TOAST, INC., 10-Q filed on 5/9/2025
Quarterly Report
v3.25.1
Cover Page - shares
 3 Months Ended
Mar. 31, 2025
May 05, 2025
Document Information [Line Items]    
Document Type 10-Q  
Document Quarterly Report true  
Document Period End Date Mar. 31, 2025  
Document Transition Report false  
Entity File Number 001-40819  
Entity Registrant Name Toast, Inc.  
Entity Incorporation, State or Country Code DE  
Entity Tax Identification Number 45-4168768  
Entity Address, Address Line One 333 Summer Street  
Entity Address, City or Town Boston,  
Entity Address, State or Province MA  
Entity Address, Postal Zip Code 02210  
City Area Code 617  
Local Phone Number 297-1005  
Title of 12(b) Security Class A common stock, par value of $0.000001 per share  
Trading Symbol TOST  
Security Exchange Name NYSE  
Entity Current Reporting Status Yes  
Entity Interactive Data Current Yes  
Entity Filer Category Large Accelerated Filer  
Entity Small Business false  
Entity Emerging Growth Company false  
Entity Shell Company false  
Entity Central Index Key 0001650164  
Amendment Flag false  
Current Fiscal Year End Date --12-31  
Document Fiscal Year Focus 2025  
Document Fiscal Period Focus Q1  
Common Class A    
Document Information [Line Items]    
Entity Common Stock, Shares Outstanding   498,000,000
Common Class B    
Document Information [Line Items]    
Entity Common Stock, Shares Outstanding   81,000,000
v3.25.1
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($)
$ in Millions
Mar. 31, 2025
Dec. 31, 2024
Current assets:    
Cash and cash equivalents $ 1,005 $ 903
Marketable securities 484 514
Accounts receivable, net 118 115
Inventories, net 111 118
Other current assets 404 325
Total current assets 2,122 1,975
Property and equipment, net 93 98
Operating lease right-of-use assets 23 25
Intangible assets, net 19 20
Goodwill 113 113
Restricted cash 67 59
Other non-current assets 127 118
Total non-current assets 442 433
Total assets 2,564 2,408
Current liabilities:    
Accounts payable 48 37
Deferred revenue 58 59
Accrued expenses and other current liabilities 738 715
Total current liabilities 844 811
Warrants to purchase common stock 19 22
Operating lease liabilities, non-current 22 24
Other long-term liabilities 6 6
Total liabilities 891 863
Commitments and Contingencies (Note 12)
Stockholders’ Equity:    
Preferred stock, par value $0.000001 per share; 100 million shares authorized, no shares issued or outstanding 0 0
Common stock, par value $0.000001 per share: Class A - 7,000 million shares authorized; 496 million and 491 million shares issued and outstanding as of March 31, 2025 and December 31, 2024, respectively Class B - 700 million shares authorized; 81 million shares issued and outstanding as of both March 31, 2025 and December 31, 2024 0 0
Accumulated other comprehensive income (loss) 0 (1)
Additional paid-in capital 3,221 3,150
Accumulated deficit (1,548) (1,604)
Total stockholders’ equity 1,673 1,545
Total liabilities and stockholders’ equity $ 2,564 $ 2,408
v3.25.1
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares
Mar. 31, 2025
Dec. 31, 2024
Stockholders’ Equity:    
Preferred stock, par value (in dollars per share) $ 0.000001 $ 0.000001
Preferred stock, authorized (in shares) 100,000,000 100,000,000
Preferred stock, issued (in shares) 0 0
Preferred stock, outstanding (in shares) 0 0
Class A common stock    
Stockholders’ Equity:    
Common stock, par value (in dollars per share) $ 0.000001 $ 0.000001
Common stock, authorized (in shares) 7,000,000,000 7,000,000,000
Common stock, issued (in shares) 496,000,000 491,000,000
Common stock, outstanding (in shares) 496,000,000 491,000,000
Class B common stock    
Stockholders’ Equity:    
Common stock, par value (in dollars per share) $ 0.000001 $ 0.000001
Common stock, authorized (in shares) 700,000,000 700,000,000
Common stock, issued (in shares) 81,000,000 81,000,000
Common stock, outstanding (in shares) 81,000,000 81,000,000
v3.25.1
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($)
shares in Millions, $ in Millions
 3 Months Ended
Mar. 31, 2025
Mar. 31, 2024
Revenue:    
Total revenue $ 1,337 $ 1,075
Costs of revenue:    
Amortization of acquired intangible assets 1 1
Total costs of revenue 991 826
Gross profit 346 249
Operating expenses:    
Sales and marketing 133 107
Research and development 84 83
General and administrative 79 74
Restructuring expenses 7 41
Total operating expenses 303 305
Income (loss) from operations 43 (56)
Other income (expense):    
Interest income, net 12 10
Change in fair value of warrant liability 3 (36)
Income (loss) before taxes 58 (82)
Income tax (expense) benefit (2) (1)
Net income (loss) $ 56 $ (83)
Net income (loss) per share attributable to common stockholders:    
Basic (in dollars per share) $ 0.10 $ (0.15)
Diluted (in dollars per share) $ 0.09 $ (0.15)
Weighted-average shares used in computing net income (loss) per share:    
Basic (in shares) 575 547
Diluted (in shares) 603 547
Subscription services    
Revenue:    
Total revenue $ 209 $ 151
Costs of revenue:    
Cost of revenue 66 50
Financial technology solutions    
Revenue:    
Total revenue 1,082 873
Costs of revenue:    
Cost of revenue 831 683
Hardware and professional services    
Revenue:    
Total revenue 46 51
Costs of revenue:    
Cost of revenue $ 93 $ 92
v3.25.1
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) - USD ($)
$ in Millions
 3 Months Ended
Mar. 31, 2025
Mar. 31, 2024
Statement of Comprehensive Income [Abstract]    
Net income (loss) $ 56 $ (83)
Other comprehensive income (loss):    
Unrealized gains (losses) on marketable securities, net of tax effect of $0 0 (1)
Currency translation adjustments 1 0
Total other comprehensive income (loss) 1 (1)
Comprehensive income (loss) $ 57 $ (84)
v3.25.1
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (Parenthetical) - USD ($)
$ in Millions
 3 Months Ended
Mar. 31, 2025
Mar. 31, 2024
Statement of Comprehensive Income [Abstract]    
Unrealized gains (losses) on marketable securities, net of tax $ 0 $ 0
v3.25.1
CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY - USD ($)
$ in Millions
Total
Preferred Stock Shares
Class A and Class B Common Stock
Additional Paid-in Capital
Accumulated Deficit
Accumulated Other Comprehensive Income (Loss)
Preferred stock balance, beginning of period (in shares) at Dec. 31, 2023   0        
Common stock balance, beginning of period (in shares) at Dec. 31, 2023     543,000,000      
Beginning balance at Dec. 31, 2023 $ 1,194     $ 2,817 $ (1,623) $ 0
Increase (Decrease) in Stockholders' Equity [Roll Forward]            
Issuance of common stock under equity plans (in shares)     9,000,000      
Issuance of common stock under equity plans 28     28    
Stock-based compensation 69     69    
Repurchases of common stock (in shares)     0      
Share repurchases (4)     (4)    
Other comprehensive income, net of tax (1)         (1)
Net income (loss) (83)       (83)  
Common stock balance, ending of period (in shares) at Mar. 31, 2024     552,000,000      
Preferred stock balance, ending of period (in shares) at Mar. 31, 2024   0        
Ending balance at Mar. 31, 2024 $ 1,203     2,910 (1,706) (1)
Preferred stock balance, beginning of period (in shares) at Dec. 31, 2024 0 0        
Common stock balance, beginning of period (in shares) at Dec. 31, 2024     572,000,000      
Beginning balance at Dec. 31, 2024 $ 1,545     3,150 (1,604) (1)
Increase (Decrease) in Stockholders' Equity [Roll Forward]            
Issuance of common stock under equity plans (in shares)     5,000,000      
Issuance of common stock under equity plans 26     26    
Stock-based compensation 62     62    
Repurchases of common stock (in shares)     0      
Share repurchases (17)     (17)    
Other comprehensive income, net of tax 1         1
Net income (loss) $ 56       56  
Common stock balance, ending of period (in shares) at Mar. 31, 2025     577,000,000      
Preferred stock balance, ending of period (in shares) at Mar. 31, 2025 0 0        
Ending balance at Mar. 31, 2025 $ 1,673     $ 3,221 $ (1,548) $ 0
v3.25.1
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($)
$ in Millions
 3 Months Ended
Mar. 31, 2025
Mar. 31, 2024
Cash flows from operating activities:    
Net income (loss) $ 56 $ (83)
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities:    
Depreciation and amortization 19 11
Stock-based compensation expense 60 66
Amortization of deferred contract acquisition costs 23 19
Change in fair value of warrant liability (3) 36
Credit loss expense 22 15
Other non-cash items 0 (2)
Changes in operating assets and liabilities:    
Accounts receivable, net (9) (22)
Other current assets (12) (19)
Deferred contract acquisition costs (33) (30)
Inventories, net 7 (2)
Accounts payable 10 16
Accrued expenses and other current liabilities (56) (37)
Deferred revenue (1) 11
Other assets and liabilities (4) 1
Net cash provided by (used in) operating activities 79 (20)
Cash flows from investing activities:    
Capital expenditures (10) (13)
Purchases of marketable securities (110) (145)
Proceeds from the sale of marketable securities 40 18
Maturities of marketable securities 102 111
Net cash provided by (used in) investing activities 22 (29)
Cash flows from financing activities:    
Change in customer funds obligations, net 64 49
Proceeds from issuance of common stock 26 28
Repurchases of Class A common stock (17) (4)
Net cash provided by financing activities 73 73
Net increase in cash, cash equivalents, cash held on behalf of customers and restricted cash 174 24
Cash, cash equivalents, cash held on behalf of customers and restricted cash at beginning of period 1,085 747
Cash, cash equivalents, cash held on behalf of customers and restricted cash at end of period 1,259 771
Reconciliation of cash, cash equivalents, cash held on behalf of customers and restricted cash    
Cash and cash equivalents 1,005 578
Cash held on behalf of customers 187 136
Restricted cash 67 57
Total cash, cash equivalents, cash held on behalf of customers and restricted cash 1,259 771
Cash Flow, Noncash Investing and Financing Activities Disclosure [Abstract]    
Stock-based compensation included in capitalized software 2 3
Cash paid for amounts included in the measurement of lease liabilities $ 2 $ 3
v3.25.1
Description of Business, Basis of Presentation and Summary of Significant Accounting Policies
 3 Months Ended
Mar. 31, 2025
Accounting Policies [Abstract]  
Description of Business, Basis of Presentation and Summary of Significant Accounting Policies Description of Business, Basis of Presentation, and Summary of Significant Accounting Policies
Toast, Inc. (“we,” or “the Company”), is a cloud-based all-in-one digital technology platform purpose-built for the entire restaurant community. We provide a comprehensive platform of software-as-a-service, or SaaS, products and financial technology solutions, including integrated payment processing, restaurant-grade hardware, and a broad ecosystem of third-party partners. We serve as the restaurant operating system, connecting front of house and back of house operations across service models including dine-in, takeout, delivery, catering, and retail.

