滲透，包括小型 SMB 客戶、企業客戶並進行國際擴展，我們的客戶組合將持續發展並具有不同的 SaaS 和 GPV 動態。我們的重點是最大化 ARR 成長，這是我們的北極星指標，同時整體保持同樣健康的單位經濟。我們計劃將投資組合的回報期控制在十五六個月的水平，確保在擴張和增加利潤的同時實現高效的成長。

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，SaaS ARR 年成長 47%，這得益於強勁的位置成長和 SaaS ARPU 成長 9%。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實現 SaaS ARPU 增幅在中高個位數，這反映出新上線群體的 ARPU 較低，因為我們將繼續優化前期銷售，以平衡持續的位置增長速度以及組合轉變帶來的一些影響。

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。我們擁有透過兩個地點增加 ARR 和 ARPU 的長期空間，目前平台上有超過 10% 的美國餐廳地點，經過驗證的差異化 SMB 上市動向和在整個餐廳領域不斷增長的吸引力以及國際上的綠芽，我們已準備好在未來幾年內保持健康的增長位置。

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，隨著客戶數量的擴大，我們堅信，透過定價和包裝、擴大和改進追加銷售舉措以及持續進行產品創新來提升客戶價值主張，我們有能力推動 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，第三季營收和毛利分別成長36%至8.56億美元和1.82億美元。 GPV 成長 4% 至 337 億美元，每個處理地點的平均年化 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，由於我們順應通貨膨脹的順風，且隨著我們擴展到 TAM 的更多部分，業務組合略有變化，每個加工地點的 GPV 同比變化也受到了影響。此外，在第三季後半段，我們發現同店交易量略有放緩，導致本季每個處理地點的 GPV 下降。自那時起趨勢一直保持穩定。鑑於更廣泛的宏觀環境仍然好壞參半，我們計劃 GPV 趨勢在短期內保持在當前水平，並且每個加工地點的 GPV 在第四季度將同比下降。

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.

在拖欠付款方面，由於產品需求保持強勁且違約率保持穩定，Toast Capital 主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。我們將繼續採取平衡的方式來增加 Toast 的資本，我們在即時存取 POS 數據方面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、靈活的方式獲取資本來實現成長。

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了 10 個基點。本季度包括一次性成本應計調整，而上一年則獲得了信貸。除去這些一次性影響，核心接受率與去年同期相比基本持平。

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，我們預計核心和總淨吸收率與上一季和去年同期相比將處於相似範圍內。轉向客戶獲取成本。由於地點增加和現有客戶增加更多硬件，硬體收入較去年同期成長。硬體利潤率較去年同期有所提高，主要由於運輸成本降低。

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%。我們正在對我們的行銷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，同時專注於維持健康的單位經濟和提高營運槓桿。我們採用以美元為基礎的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。投資組合的報酬期仍維持在我們設定的十五六個月左右的水平之內。

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。我們推出的適用於咖啡館和麵包店的吐司，包括餐廳零售產品，是利用產品投資透過優質服務滿足不同客戶的獨特需求來推動更深層次的位置滲透的另一個例子。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 為 Toast 帶來增量交易量。第三季度，G&A 費用年增 12%。除去本季 1,900 萬美元的壞帳和信貸相關費用（主要與 Toast 資本儲備有關），G&A 費用與去年同期持平。由於我們注重效率和嚴格的員工管理，我們在 G&A 方面看到了有意義的槓桿作用。

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，本季的一般及行政費用占我們經常性毛利潤流的百分比為 16%，比去年同期提高了 600 個基點，我們預計未來將繼續提高間接成本的經營槓桿。總體而言，第三季調整後的 EBITDA 為 3,500 萬美元，利潤率佔經常性毛利的百分比上升至 13%，這是利潤率連續第七個季度擴大。這是我們健康的收入成長和有效擴展業務的努力的結果。

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.

整體而言，我們預計將繼續建立營運槓桿，朝著我們先前製定的長期目標利潤率邁進。第三季的自由現金流為 3,700 萬美元，與我們的調整後 EBITDA 大致相同。提醒一下，營運資本將根據 GPV 趨勢和付款時間而波動。但隨著時間的推移，自由現金流應大致遵循與調整後的 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.

現在讓我來談談指引。對於第四季度，我們預計營收在 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 因季節性下降外，調整後 EBITDA 與第三季度相比的環比下降也反映了我們對同比 GPV 增長放緩的預期，以及我們為加強 2024 年的地位而進行的投資。了約 1.6 億美元。

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 年迄今所取得的成就感到非常自豪。 我們正在以持久的方式擴大業務規模，同時利用眼前的機會打造一個為我們的客戶和股東帶來重大價值的世代業務。我們已做好準備，繼續實現長期成長，同時推動整個業務的經營槓桿，並抓住擺在我們面前的長期機會。

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.

