Why TOST got burnt

TLDR: Share Dilution

Reports a beat on revenue and a beat on earnings, tanks 20%, wtf?!

From press release:

Revenue for the full year 2021 was $1,705 million, an increase of 107% from the prior fiscal year.

What is should have said:

Revenue per share for the full year 2021 was $1.01. For fiscal year 2020 revenue per share was $1.20. This represents a decrease in revenue per share of 15.83%!


2021 512/508.8

2020 202/202.5

Source: https://investors.toasttab.com/news/news-details/2022/Toast-Announces-Fourth-Quarter-and-Full-Year-2021-Financial-Results/default.aspx

So it’s no wonder growth stocks like TOST are getting murdered, you have multiple compression with lower revenue per share.

Due your own due diligence and don’t trust random internet strangers


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