Basis of Presentation

The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America, or U.S. GAAP, and the rules and regulations of the Securities and Exchange Commission, or the SEC, regarding interim financial reporting. Accordingly, they do not include all of the financial information and footnotes required by U.S. GAAP for complete financial statements.

The unaudited condensed consolidated financial statements include the accounts of the Company and its subsidiaries. All intercompany balances and transactions have been eliminated in consolidation. The unaudited condensed consolidated financial statements reflect all normal recurring adjustments necessary to present fairly our financial position, results of operations, comprehensive income (loss), stockholders’ equity, and cash flows for the interim periods, but are not necessarily indicative of the results of operations to be expected for the full year ending December 31, 2025 or any other future interim periods.

The accompanying unaudited condensed consolidated financial statements reflect the application of certain significant accounting policies as described below and elsewhere in these notes to the unaudited condensed consolidated financial statements. The unaudited condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements and notes included in our Annual Report on Form 10-K for the year ended December 31, 2024, or the 2024 Annual Report. As of March 31, 2025, there have been no material changes in the Company's significant accounting policies from those that were disclosed in the Annual Report on Form 10-K, unless otherwise discussed below.

Risks and Uncertainties

We are subject to a number of risks and uncertainties, including geopolitical events, changes in trade policy, including trade wars, tariffs, sanctions, or the threat of such actions, natural disasters, public health concerns or epidemics, and macroeconomic conditions, such as changes in inflation and interest rates, which may also impact consumer behavior, the restaurant industry, and our business.

Use of Estimates

The preparation of financial statements in conformity with U.S. GAAP requires management to make certain estimates and assumptions. These estimates and assumptions affect the reported amounts of assets and liabilities and disclosure of contingent liabilities at the date of the condensed consolidated financial statements and the reported amounts of revenue and expenses during the reporting period.

Estimates, judgments, and assumptions in these condensed consolidated financial statements include, but are not limited to, those related to revenue recognition, fair values and useful lives of assets acquired and liabilities assumed through business combinations, stock-based compensation expense, fair value measurements of warrants, the allowance for credit losses, liabilities associated with financial guarantees related to loan purchase activities, incremental borrowing rates applied in valuation of lease liabilities, accounting for income taxes, as well as the amortization period for deferred contract acquisition costs.
Recent Accounting Pronouncements

Accounting Pronouncements Not Yet Adopted

In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures, which requires enhancement and further transparency to certain income tax disclosures, most notably the tax rate reconciliation and income taxes paid. This ASU is effective for fiscal years beginning after December 15, 2024 on either a prospective or retrospective basis, with early adoption permitted. We are currently evaluating the impact of the adoption of this standard.

In November 2024, the FASB issued ASU 2024-03, Income Statement—Reporting Comprehensive Income—Expense Disaggregation Disclosures (Subtopic 220-40), which requires disclosure of disaggregated information about specific categories underlying certain income statement expense line items in the footnotes to the financial statements for both annual and interim periods. This ASU is effective for fiscal year beginning after December 15, 2026, and interim reporting periods beginning after December 15, 2027. Early adoption is permitted. We are currently evaluating the impact of the adoption of this standard.
v3.25.1
Financial Instruments
 3 Months Ended
Mar. 31, 2025
Fair Value Disclosures [Abstract]  
Financial Instruments Financial Instruments
The following table presents information about our financial assets and liabilities that are measured at fair value on a recurring basis and indicates the level of the fair value hierarchy used to determine such fair values (in millions):

March 31, 2025
Level 1Level 2Level 3Total
Assets:
Money market funds$752 $— $— $752 
Commercial paper— 31 — 31 
Certificates of deposit— 3 — 3 
Corporate bonds— 96 — 96 
Treasury bonds— 174 — 174 
Asset-backed securities— 180 — 180 
$752 $484 $— $1,236 
Liabilities:
Warrants to purchase common stock$— $— $19 $19 
$— $— $19 $19 

December 31, 2024
Level 1Level 2Level 3Total
Assets:
Money market funds$671 $— $— $671 
Commercial paper— 24 — 24 
Certificates of deposit— 3 — 3 
Corporate bonds— 100 — 100 
U.S. government agency securities— 7 — 7 
Treasury bonds— 233 — 233 
Asset-backed securities— 147 — 147 
$671 $514 $— $1,185 
Liabilities:
Warrants to purchase common stock$— $— $22 $22 
$— $— $22 $22 

During the three months ended March 31, 2025 and 2024, there were no transfers into or out of Level 3 measurements within the fair value hierarchy.
We did not recognize any credit losses or non-credit-related impairments related to our available-for-sale marketable debt securities for the three months ended March 31, 2025 and 2024. All unrealized losses were immaterial and recognized in other comprehensive income (loss).

