Toast, Inc. (TOST) experienced a significant pre-market plunge of 8.24% on Friday, reversing momentum from the prior trading session.
The sharp decline followed the release of the company's financial outlook, which fell short of market expectations. Toast projected second-quarter non-GAAP subscription services and fintech gross profit between $565 million and $575 million, with adjusted EBITDA forecast between $185 million and $195 million. For the full year, the company guided for non-GAAP subscription services and fintech gross profit of $2.29 billion to $2.32 billion and adjusted EBITDA of $790 million to $810 million.
Investors reacted negatively to the guidance, indicating concerns about the company's growth trajectory despite strong first-quarter earnings reported earlier. The market viewed the projections as underwhelming relative to expectations, triggering significant selling pressure in pre-market trading.
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