（操作員指示）我們的第一個問題來自瑞銀的 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.

我想談談您對在業務的核心訂閱部分內定價的能力或潛力的看法。因此，在過去的一年裡，一些競爭對手，例如 Square、Clover、Shopify 和其他公司，採取了不同的定價方式，我希望您能向我們介紹一下您認為貴公司在這種潛力方面的立場。

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。首先我要說的是，正如我們在之前的電話會議中所說的那樣，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，使用 Toast 的新客戶都支付更高的價格。我們也研究了客戶群在 SaaS 和支付方面的支付分佈曲線，並從中發現了機會。

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而推動並提高價格。我們也看到瞭如何在軟體和金融科技領域包裝我們的產品方面的機遇，並將其視為推動 ARPU 和價格的重要槓桿。我們也意識到——如果您看看我們面前的機會，即在兩個地區和產品現金價格上獲得市場份額，我們希望確保為我們的客戶提供透明的基於價值的定價。因此我認為從長遠來看，我們對提高價格的能力充滿信心，而且我們正在努力實現這一目標。

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。簡短的後續問題只是有關金融科技接受率的數字問題。因此，我相信資本扣除後的總收益率將會略有上升，可能會比去年同期上升 1 個基點。您提到，如果我們將一些應計項目和其他項目正常化，那麼淨收入率與去年同期相比大致持平。您能否展望一下未來，在金融科技 COGS 線上看到更多槓桿的可能性，可能是支付處理器或其中的一些其他與支付無關的項目，無論是支援還是資料中心或金融科技 COGS 線上的其他成本？

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。這是一個合理的問題。看，我認為從長遠來看，我們有機會逐步提高我們的核心收費率，無論是透過投資我們的支付基礎設施，還是透過推動卓越運營，因為我們正在努力降低每筆交易的成本。這既包括與我們的合作夥伴的合作，也包括談判。然後——顯然，我們可以影響價格，當然，這也是我們可以決定的。然後，隨著我們規模的擴大，我想我們將能夠進一步進行談判。因此，我認為不僅在定價方面存在機會，而且隨著我們逐漸優化成本，也存在著機會。

Our next question is from Stephen Sheldon with William Blair.

我們的下一個問題來自威廉布萊爾的史蒂芬謝爾頓。

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，恭喜你所取得的所有成就（聽不清楚），克里斯，同時也恭喜阿曼接任執行長。僅從指引來看，與第三季公佈的數字相比，第四季的營收似乎略有環比下降。我認為您說過這主要是預計每個地點的 GPV 會有所下降。那麼，如果您對此有任何了解，您能否談談其中有多少可能是餐廳收入的正常季節性，而不是消費者支出的減弱？

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。所以大部分內容 —— 史蒂芬，這是一個公平的問題。因此，我在腳本中評論過的 GPV 預定位實際上是我們在 9 月下旬看到並持續到 10 月的事情。這就是基本的計算。但也請記住，從季節性來看，GPV 較低 - 第四季度每個地點的 GPV 較低。所以這兩個因素都發揮了作用，但主要原因是我們最近看到的同店銷售額的趨勢。

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。然後只討論您所做的銷售團隊投資。我想，當您考慮過去幾季的連續增加時，您是否需要繼續大幅增加銷售隊伍以保持地點成長，您必須繼續增加銷售人員以保持最近幾季的地點成長？或許還可以談談您在新地點勝利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，我認為如果與去年同期相比，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根據這一點進行調整的。回到埃琳娜提到的確保我們追蹤記錄的問題，我認為我們正試圖在策略方面尋找投資機會，無論是新業務還是追加銷售，以繼續獲得市場份額並繼續發展業務。但我們始終努力保持平衡，確保全面管理好經濟。我們正在投資一些新領域。 我們之前已經討論過，無論是高端企業，國際市場，對吧，我們還處於早期階段。但總體而言，我認為業務成長的大部分來自於我們的核心 SMB 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。我只想補充一點，我們有望實現強勁的第四季度業績並達到我們的預期。正如阿曼所說，由於我們的銷售團隊，我們的持續執行確實發揮了作用，而且我們也擁有健康的管道。所以，把所有這些放在一起，我認為我們將延續這種收購勢頭進入24年，這將成為我們ARR成長的一大動力。

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?