The following table is an analysis of our debt securities in unrealized loss positions (in millions):

March 31, 2025December 31, 2024
Fair ValueUnrealized LossesFair ValueUnrealized Losses
Commercial paper$18 $0 $13 $0 
Corporate bonds14 0 33 0 
U.S. government agency securities— — 7 0 
Treasury bonds55 0 102 0 
Asset-backed securities23 0 13 0 
Total$110 $0 $168 $0 

Marketable Securities

The fair values of the marketable securities by contractual maturities at March 31, 2025 were as follows (in millions):

  March 31, 2025
Due within 1 year$210 
Due after 1 year through 5 years257 
Due after 5 years and thereafter17 
Total marketable securities$484 

Valuation of Warrants to Purchase Common Stock

The fair value of the warrants was determined using the Black-Scholes option-pricing model. The following table indicates the weighted-average assumptions made in estimating the fair value as of:

March 31, 2025December 31, 2024
Risk-free interest rate3.9 %4.3 %
Contractual term (in years)22
Expected volatility54.2 %57.5 %
Expected dividend yield— %— %
Exercise price per share$17.50 $17.50 

Fair Value of Liabilities

The following table provides a roll-forward of the aggregate fair value of our common stock warrant liability for which fair value is determined using Level 3 inputs (in millions):

Common Stock Warrant
Liability
Balance as of December 31, 2024
$22 
Change in fair value(3)
Balance as of March 31, 2025
$19 

As of March 31, 2025, the maximum number of shares of our common stock that could be required to be issued upon the exercise of outstanding warrants was 1 million.
v3.25.1
Loan Servicing Activities and Acquired Loans Receivable, Net
 3 Months Ended
Mar. 31, 2025
Guarantees and Product Warranties [Abstract]  
Loan Servicing Activities and Acquired Loans Receivable, Net Loan Servicing Activities and Acquired Loans Receivable, Net
Changes in the contingent liability for expected credit losses for the three months ended March 31, 2025 and 2024 were as follows (in millions):

Three Months Ended March 31,
20252024
Beginning balance$29 $29 
Credit loss expense16 11 
Reductions due to loan purchases(12)(14)
Ending balance$33 $26 

As of both March 31, 2025 and December 31, 2024, the non-contingent stand-ready liability was $10 million.

As of March 31, 2025 and December 31, 2024, $67 million and $59 million, respectively, were classified as restricted cash on the Condensed Consolidated Balance Sheets, representing cash held with commercial lending institutions. The restrictions are related to cash held as collateral pursuant to an agreement with the originating third-party bank for the working capital loans serviced by Toast Capital.
v3.25.1
Lessee Arrangements
 3 Months Ended
Mar. 31, 2025
Leases [Abstract]  
Lessee Arrangements Lessee Arrangements
The components of lease expense were as follows for the three months ended March 31, 2025 and 2024 (in millions):

Three Months Ended March 31,
20252024
Operating lease expense$2 $3 
Variable lease expense1 1 
Total$3 $4 

Operating lease expense reflects the non-cash amortization of right-of-use assets.
v3.25.1
Other Balance Sheet Information
 3 Months Ended
Mar. 31, 2025
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
Other Balance Sheet Information Other Balance Sheet Information
Accounts Receivable, Net (in millions)

March 31, 2025December 31, 2024
Accounts receivable$96 $99 
Unbilled receivables26 24 
Less: Allowance for credit losses(4)(8)
Accounts receivable, net$118 $115 

A summary of changes in our allowance for credit losses with respect to our accounts receivable is as follows (in millions):

Three Months Ended March 31,
20252024
Beginning Balance$(8)$(11)
Additions(4)(5)
Write offs8 3 
Ending Balance$(4)$(13)
Other Current Assets (in millions)

March 31, 2025December 31, 2024
Cash held on behalf of customers$187 $123 
Deferred contract acquisition costs, current (Note 6)77 74 
Prepaid expenses42 29 
Other98 99 
Total other current assets$404 $325 

Accrued Expenses and Current Liabilities (in millions)

March 31, 2025December 31, 2024
Accrued transaction-based costs$332 $312 
Customer funds obligation187 123 
Accrued expenses70 69 
Accrued payroll and bonus58 126 
Contingent liability for expected credit losses33 29 
Other liabilities58 56 
Total accrued expenses and other current liabilities
$738 $715 
v3.25.1
Revenue from Contracts with Customers
 3 Months Ended
Mar. 31, 2025
Revenue from Contract with Customer [Abstract]  
Revenue from Contracts with Customers Revenue from Contracts with Customers
The following table summarizes the activity in deferred revenue (in millions):

Three Months Ended March 31, 2025
Deferred revenue, beginning of period$63 
Deferred revenue, end of period60 
Revenue recognized in the period from amounts included in deferred revenue at the beginning of period$42 

As of March 31, 2025, approximately $875 million of revenue is expected to be recognized from remaining performance obligations for customer contracts. We expect to recognize revenue of approximately $821 million from these remaining performance obligations over the next 24 months, with the balance recognized thereafter.

The following table summarizes the activity in deferred contract acquisition costs (in millions):

Three Months Ended March 31, 2025
Beginning balance$172 
Capitalization33 
Amortization(23)
Ending balance$182 

As of March 31, 2025, $77 million of our deferred contract acquisition costs were recorded within other current assets with the remaining balance recorded within other non-current assets on the Condensed Consolidated Balance Sheet. Amortization expense attributable to deferred contract acquisition costs was $19 million for the three months ended March 31, 2024.
v3.25.1
Stockholders’ Equity
 3 Months Ended
Mar. 31, 2025
Equity [Abstract]  
Stockholders’ Equity Stockholders’ Equity
Stock-Based Compensation

Stock-based compensation expense recognized for the three months ended March 31, 2025 and 2024, was as follows (in millions):

Three Months Ended March 31,
20252024
Cost of revenue$9 $10 
Sales and marketing14 11 
Research and development20 18 
General and administrative14 17 
Restructuring expenses3 10 
Total stock-based compensation$60 $66 

Stock Options

The following is a summary of stock option activity under our stock option plans for the three months ended March 31, 2025:


Number of
Shares (in millions)
Weighted-
Average
Exercise
Price (per share)
Weighted-Average
Remaining
Contractual
Term (in years)
Aggregate
Intrinsic
Value (in millions)(1)
Outstanding as of December 31, 2024
28 $9.42 
Granted2 33.49 
Exercised(2)8.76 
Forfeited0 16.09 
Outstanding as of March 31, 2025
28 $10.94 
Options vested and expected to vest as of March 31, 2025
27 $10.47 5.7$605 
(1) The aggregate intrinsic value was determined as the difference between the closing price of the Class A common stock on the last trading day of March 2025, or the date of exercise, as appropriate, and the exercise price, multiplied by the number of in-the-money options that would have been received by the option holders had all option holders exercised their in-the-money options at period end.

The aggregate intrinsic value of options exercised was $57 million during the three months ended March 31, 2025.

As of March 31, 2025, total unrecognized stock-based compensation expense related to the options was $71 million and is expected to be recognized over the remaining weighted-average service period of 2.9 years.
Restricted Stock Units 

The following table summarizes restricted stock units, or RSU, activity during the three months ended March 31, 2025:

RSU
(in millions)
Weighted-Average Grant Date Fair Value (per share)
Outstanding balance as of December 31, 2024
22 $21.41 
Granted4 33.73 
Vested(3)21.55 
Forfeited(1)20.55 
Outstanding balance as of March 31, 2025
22 $23.63 
Expected to vest as of March 31, 2025
19 $23.37 

The fair value of RSUs vested during the three months ended March 31, 2025 was $109 million.

As of March 31, 2025, total unrecognized stock-based compensation expense related to the RSUs was $383 million and is expected to be recognized over the remaining weighted-average service period of 2.7 years.

Share Repurchase Program

In February 2024, we announced the authorization of a share repurchase program for the repurchase of shares in our Class A common stock, in an aggregate amount of up to $250 million. The repurchase program has no expiration date, does not obligate us to acquire any particular amount of our Class A common stock, and may be suspended at any time at our discretion. The timing and actual number of shares repurchased may depend on a variety of factors, including price, general business and market conditions, and alternative investment opportunities.

During the three months ended March 31, 2025, we repurchased $17 million in Class A common stock. As of March 31, 2025, approximately $177 million remained authorized for repurchase under our share repurchase program.
v3.25.1
Restructuring Plan
 3 Months Ended
Mar. 31, 2025
Restructuring and Related Activities [Abstract]  
Restructuring Plan Restructuring Plan
In February 2024, we announced a restructuring plan, or the Restructuring Plan, designed to promote overall operating expense efficiency, including a reduction in force and certain other actions to reorganize our facilities and operations. In connection with this Restructuring Plan, we incurred restructuring and restructuring-related charges of $41 million during the three months ended March 31, 2024, primarily consisting of cash severance costs and the acceleration of stock-based compensation for certain terminated employees. As of March 31, 2025, we substantially completed the Restructuring Plan with immaterial remaining liabilities.

