Revenue Analysis
Analyzing TOST’s revenue over the last three quarters shows a slight decrease in both Total Revenue and Operating Revenue from $1,036 million in Q3 to $978 million in Q2 of 2023, and then a smaller subsequent decrease to $819 million by Q1. Gross Profit has mirrored this trend, decreasing from $226 million consistently in Q3 and Q2, to $174 million in Q1.
Cost Management
Cost of Revenue began at $806 million in Q3 2023, slightly decreased to $770 million in Q2, and then to $645 million in Q1. Operating Expenses followed a similar trend, reducing from $285 million in Q3 to $266 million in Q1. Total Expenses have seen significant reductions quarter-over-quarter from $1,091 million in Q3, to $1,058 million in Q2, to $911 million in Q1.
Profitability Analysis
TOST has experienced considerable challenges in profitability. EBITDA has worsened from -$51 million in Q3 to -$86 million in Q1. Operating Income has shown consistent negative values from -$59 million in Q3 to -$92 million in Q1. Pretax Income and Net Income have followed this downward trend, with Pretax Income being -$31 million in Q3 and improving to -$81 million in Q1, while Net Income was -$31 million in Q3 and -$81 million in Q1.
Cash Flow Indicators
Reconciled Depreciation was consistent at $8 million in Q3 and Q2, but decreased to $6 million in Q1. Interest Income shows variations but is generally a minor component, marked at $10 million in Q3 and Q2, and negligible in Q1.
Taxation
The Tax Rate for Calculations was notably low at 0.002 in Q3 2023, then adjusted to a typical rate of 0.21 in the following quarters. The Tax Provision was highest in Q3 at $1 million and was null in Q1. Tax Effect of Unusual Items was significant at $1,680,000 in Q3, becoming negative and diminishing subsequently.
Shareholder Metrics
Both Diluted and Basic EPS showed negative trends, from -$0.09 and -$0.06 in Q3 to -$0.19 and -$0.15 in Q1, respectively. The number of Average Shares slightly decreased over these quarters. Net Income Available to Common Stockholders was consistently negative, noted at -$49 million in Q3 and worsening to -$84 million in Q1.
Conclusion
TOST’s financial performance has depicted a challenging landscape with consistent losses, dwindling revenues, and high operational costs. Cost control measures have been somewhat effective but are yet to translate into profitability. Strategic adjustments and operational optimizations seem crucial for reversing the negative earnings trend.