我還想問一個關於訂閱方面或 ARPU 方面的問題。您對每個位置的 TPV 提出了一些評論，也許把宏觀的東西放在一邊，聽起來好像發生了一些混合轉變。如果我理解的沒錯，小型門市的出現會拉低每個門市的 GPV。每個地點的軟體 ARPU 是否也呈現類似的趨勢，即地點越小，使用的軟體就越少？我想也許在前幾個季度，您已經提供了一些有關前期帳面 ARPU 情況的詳細資訊。知道現在的流行趨勢嗎？那麼，您對接下來的發展有什麼看法呢？

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，公平地提問。所以，我們的 SMB 仍然是我們處於最高水平的核心部分，而我們在 SMB 方面的成功實際上為整個 TAM 帶來了更多的機會。因此，當我們利用我們的產品創新時，我們正在追逐這些機會。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。但在最高層面上，只是稍微縮小一點，ARR 仍然是衡量獲利能力的指標。我們將始終持續平衡位置 ARPU 成長。現在就是我們利用位置來獲取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，與去年同期相比成長 2 億美元的 SaaS ARR，平衡這些 — — 我認為 23 年就是一個很好的例子。對於您在封面上提出的問題，我實際上會將您重新定位到 ARR，因為我們正在嘗試優化我們的土地並擴大行動，我們已經討論了很多有關追加銷售團隊的問題。而且我們將其擴展到 TAM 的不同部分，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，這個組合的可比性較低。因此對我們來說，我們的北極星以及我們經營業務的方式基本上取決於 ARR。事實就是如此。所以 — — 它也最能反映我們的財務業績，也最能反映銷售代表的薪酬 — — 銷售代表目標都是圍繞 ARR 目標而定的。我們公司的獎金計劃是基於ARR成長的。所以這也確實是我們管理業務的方式。

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。這很有道理。然後我猜只是關於宏觀點。當我們考慮同店銷售額下滑時，這與該領域的其他公司的情況大致一致。我有點明白這一點。您如何看待商家的反應功能？我想，特別是在進入市場方面，當您與潛在客戶進行對話時。您是否考慮過某些企業可能會說「嘿，我們只買 2 台掌上電腦而不是 3 台，也許前期購買的硬體會少一些，諸如此類的事情。我的意思是，您是否預計在同店銷售疲軟的環境下，首次銷售會變得更加困難，您有什麼應對策略嗎？

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，我們還沒有在我們的核心 SMB 業務中看到這種情況。正如我們在指引中提到的那樣，我們談到第四季度的淨位置將在 6,500 的範圍內，並且我們仍然對此充滿信心 - 如果您查看漏斗頂部和我們的勝率，我們沒有看到任何實質性的差異。我們始終相信，我們的成長與我們的執行力息息相關，並且使我們的核心 SMB 業務更加進入飛輪狀態，這實際上只是增加客戶密度，增加這些市場的代表任期。因此，我們尚未看到任何跡象表明客戶對購買 Toast 的接受度降低或希望減少購買該平台的產品。

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

下一個問題來自摩根大通的 Tien-Tsin Huang。

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。接下來是威爾的問題，僅就 Toast Capital 方面而言，如果您沒有看到任何客戶改變他們的行為，那麼考慮到您在消費者節制方面所看到的情況，您是否可能改變了延長信貸期限的興趣？

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，Tien-Tsin。感謝您的提問。我們的違約率符合我們的預期。因此，我們看到客戶的需求旺盛。因此我們目前沒有改變計劃。這是一個非常健康的項目，我們管理風險很好，並且對專案實施了許多控制措施。也就是說，如果宏觀情勢發生轉變，我們也有信心在必要時快速採取行動並遏制措施。但總體而言，該計劃非常健康，完全滿足了我們的期望。

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。很高興聽到這個消息。如果你有競爭問題。聽起來不像，但我們收到了很多關於你們的一些競爭對手改變策略的問題，他們真的變得更像 Toast，無論是垂直化還是強制支付貨幣化之類的事情。您是否看到當地的競爭力發生了任何變化？

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，Tien-Tsin。你看，我們已經——我們已經在業務中建立了一個強大的競爭計劃，因為我們仔細地追蹤了大量這些數據。我只是想說，這一直是個競爭激烈的市場。正如我之前所說的，我們確實相信，我們的成長與我們自己的執行力比其他任何事情都更緊密地相關。

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。話雖如此，我們正在追蹤通路、漏斗頂部、成功率以及我們團隊的生產力（按競爭對手）。我認為，如果您回顧一下並看看我們對第四季度淨增量的信心。這實際上只是說明了我們的行銷團隊的表現以及我們自身的業務執行。

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，僅從收入來看，顯然這裡的成長率仍然強勁，但我們並沒有看到我們已經習慣看到的 Toast 收入的那種上升空間。您談到了一些較慢的 SaaS ARPU。您談到同店銷售額有所放緩，我的意思是可能是後者。您能量化第三季末同店銷售額的放緩幅度嗎？您在本季可能還看到了其他什麼問題嗎？

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，但從最高層面來說，你所看到的今年餘額的指導確實反映了我們所討論的宏觀因素，因此每個地點的 GPV 都會下降。特別是在九月份，我們開始看到這種趨勢，並且它會持續到十月。因此，我們的指導反映了宏觀因素的作用。但從宏觀角度來看，無論宏觀環境如何，我們今年第四季的業務動能仍然保持健康。因此，當我們展望明年時，如果我要對此進行一些描述的話，那就是我們正在健康地成長。我們有一個很棒的經營槓桿故事。因此，當我們進入 2024 年時，我們將遵循相同的紀律，專注於成長和成本紀律。我們在實現健康成長的同時，一年內將營業槓桿推高至 1.6 億美元以上。

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.