During the three months ended March 31, 2025, we incurred $7 million of one-time restructuring costs to continue focusing on operational efficiency, primarily consisting of cash severance costs and the acceleration of stock-based compensation for certain terminated employees. These charges were recorded within restructuring expenses on our Condensed Consolidated Statements of Operations. As of March 31, 2025, the remaining liability was immaterial.
v3.25.1
Income Taxes
 3 Months Ended
Mar. 31, 2025
Income Tax Disclosure [Abstract]  
Income Taxes Income Taxes
We compute our provision for income taxes by applying the estimated annual effective tax rate to year-to-date income from recurring operations, and adjust the provision for discrete tax items recorded in the period.

Our effective income tax rate was 2.6% and (1.4)% for the three months ended March 31, 2025 and 2024, respectively. The effective tax rate for each period differs from the statutory rate primarily as a result of having a full valuation allowance maintained against our net deferred tax assets.
The income tax expense was $2 million and $1 million for the three months ended March 31, 2025 and 2024, respectively. The change in the provision is primarily driven by a mix of earnings in countries with differing statutory tax rates, offset by excess tax benefits of stock-based compensation.
v3.25.1
Net Income (Loss) Per Share Attributable to Common Stockholders
 3 Months Ended
Mar. 31, 2025
Earnings Per Share [Abstract]  
Net Income (Loss) Per Share Attributable to Common Stockholders Net Income (Loss) Per Share Attributable to Common Stockholders
Basic net income (loss) per share is determined by dividing net income or loss by the weighted-average shares outstanding for the period. We analyze the potential dilutive effect of stock options, unvested restricted stock, RSUs, our employee stock purchase plan, and warrants to purchase common stock, during periods we generate net income, or when income is recognized related to changes in fair value of warrant liabilities.

Class A common stock and Class B common stock share proportionately, on a per share basis, in our net income (losses) and participate equally in the dividends on common stock, if declared. We allocate net income (losses) attributable to common stock between the common stock classes on a one-to-one basis when computing net income (loss) per share. As a result, basic and diluted net income (loss) per share of Class A common stock and Class B common stock are equivalent.

The following table sets forth the calculation of net income (loss) per share attributable to common stockholders (in millions, except per share amounts):

Three Months Ended March 31,
20252024
Numerator:
Net income (loss), basic$56 $(83)
Less: Gain on change in fair value of warrant liabilities (1)
3 — 
Net income (loss), diluted$53 $(83)
Denominator:
Weighted-average shares of common stock outstanding - basic575 547 
Effect of dilutive securities:
Dilutive common share equivalents included in dilutive shares28 — 
Weighted-average shares of common stock outstanding - diluted603 547 
Net income (loss) per share, basic$0.10 $(0.15)
Net income (loss) per share, diluted$0.09 $(0.15)
(1) During the three months ended March 31, 2025, we recorded a gain on fair value remeasurement of warrant liabilities, which was added back to net income to adjust for the dilutive impact of the warrants. We adjusted the weighted-average shares outstanding for the incremental dilutive shares using the treasury stock method. During the three months ended March 31, 2024, we recorded a loss on fair
value remeasurement of our warrant liability, which was excluded from the calculation of diluted earnings per share due to its anti-dilutive effect.

The following potential shares of common stock were excluded from the calculation of diluted net income (loss) per share because their effect would have been anti-dilutive for the periods presented (in millions):

Three Months Ended March 31,
20252024
Options to purchase Class A common stock and Class B common stock1 43 
Unvested restricted stock units1 32 
Warrants to purchase Class B common stock
— 7 
2 82 
v3.25.1
Segment Information
 3 Months Ended
Mar. 31, 2025
Segment Reporting [Abstract]  
Segment Information Segment Information
We have one reportable segment, Toast, Inc., consisting of a comprehensive platform of software-as-a-service, or SaaS, products, financial technology solutions, including integrated payment processing, restaurant-grade hardware, and a broad ecosystem of third-party partners. We manage the business activities on a consolidated basis. The types of software and services from which we generate revenue are described under our “Revenue Recognition” policy within our “Summary of Significant Accounting Policies” as disclosed in our Annual Report on Form 10-K for the year ended December 31, 2024.

Our chief operating decision maker, or CODM, is our Chief Executive Officer. The CODM assesses performance for the segment and decides how to allocate resources based on net income (loss) that is also reported on the Condensed Consolidated Statements of Operations as consolidated net income (loss). The CODM does not use any segment asset measures to assess performance and decide how to allocate resources.

The following table sets out our measure of profit or loss and significant segment expenses (in millions):

Three months ended March 31,
20252024
Revenue$1,337 $1,075 
Costs of revenue(1)
(980)(815)
Sales and marketing(1)
(117)(93)
Research and development(1)
(62)(63)
General and administrative(1)
(64)(56)
Stock-based compensation and related payroll taxes(64)(62)
Other items(2)
6 (69)
Net income (loss)$56 $(83)
(1) These expenses exclude stock-based compensation and related payroll taxes. Stock-based compensation and related payroll taxes are presented separately as an additional significant segment expense, which consist of both stock-based compensation (refer to Note 7. Stockholders’ Equity for tabular disclosure of amounts included within other significant segment expenses) and the corresponding payroll taxes.
(2) Other segment items include restructuring and restructuring-related expenses, interest income, net, change in fair value of warrant liability, and income tax (expense) benefit.
v3.25.1
Commitments and Contingencies
 3 Months Ended
Mar. 31, 2025
Commitments and Contingencies Disclosure [Abstract]  
Commitments and Contingencies Commitments and Contingencies
Purchase Commitments

As of March 31, 2025, our non-cancellable purchase obligations to hardware suppliers totaled $69 million, all of which is due within the next 12 months.
As of March 31, 2025, our non-cancellable contractual commitments with our cloud service providers and other vendors totaled $148 million of which $31 million is due to within the next 12 months and $117 million thereafter.

Legal Proceedings

From time to time, we may be involved in legal actions arising in the ordinary course of business. Each of these matters is subject to various uncertainties, and it is possible that some of these matters may be resolved unfavorably. We establish accruals for losses that management deems to be probable and subject to reasonable estimates. We do not expect any claims with a reasonably possible adverse outcome to have a material impact on us, and, accordingly, have not accrued for any material claims.
v3.25.1
Subsequent Events
 3 Months Ended
Mar. 31, 2025
Subsequent Events [Abstract]  
Subsequent Events Subsequent Events
During 2021, we entered into a senior secured credit facility, or the 2021 Facility, which we subsequently amended on March 2, 2023 to replace the London Interbank Offered Rate, or LIBOR, with the Secured Overnight Financing Rate, or SOFR. The 2021 Facility is subject to a minimum liquidity covenant of $250 million, subject to certain additional customary restrictive covenants in connection with the February 2024 share repurchase program. We were in compliance with all financial covenants as of March 31, 2025. As of March 31, 2025, there were no borrowings outstanding on the 2021 Facility and outstanding letters of credit totaled $4 million. As of March 31, 2025, our total available borrowing capacity under the 2021 Facility was $326 million.
On May 6, 2025, we entered into a Second Amendment Agreement to the 2021 Facility, referred to as the Restated Credit Agreement, which effected certain modifications to the financial covenants and terms set forth in the 2021 Facility. The Restated Credit Agreement (i) increases the total borrowing capacity from $330 million to $350 million with a letter of credit sublimit of $75 million and (ii) extends the term of the 2021 Facility from June 8, 2026 to May 6, 2030. Upon the date of the amendment, there were no borrowings outstanding and outstanding letters of credit totaled $4 million; our total available borrowing capacity under the Restated Credit Agreement was $346 million. For further information, please refer to the description of the Restated Credit Agreement included in section (a) of Part II, Item 5, “Other Information” included in this Quarterly Report on Form 10-Q.
v3.25.1
Pay vs Performance Disclosure - USD ($)
$ in Millions
 3 Months Ended
Mar. 31, 2025
Mar. 31, 2024
Pay vs Performance Disclosure    
Net income (loss) $ 56 $ (83)
v3.25.1
Insider Trading Arrangements
 3 Months Ended
Mar. 31, 2025
shares
Trading Arrangements, by Individual  
Non-Rule 10b5-1 Arrangement Adopted false
Rule 10b5-1 Arrangement Terminated false
Non-Rule 10b5-1 Arrangement Terminated false
Brian Elworthy [Member]  
Trading Arrangements, by Individual  
Material Terms of Trading Arrangement On February 26, 2025, Brian Elworthy, our General Counsel and Corporate Secretary, and Brian R. Elworthy Irrevocable Trust of 2019, where shares held by such trusts are held indirectly by Mr. Elworthy, collectively entered into a trading plan pursuant to Rule 10b5-1 of the Exchange Act. This trading plan provides for the sale from time to time of a maximum of 339,368 shares of our Class A common stock (300,000 shares contributed by Mr. Elworthy; and 39,368 shares contributed by the Brian R. Elworthy Irrevocable Trust of 2019) pursuant to the terms of the plan. This trading plan expires on December 2, 2025, or earlier if all transactions under the trading arrangement are completed. The trading arrangement is intended to satisfy the affirmative defense in Rule 10b5-1(c).
Name Brian Elworthy
Title General Counsel and Corporate Secretary
Rule 10b5-1 Arrangement Adopted true
Adoption Date February 26, 2025
Expiration Date December 2, 2025
Arrangement Duration 279 days
Aggregate Available 339,368
Mr. Elworthy Trading Arrangement, Common Stock [Member] | Brian R. Elworthy [Member]  
Trading Arrangements, by Individual  
Aggregate Available 300,000
Brian R. Elworthy Irrevocable Trust of 2019 Trading Arrangement, Common Stock [Member] | Brian Elworthy [Member]  
Trading Arrangements, by Individual  
Aggregate Available 39,368
v3.25.1
Description of Business, Basis of Presentation and Summary of Significant Accounting Policies (Policies)
 3 Months Ended
Mar. 31, 2025
Accounting Policies [Abstract]  
Basis of Presentation
Basis of Presentation

