Toast's annual recurring revenue reached $2.15 billion in the first quarter, with year-on-year growth averaging 28% over the last four quarters, while analysts project revenue to rise by 19.8% over the next 12 months. However, the company's customer acquisition cost payback period was negative this quarter, indicating that incremental sales and marketing investments outpaced revenue. Toast's shares have fallen 10.8% over the past six months to $30.10, underperforming the S&P 500's 8.2% gain, and the stock now trades at 2.3 times forward price-to-sales.
Toast IncCustomer acquisition cost payback period was negative, indicating sales and marketing investments outpaced revenue, raising concerns about efficiency.