我們對此感到非常自豪。因此，儘管存在宏觀因素，我們當然仍在關注它，但這並沒有改變管理團隊對眼前機會的看法。我想說的一件事是，我們顯然會繼續投資核心業務，但我們也會對一些新興業務進行一些投資，這將幫助我們真正為長期成長做好準備。

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。這很有道理。然後回到追加銷售團隊，我想你提到過，他們將成為未來成長故事中更關鍵的一部分。能分享一下現在該團隊的規模嗎？您可能看到了什麼樣的生產力成長？並且在某種程度上你仍然可以看到他們的生產力還有發展空間。

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。看，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。它已經存在十多年了。而且追加銷售團隊較新，我們會不斷完善和建立它，我們確實將其視為一個機會。

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動作，再到我們如何與開設餐廳的新業務團隊合作，以及如何隨著時間的推移提高 ARPU，各方面都有發展空間。正如我在劇本中提到的那樣，從長遠來看，我們認為這是我們長期成長故事的重要組成部分。

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

（操作員指示）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.

我希望您可以雙擊每個位置評論的 GPV。如果您可以提供任何數據或見解，說明您所看到的有關票證上的物品數量或其他消費者行為與餐廳銷售的關係。

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，我接受，並且歡迎加入，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的因素。我認為這確實是同店銷售額。實際上，我想說，當我們在本季末看到這一情況時，就已經進入了 10 月。所以，從數據來看，我們還沒有看到交易下滑的現象。顯然，我們正關注這一點。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。然後是後續問題，堅持討論 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.

喬希，這是克里斯。好問題。我們沒有看到任何跡象表明消費者行為因 GLP-1 或 Ozempic 而改變。我們不希望它產生重大影響，我們仍然專注於為產業提供最好的技術平台來管理他們的業務。因此，我們相信，在餐廳用餐仍將是消費者的基本活動，而且我們仍然看不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來自貝爾德的戴夫·科寧 (Dave Koning)。

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?

稍微跟進一下 Tien-Tsin 關於 Toast Capital 的問題。你取得了巨大的成功。在過去幾個季度裡，你們的規模可能成長了 2 到 4 倍。但本季的成長速度比上一季略有放緩。我想知道，您是否預期未來的成長會更接近核心業務，而不是大規模成長？

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。我只是想提醒你，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，我預計資本後會保持在相似的範圍內，因為 GPV 的百分比可能是一個很好的思考方式。但需求是健康的。我們看到很多客戶回來並續借貸款。因此，我們根本沒有看到對該計劃增長的任何擔憂。

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?

明白了。好的。也許只是作為後續，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？如果是的話，您對第四季有何預期？

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達到高位 - ARPU 達到中高個位數。這實際上只是為了縮小以提供一些紋理。隨著我們預先優化與客戶達成的協議以及來自客戶組合的部分影響，我們預計這將是漸進的。但總的來說，我們正在針對 ARR 進行最佳化，正如我之前評論的那樣。隨著我們的門市數量達到 100,000 家，我們希望繼續保持這一勢頭。這就是我對此的描述。

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.

當我在思考你的問題時，我想補充一點。這只是從長遠角度考慮 ARPU 的問題。你想一想，ARPU 的最終價值是多少或這個水準會是什麼樣的呢？我們考慮了一些事情，它們可能有助於建立團隊。今天，我們有超過 10％ 的客戶向我們支付的 ARPU 超過 10,000 美元，並且我們看到這一數字正在穩步增長。但是，如果再把眼光放遠一點，你會想到我們增加 ARPU 的所有機會，無論是阿曼在演講中提到的持續創新，還是我們的追加銷售團隊（目前還處於早期階段），還是定價和包裝，總之，我們可以在未來幾年內整合多種槓桿來推動 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，我們非常有信心，在 2023 年結束時，我們將繼續增加 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，因此我會將電話轉回給管理團隊，以便他們做最後發言。

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，也謝謝大家提出深思熟慮的問題。我非常感謝你的祝福。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，在阿曼和艾琳娜的帶領下，您將會圓滿成功，祝您有美好的一天。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了。