The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America, or U.S. GAAP, and the rules and regulations of the Securities and Exchange Commission, or the SEC, regarding interim financial reporting. Accordingly, they do not include all of the financial information and footnotes required by U.S. GAAP for complete financial statements.

The unaudited condensed consolidated financial statements include the accounts of the Company and its subsidiaries. All intercompany balances and transactions have been eliminated in consolidation. The unaudited condensed consolidated financial statements reflect all normal recurring adjustments necessary to present fairly our financial position, results of operations, comprehensive income (loss), stockholders’ equity, and cash flows for the interim periods, but are not necessarily indicative of the results of operations to be expected for the full year ending December 31, 2025 or any other future interim periods.

The accompanying unaudited condensed consolidated financial statements reflect the application of certain significant accounting policies as described below and elsewhere in these notes to the unaudited condensed consolidated financial statements. The unaudited condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements and notes included in our Annual Report on Form 10-K for the year ended December 31, 2024, or the 2024 Annual Report. As of March 31, 2025, there have been no material changes in the Company's significant accounting policies from those that were disclosed in the Annual Report on Form 10-K, unless otherwise discussed below.
Use of Estimates
Use of Estimates

The preparation of financial statements in conformity with U.S. GAAP requires management to make certain estimates and assumptions. These estimates and assumptions affect the reported amounts of assets and liabilities and disclosure of contingent liabilities at the date of the condensed consolidated financial statements and the reported amounts of revenue and expenses during the reporting period.

Estimates, judgments, and assumptions in these condensed consolidated financial statements include, but are not limited to, those related to revenue recognition, fair values and useful lives of assets acquired and liabilities assumed through business combinations, stock-based compensation expense, fair value measurements of warrants, the allowance for credit losses, liabilities associated with financial guarantees related to loan purchase activities, incremental borrowing rates applied in valuation of lease liabilities, accounting for income taxes, as well as the amortization period for deferred contract acquisition costs.
Recent Accounting Pronouncements
Recent Accounting Pronouncements

Accounting Pronouncements Not Yet Adopted

In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures, which requires enhancement and further transparency to certain income tax disclosures, most notably the tax rate reconciliation and income taxes paid. This ASU is effective for fiscal years beginning after December 15, 2024 on either a prospective or retrospective basis, with early adoption permitted. We are currently evaluating the impact of the adoption of this standard.

In November 2024, the FASB issued ASU 2024-03, Income Statement—Reporting Comprehensive Income—Expense Disaggregation Disclosures (Subtopic 220-40), which requires disclosure of disaggregated information about specific categories underlying certain income statement expense line items in the footnotes to the financial statements for both annual and interim periods. This ASU is effective for fiscal year beginning after December 15, 2026, and interim reporting periods beginning after December 15, 2027. Early adoption is permitted. We are currently evaluating the impact of the adoption of this standard.
v3.25.1
Financial Instruments (Tables)
 3 Months Ended
Mar. 31, 2025
Fair Value Disclosures [Abstract]  
Schedule of Assets and Liabilities Measured on Recurring Basis
The following table presents information about our financial assets and liabilities that are measured at fair value on a recurring basis and indicates the level of the fair value hierarchy used to determine such fair values (in millions):

March 31, 2025
Level 1Level 2Level 3Total
Assets:
Money market funds$752 $— $— $752 
Commercial paper— 31 — 31 
Certificates of deposit— 3 — 3 
Corporate bonds— 96 — 96 
Treasury bonds— 174 — 174 
Asset-backed securities— 180 — 180 
$752 $484 $— $1,236 
Liabilities:
Warrants to purchase common stock$— $— $19 $19 
$— $— $19 $19 

December 31, 2024
Level 1Level 2Level 3Total
Assets:
Money market funds$671 $— $— $671 
Commercial paper— 24 — 24 
Certificates of deposit— 3 — 3 
Corporate bonds— 100 — 100 
U.S. government agency securities— 7 — 7 
Treasury bonds— 233 — 233 
Asset-backed securities— 147 — 147 
$671 $514 $— $1,185 
Liabilities:
Warrants to purchase common stock$— $— $22 $22 
$— $— $22 $22 
Schedule of Debt Securities, Available-for-Sale, Unrealized Loss Position, Fair Value
The following table is an analysis of our debt securities in unrealized loss positions (in millions):

March 31, 2025December 31, 2024
Fair ValueUnrealized LossesFair ValueUnrealized Losses
Commercial paper$18 $0 $13 $0 
Corporate bonds14 0 33 0 
U.S. government agency securities— — 7 0 
Treasury bonds55 0 102 0 
Asset-backed securities23 0 13 0 
Total$110 $0 $168 $0 
Schedule of Marketable Securities
The fair values of the marketable securities by contractual maturities at March 31, 2025 were as follows (in millions):

  March 31, 2025
Due within 1 year$210 
Due after 1 year through 5 years257 
Due after 5 years and thereafter17 
Total marketable securities$484 
Schedule of Measurement Inputs and Valuation Techniques The following table indicates the weighted-average assumptions made in estimating the fair value as of:
March 31, 2025December 31, 2024
Risk-free interest rate3.9 %4.3 %
Contractual term (in years)22
Expected volatility54.2 %57.5 %
Expected dividend yield— %— %
Exercise price per share$17.50 $17.50 
Schedule of Liabilities Measured on Recurring and Nonrecurring Basis
The following table provides a roll-forward of the aggregate fair value of our common stock warrant liability for which fair value is determined using Level 3 inputs (in millions):

Common Stock Warrant
Liability
Balance as of December 31, 2024
$22 
Change in fair value(3)
Balance as of March 31, 2025
$19 
v3.25.1
Loan Servicing Activities and Acquired Loans Receivable, Net (Tables)
 3 Months Ended
Mar. 31, 2025
Guarantees and Product Warranties [Abstract]  
Schedule of Off-Balance Sheet Credit Loss Liability
Changes in the contingent liability for expected credit losses for the three months ended March 31, 2025 and 2024 were as follows (in millions):

Three Months Ended March 31,
20252024
Beginning balance$29 $29 
Credit loss expense16 11 
Reductions due to loan purchases(12)(14)
Ending balance$33 $26 
v3.25.1
Lessee Arrangements (Tables)
 3 Months Ended
Mar. 31, 2025
Leases [Abstract]  
Schedule of Lease Cost
The components of lease expense were as follows for the three months ended March 31, 2025 and 2024 (in millions):

Three Months Ended March 31,
20252024
Operating lease expense$2 $3 
Variable lease expense1 1 
Total$3 $4 
v3.25.1
Other Balance Sheet Information (Tables)
 3 Months Ended
Mar. 31, 2025
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
Schedule of Accounts Receivable, net
Accounts Receivable, Net (in millions)

March 31, 2025December 31, 2024
Accounts receivable$96 $99 
Unbilled receivables26 24 
Less: Allowance for credit losses(4)(8)
Accounts receivable, net$118 $115 
Schedule of Allowance for Credit Loss
A summary of changes in our allowance for credit losses with respect to our accounts receivable is as follows (in millions):

Three Months Ended March 31,
20252024
Beginning Balance$(8)$(11)
Additions(4)(5)
Write offs8 3 
Ending Balance$(4)$(13)
Schedule of Other Current Assets
Other Current Assets (in millions)

March 31, 2025December 31, 2024
Cash held on behalf of customers$187 $123 
Deferred contract acquisition costs, current (Note 6)77 74 
Prepaid expenses42 29 
Other98 99 
Total other current assets$404 $325 
Schedule of Accrued Expenses and Other Current Liabilities
Accrued Expenses and Current Liabilities (in millions)

March 31, 2025December 31, 2024
Accrued transaction-based costs$332 $312 
Customer funds obligation187 123 
Accrued expenses70 69 
Accrued payroll and bonus58 126 
Contingent liability for expected credit losses33 29 
Other liabilities58 56 
Total accrued expenses and other current liabilities
$738 $715 
v3.25.1
Revenue from Contracts with Customers (Tables)
 3 Months Ended
Mar. 31, 2025
Revenue from Contract with Customer [Abstract]  
Schedule of Contract Asset Contract Liability and Receivable
The following table summarizes the activity in deferred revenue (in millions):

Three Months Ended March 31, 2025
Deferred revenue, beginning of period$63 
Deferred revenue, end of period60 
Revenue recognized in the period from amounts included in deferred revenue at the beginning of period$42 
Schedule of Capitalized Contract Cost
The following table summarizes the activity in deferred contract acquisition costs (in millions):

Three Months Ended March 31, 2025
Beginning balance$172 
Capitalization33 
Amortization(23)
Ending balance$182 
v3.25.1
Stockholders’ Equity (Tables)
 3 Months Ended
Mar. 31, 2025
Equity [Abstract]  
Schedule of Share-based Compensation Expense
Stock-based compensation expense recognized for the three months ended March 31, 2025 and 2024, was as follows (in millions):

Three Months Ended March 31,
20252024
Cost of revenue$9 $10 
Sales and marketing14 11 
Research and development20 18 
General and administrative14 17 
Restructuring expenses3 10 
Total stock-based compensation$60 $66 
Schedule of Stock Option Activity
The following is a summary of stock option activity under our stock option plans for the three months ended March 31, 2025:


Number of
Shares (in millions)
Weighted-
Average
Exercise
Price (per share)
Weighted-Average
Remaining
Contractual
Term (in years)
Aggregate
Intrinsic
Value (in millions)(1)
Outstanding as of December 31, 2024
28 $9.42 
Granted2 33.49 
Exercised(2)8.76 
Forfeited0 16.09 
Outstanding as of March 31, 2025
28 $10.94 
Options vested and expected to vest as of March 31, 2025
27 $10.47 5.7$605 
(1) The aggregate intrinsic value was determined as the difference between the closing price of the Class A common stock on the last trading day of March 2025, or the date of exercise, as appropriate, and the exercise price, multiplied by the number of in-the-money options that would have been received by the option holders had all option holders exercised their in-the-money options at period end.
Schedule of Restricted Stock Unit Activity
The following table summarizes restricted stock units, or RSU, activity during the three months ended March 31, 2025:

RSU
(in millions)
Weighted-Average Grant Date Fair Value (per share)
Outstanding balance as of December 31, 2024
22 $21.41 
Granted4 33.73 
Vested(3)21.55 
Forfeited(1)20.55 
Outstanding balance as of March 31, 2025
22 $23.63 
Expected to vest as of March 31, 2025
19 $23.37 
v3.25.1
Net Income (Loss) Per Share Attributable to Common Stockholders (Tables)
 3 Months Ended
Mar. 31, 2025
Earnings Per Share [Abstract]  
Schedule of Net Income (Loss) Per Share Attributable to Common Stockholders
The following table sets forth the calculation of net income (loss) per share attributable to common stockholders (in millions, except per share amounts):

Three Months Ended March 31,
20252024
Numerator:
Net income (loss), basic$56 $(83)
Less: Gain on change in fair value of warrant liabilities (1)
3 — 
Net income (loss), diluted$53 $(83)
Denominator:
Weighted-average shares of common stock outstanding - basic575 547 
Effect of dilutive securities:
Dilutive common share equivalents included in dilutive shares28 — 
Weighted-average shares of common stock outstanding - diluted603 547 
Net income (loss) per share, basic$0.10 $(0.15)
Net income (loss) per share, diluted$0.09 $(0.15)
(1) During the three months ended March 31, 2025, we recorded a gain on fair value remeasurement of warrant liabilities, which was added back to net income to adjust for the dilutive impact of the warrants. We adjusted the weighted-average shares outstanding for the incremental dilutive shares using the treasury stock method. During the three months ended March 31, 2024, we recorded a loss on fair
value remeasurement of our warrant liability, which was excluded from the calculation of diluted earnings per share due to its anti-dilutive effect.
Schedule of Antidilutive Securities Excluded from Computation of Earnings or Loss Per Share
The following potential shares of common stock were excluded from the calculation of diluted net income (loss) per share because their effect would have been anti-dilutive for the periods presented (in millions):

Three Months Ended March 31,
20252024
Options to purchase Class A common stock and Class B common stock1 43 
Unvested restricted stock units1 32 
Warrants to purchase Class B common stock
— 7 
2 82 
v3.25.1
Segment Information (Tables)
 3 Months Ended
Mar. 31, 2025
Segment Reporting [Abstract]  
Schedule of Segment Reporting Information, by Segment
The following table sets out our measure of profit or loss and significant segment expenses (in millions):

Three months ended March 31,
20252024
Revenue$1,337 $1,075 
Costs of revenue(1)
(980)(815)
Sales and marketing(1)
(117)(93)
Research and development(1)
(62)(63)
General and administrative(1)
(64)(56)
Stock-based compensation and related payroll taxes(64)(62)
Other items(2)
6 (69)
Net income (loss)$56 $(83)
(1) These expenses exclude stock-based compensation and related payroll taxes. Stock-based compensation and related payroll taxes are presented separately as an additional significant segment expense, which consist of both stock-based compensation (refer to Note 7. Stockholders’ Equity for tabular disclosure of amounts included within other significant segment expenses) and the corresponding payroll taxes.
(2) Other segment items include restructuring and restructuring-related expenses, interest income, net, change in fair value of warrant liability, and income tax (expense) benefit.
v3.25.1
Financial Instruments - Schedule of Assets and Liabilities Measured on Recurring Basis (Details) - USD ($)
$ in Millions
Mar. 31, 2025
Dec. 31, 2024
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Assets $ 484  
Warrants to purchase common stock 19 $ 22
Fair Value, Recurring    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Total assets 1,236 1,185
Warrants to purchase common stock 19 22
Total liabilities 19 22
Level 1 | Fair Value, Recurring    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Total assets 752 671
Warrants to purchase common stock 0 0
Total liabilities 0 0
Level 2 | Fair Value, Recurring    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Total assets 484 514
Warrants to purchase common stock 0 0
Total liabilities 0 0
Level 3 | Fair Value, Recurring    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Total assets 0 0
Warrants to purchase common stock 19 22
Total liabilities 19 22
Money market funds | Fair Value, Recurring    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Assets 752 671
Money market funds | Level 1 | Fair Value, Recurring    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Assets 752 671
Money market funds | Level 2 | Fair Value, Recurring    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Assets 0 0
Money market funds | Level 3 | Fair Value, Recurring    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Assets 0 0
Commercial paper | Fair Value, Recurring    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Assets 31 24
Commercial paper | Level 1 | Fair Value, Recurring    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Assets 0 0
Commercial paper | Level 2 | Fair Value, Recurring    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Assets 31 24
Commercial paper | Level 3 | Fair Value, Recurring    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Assets 0 0
Certificates of deposit | Fair Value, Recurring    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Assets 3 3
Certificates of deposit | Level 1 | Fair Value, Recurring    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Assets 0 0
Certificates of deposit | Level 2 | Fair Value, Recurring    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Assets 3 3
Certificates of deposit | Level 3 | Fair Value, Recurring    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Assets 0 0
Corporate bonds | Fair Value, Recurring    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Assets 96 100
Corporate bonds | Level 1 | Fair Value, Recurring    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Assets 0 0
Corporate bonds | Level 2 | Fair Value, Recurring    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Assets 96 100
Corporate bonds | Level 3 | Fair Value, Recurring    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Assets 0 0
U.S. government agency securities | Fair Value, Recurring    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Assets   7
U.S. government agency securities | Level 1 | Fair Value, Recurring    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Assets   0
U.S. government agency securities | Level 2 | Fair Value, Recurring    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Assets   7
U.S. government agency securities | Level 3 | Fair Value, Recurring    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Assets   0
Treasury bonds | Fair Value, Recurring    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Assets 174 233
Treasury bonds | Level 1 | Fair Value, Recurring    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Assets 0 0
Treasury bonds | Level 2 | Fair Value, Recurring    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Assets 174 233
Treasury bonds | Level 3 | Fair Value, Recurring    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Assets 0 0
Asset-backed securities | Fair Value, Recurring    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Assets 180 147
Asset-backed securities | Level 1 | Fair Value, Recurring    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Assets 0 0
Asset-backed securities | Level 2 | Fair Value, Recurring    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Assets 180 147
Asset-backed securities | Level 3 | Fair Value, Recurring    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Assets $ 0 $ 0
v3.25.1
Financial Instruments - Schedule of Unrealized Loss Position, Fair Value (Details) - USD ($)
$ in Millions
Mar. 31, 2025
Dec. 31, 2024
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Fair Value $ 110 $ 168
Unrealized Losses 0 0
Commercial paper    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Fair Value 18 13
Unrealized Losses 0 0
Corporate bonds    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Fair Value 14 33
Unrealized Losses 0 0
U.S. government agency securities    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Fair Value 0 7
Unrealized Losses 0 0
Treasury bonds    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Fair Value 55 102
Unrealized Losses 0 0
Asset-backed securities    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Fair Value 23 13
Unrealized Losses $ 0 $ 0
v3.25.1
Financial Instruments - Scheduled Maturities of Marketable Securities (Details)
$ in Millions
Mar. 31, 2025
USD ($)
Fair Value Disclosures [Abstract]  
Due within 1 year $ 210
Due after 1 year through 5 years 257
Due after 5 years and thereafter 17
Total marketable securities $ 484
v3.25.1
Financial Instruments - Schedule of Weighted Average Assumptions (Details) - Level 3 - Common Stock Warrants [Member]
Mar. 31, 2025
$ / shares
yr
Dec. 31, 2024
yr
$ / shares
Risk-free interest rate    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Warrants, measurement inputs 0.039 0.043
Contractual term (in years)    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Warrants, measurement inputs | yr 2 2
Expected volatility    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Warrants, measurement inputs 0.542 0.575
Expected dividend yield    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Warrants, measurement inputs 0 0
Exercise price per share    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Warrants, measurement inputs | $ / shares 17.50 17.50
v3.25.1
Financial Instruments - Schedule of Rollforward of Level 3 Inputs (Details) - Common Stock Warrants - Common Stock Warrant Liability
$ in Millions
 3 Months Ended
Mar. 31, 2025
USD ($)
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]  
Beginning balance $ 22
Change in fair value (3)
Ending balance $ 19
v3.25.1
Financial Instruments - Narrative (Details)
Mar. 31, 2025
shares
Common Stock Warrants | Class A and Class B Common Stock  
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]  
Maximum number of shares that could be issued (in shares) 1,000,000
v3.25.1
Loan Servicing Activities and Acquired Loans Receivable, Net - Schedule of Rollforward of Credit Losses (Details) - USD ($)
$ in Millions
 3 Months Ended
Mar. 31, 2025
Mar. 31, 2024
Off-Balance Sheet, Credit Loss, Liability [Roll Forward]    
Beginning balance $ 29 $ 29
Credit loss expense 16 11
Reductions due to loan purchases (12) (14)
Ending balance $ 33 $ 26
v3.25.1
Loan Servicing Activities and Acquired Loans Receivable, Net - Narrative (Details) - USD ($)
$ in Millions
Mar. 31, 2025
Dec. 31, 2024
Mar. 31, 2024
Guarantor Obligations [Line Items]      
Restricted cash $ 67 $ 59 $ 57
Non-contingent Stand-ready Liability      
Guarantor Obligations [Line Items]      
Guarantee liability $ 10 $ 10  
v3.25.1
Lessee Arrangements - Schedule of Components of Lease Expense (Details) - USD ($)
$ in Millions
 3 Months Ended
Mar. 31, 2025
Mar. 31, 2024
Leases [Abstract]    
Operating lease expense $ 2 $ 3
Variable lease expense 1 1
Total $ 3 $ 4
v3.25.1
Other Balance Sheet Information - Schedule of Accounts Receivable, net (Details) - USD ($)
$ in Millions
Mar. 31, 2025
Dec. 31, 2024
Mar. 31, 2024
Dec. 31, 2023
Organization, Consolidation and Presentation of Financial Statements [Abstract]        
Accounts receivable $ 96 $ 99    
Unbilled receivables 26 24    
Less: Allowance for credit losses (4) (8) $ (13) $ (11)
Accounts receivable, net $ 118 $ 115    
v3.25.1
Other Balance Sheet Information - Schedule of Allowance For Credit Losses (Details) - USD ($)
$ in Millions
 3 Months Ended
Mar. 31, 2025
Mar. 31, 2024
Accounts Receivable, Allowance for Credit Loss [Roll Forward]    
Beginning balance $ (8) $ (11)
Additions (4) (5)
Write offs 8 3
Ending balance $ (4) $ (13)
v3.25.1
Other Balance Sheet Information - Schedule of Other Current Assets (Details) - USD ($)
$ in Millions
Mar. 31, 2025
Dec. 31, 2024
Mar. 31, 2024
Organization, Consolidation and Presentation of Financial Statements [Abstract]      
Cash held on behalf of customers $ 187 $ 123 $ 136
Deferred contract acquisition costs, current (Note 6) 77 74  
Prepaid expenses 42 29  
Other 98 99  
Total other current assets $ 404 $ 325  
v3.25.1
Other Balance Sheet Information - Schedule of Accrued Expenses and Other Current Liabilities (Details) - USD ($)
$ in Millions
Mar. 31, 2025
Dec. 31, 2024
Organization, Consolidation and Presentation of Financial Statements [Abstract]    
Accrued transaction-based costs $ 332 $ 312
Customer funds obligation 187 123
Accrued expenses 70 69
Accrued payroll and bonus 58 126
Contingent liability for expected credit losses 33 29
Other liabilities 58 56
Total accrued expenses and other current liabilities $ 738 $ 715
v3.25.1
Revenue from Contracts with Customers - Schedule of Activity of Deferred Revenue (Details) - USD ($)
$ in Millions
 3 Months Ended
Mar. 31, 2025
Dec. 31, 2024
Revenue from Contract with Customer [Abstract]    
Deferred revenue $ 60 $ 63
Revenue recognized in the period from amounts included in deferred revenue at the beginning of period $ 42  
v3.25.1
Revenue from Contracts with Customers - Narrative (Details) - USD ($)
$ in Millions
 3 Months Ended
Mar. 31, 2025
Mar. 31, 2024
Dec. 31, 2024
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]      
Remaining performance obligation, amount $ 875    
Deferred contract acquisition costs 77   $ 74
Amortization of deferred contract acquisition costs 23 $ 19  
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2025-04-01      
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]      
Remaining performance obligation, amount $ 821    
Remaining performance obligation, period (in months) 24 months    
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2027-04-01      
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]      
Remaining performance obligation, period (in months)    
v3.25.1
Revenue from Contracts with Customers - Schedule of Capitalized Costs (Details) - USD ($)
$ in Millions
 3 Months Ended
Mar. 31, 2025
Mar. 31, 2024
Increase (Decrease) in Capitalized Contract Costs [Roll Forward]    
Beginning balance $ 172  
Capitalization 33  
Amortization (23) $ (19)
Ending balance $ 182  
v3.25.1
Stockholders’ Equity - Schedule of Stock-based Compensation (Details) - USD ($)
$ in Millions
 3 Months Ended
Mar. 31, 2025
Mar. 31, 2024
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]    
Stock-based compensation expense $ 60 $ 66
Cost of revenue    
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]    
Stock-based compensation expense 9 10
Sales and marketing    
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]    
Stock-based compensation expense 14 11
Research and development    
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]    
Stock-based compensation expense 20 18
General and administrative    
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]    
Stock-based compensation expense 14 17
Restructuring expenses    
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]    
Stock-based compensation expense $ 3 $ 10
v3.25.1
Stockholders’ Equity - Narrative (Details) - USD ($)
 3 Months Ended
Mar. 31, 2025
Mar. 31, 2024
Feb. 29, 2024
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Stock-based compensation included in capitalized software $ 2,000,000 $ 3,000,000  
Aggregate intrinsic value of options exercised 57,000,000    
Unrecognized stock-based compensation expense related to options $ 71,000,000    
Expected period for recognition (in years) 2 years 10 months 24 days    
Stock repurchase program, stock repurchased during period $ 17,000,000 $ 4,000,000  
Common Class A      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Stock repurchase program, authorized amount     $ 250,000,000
Stock repurchase program, stock repurchased during period 17,000,000    
Stock repurchase program, remaining authorized repurchase amount $ 177,000,000    
Restricted Stock Units (RSUs)      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Expected period for recognition (in years) 2 years 8 months 12 days    
Fair value of RSUs vested $ 109,000,000    
Total unrecognized stock-based compensation expense related to RSUs $ 383,000,000    
v3.25.1
Stockholders’ Equity - Schedule of Stock Option Activity (Details)
$ / shares in Units, shares in Millions, $ in Millions
 3 Months Ended
Mar. 31, 2025
USD ($)
$ / shares
shares
Number of Shares  
Beginning balance (in shares) | shares 28
Granted (in shares) | shares 2
Exercised (in shares) | shares (2)
Forfeited (in shares) | shares 0
Ending balance (in shares) | shares 28
Options vested and expected to vest (in shares) | shares 27
Weighted- Average Exercise Price  
Beginning balance (in dollars per share) | $ / shares $ 9.42
Granted (in dollars per share) | $ / shares 33.49
Exercised (in dollars per share) | $ / shares 8.76
Forfeited (in dollars per share) | $ / shares 16.09
Ending balance (in dollars per share) | $ / shares 10.94
Options vested and expected to vest, Weighted average exercise price (in dollars per share) | $ / shares $ 10.47
Weighted-Average Remaining Contractual Term  
Options vested and expected to vest (in years) 5 years 8 months 12 days
Aggregate Intrinsic Value  
Options vested and expected to vest | $ $ 605
v3.25.1
Stockholders’ Equity - Schedule of RSU Activity (Details) - Restricted Stock Units
shares in Millions
 3 Months Ended
Mar. 31, 2025
$ / shares
shares
RSU  
Beginning balance (in shares) | shares 22
Granted (in shares) | shares 4
Vested (in shares) | shares (3)
Forfeited (in shares) | shares (1)
Ending balance (in shares) | shares 22
Expected to vest (in shares) | shares 19
Weighted-Average Grant Date Fair Value  
Beginning balance (in dollars per share) | $ / shares $ 21.41
Granted (in dollars per share) | $ / shares 33.73
Vested (in dollars per share) | $ / shares 21.55
Forfeited (in dollars per share) | $ / shares 20.55
Ending balance (in dollars per share) | $ / shares 23.63
Expected to vest ( in dollars per share) | $ / shares $ 23.37
v3.25.1
Restructuring Plan (Details) - USD ($)
$ in Millions
 3 Months Ended
Mar. 31, 2025
Mar. 31, 2024
Restructuring Cost and Reserve [Line Items]    
Restructuring expenses $ 7 $ 41
The Restructuring Plan    
Restructuring Cost and Reserve [Line Items]    
Restructuring expenses   $ 41
One-time Termination Benefits | The Restructuring Plan    
Restructuring Cost and Reserve [Line Items]    
Restructuring expenses $ 7  
v3.25.1
Income Taxes (Details) - USD ($)
$ in Millions
 3 Months Ended
Mar. 31, 2025
Mar. 31, 2024
Income Tax Disclosure [Abstract]    
Effective income tax rate (as a percent) 2.60% (1.40%)
Income tax (expense) benefit $ 2 $ 1
v3.25.1
Net Income (Loss) Per Share Attributable to Common Stockholders - Narrative (Details)
Mar. 31, 2025
Earnings Per Share [Abstract]  
Common stock, conversion ratio 1
v3.25.1
Net Income (Loss) Per Share Attributable to Common Stockholders - Schedule of Net Income (Loss) Per Share Attributable to Common Stockholders (Details) - USD ($)
$ / shares in Units, shares in Millions, $ in Millions
 3 Months Ended
Mar. 31, 2025
Mar. 31, 2024
Numerator:    
Net income (loss), basic $ 56 $ (83)
Less: Gain on change in fair value of warrant liabilities 3 0
Net income (loss), diluted $ 53 $ (83)
Denominator:    
Weighted-average shares of common stock outstanding—basic (in shares) 575 547
Effect of dilutive securities:    
Dilutive common share equivalents included in dilutive shares (in shares) 28 0
Weighted-average shares of common stock outstanding—diluted (in shares) 603 547
Net income (loss) per share, basic (in dollars per share) $ 0.10 $ (0.15)
Net income (loss) per share, diluted (in dollars per share) $ 0.09 $ (0.15)
v3.25.1
Net Income (Loss) Per Share Attributable to Common Stockholders - Schedule of Antidilutive Shares (Details) - shares
shares in Millions
 3 Months Ended
Mar. 31, 2025
Mar. 31, 2024
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]    
Antidilutive shares excluded from computation of earnings per share (in shares) 2 82
Options to purchase Class A common stock and Class B common stock    
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]    
Antidilutive shares excluded from computation of earnings per share (in shares) 1 43
Unvested restricted stock units    
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]    
Antidilutive shares excluded from computation of earnings per share (in shares) 1 32
Warrants to purchase Class B common stock    
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]    
Antidilutive shares excluded from computation of earnings per share (in shares) 0 7
v3.25.1
Segment Information - Narrative (Details)
 3 Months Ended
Mar. 31, 2025
segment
Segment Reporting [Abstract]  
Number of reportable segment 1
v3.25.1
Segment Information - Schedule of Segment Reporting Information, by Segment (Details) - USD ($)
$ in Millions
 3 Months Ended
Mar. 31, 2025
Mar. 31, 2024
Segment Reporting Information [Line Items]    
Revenue $ 1,337 $ 1,075
Costs of revenue (991) (826)
Sales and marketing (133) (107)
Research and development (84) (83)
General and administrative (79) (74)
Net income (loss) 56 (83)
Reportable Segment    
Segment Reporting Information [Line Items]    
Revenue 1,337 1,075
Costs of revenue (980) (815)
Sales and marketing (117) (93)
Research and development (62) (63)
General and administrative (64) (56)
Stock-based compensation and related payroll taxes (64) (62)
Other items 6 (69)
Net income (loss) $ 56 $ (83)
v3.25.1
Commitment and Contingencies (Details)
$ in Millions
Mar. 31, 2025
USD ($)
Hardware Suppliers  
Unrecorded Unconditional Purchase Obligation [Line Items]  
Purchase commitment/contractual commitments $ 69
Cloud Service Providers And Other Vendors  
Unrecorded Unconditional Purchase Obligation [Line Items]  
Purchase commitment/contractual commitments 148
2026 31
Thereafter $ 117
v3.25.1
Subsequent Events (Details) - Line of Credit - USD ($)
May 06, 2025
Mar. 31, 2025
Mar. 02, 2023
Revolving Credit Facility | 2021 Credit Facility      
Subsequent Event [Line Items]      
Minimum liquidity amount     $ 250,000,000
Long term debt   $ 0  
Remaining borrowing capacity   326,000,000  
Maximum borrowing capacity   330,000,000  
Revolving Credit Facility | Restated Credit Agreement | Subsequent Event      
Subsequent Event [Line Items]      
Long term debt $ 0    
Remaining borrowing capacity 346,000,000    
Maximum borrowing capacity 350,000,000    
Letter of Credit | 2021 Credit Facility      
Subsequent Event [Line Items]      
Letters of credit outstanding   $ 4,000,000  
Letter of Credit | Restated Credit Agreement | Subsequent Event      
Subsequent Event [Line Items]      
Letters of credit outstanding 4,000,000    
Maximum borrowing capacity $ 75,000,000