#1Otoast Second Quarter 2022 Financial Results ANTRALLE PLEASE LEN 5|I (#2© 2022 Toast, Inc. All Rights Reserved. 2 Disclaimer This presentation includes certain "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995, including statements regarding the future results of operations, financial condition, business strategy, plans and objectives of management for future operations of Toast, Inc. ("Toast", "we" or "us"), statements regarding the expected results of the acquisition of Sling on our financial performance and the benefits of the Sling integration on our business and operations; the expectations of demand for Toast's products and growth of its business, our market opportunity and the potential growth of that market, our liquidity and capital needs and other similar matters. These forward- looking statements include, but are not limited to, plans, objectives, expectations and intentions and other statements contained in this presentation that are not historical facts and statements identified by words such as "may," ""will," "should," "expects," "anticipates," "intends," "plans," "could," "believes," "seeks," "estimates," "predicts," "potential," "continue," or words of similar meaning. These forward-looking statements reflect management's current expectations and assumptions about future events which are inherently subject to uncertainties, risks and changes in circumstances that are difficult to predict. Actual results may differ materially from those described in the forward-looking statements and will be affected by a variety of risks and factors that are beyond our control including, without limitation, risks associated with: our ability to successfully execute our business and growth strategy; our ability to attract new customers, retain revenue from existing customers and increase sales from both new and existing customers; the effect of uncertainties related to the COVID-19 pandemic on our business and the industry; our ability to maintain the security and availability of our platform; the competitive environment in which we operate; our ability to comply with modified or new laws and regulations applying to our business; the increased expenses associated with being a public company; the price volatility of our common stock; and other risks and uncertainties set forth under the caption "Risk Factors" and "Management's Discussion and Analysis of Financial Condition and Results of Operations" in our Annual Report on Form 10-K for the year ended December 31, 2021, our Quarterly Report on Form 10-Q for the three months ended June 30, 2022 to be filed, and our subsequent SEC filings. We assume no obligation to update any forward-looking statements contained in this document as a result of new information, future events or otherwise. This presentation contains statistical data, estimates and forecasts that are based on independent industry publications or other publicly available information, as well as other information based on our internal sources. This information involves many assumptions and limitations, and you are cautioned not to give undue weight to these estimates. We have not independently verified the accuracy or completeness of the data contained in these industry publications and other publicly available information. Accordingly, we make no representations as to the accuracy or completeness of that data nor do we undertake to update such date after the date of this presentation. All third-party brand names and logos appearing in this presentation are trademarks or registered trademarks of their respective holders. Any such appearance does not necessarily imply any affiliation with or endorsement of the Company. GAAP AND NON-GAAP RESULTS This presentation includes non-GAAP financial measures. These non-GAAP financial measures are in addition to, and not as a substitute for or superior to measures of financial performance prepared in accordance with GAAP. There are a number of limitations related to the use of these non-GAAP financial measures. For example, other companies may calculate similarly-titled non-GAAP financial measures differently. Refer to the Appendix and our Earnings Release for Q2 2022 for a reconciliation of these non-GAAP financial measures.#3© 2022 Toast, Inc. All Rights Reserved. 3 Our Mission To empower the restaurant community to delight their guests, do what they love, and thrive. H 12 OPENDO ELY#4© 2022 Toast, Inc. All Rights Reserved. 4 Investment Highlights Large and Growing TAM Purpose-built for restaurants, one of the largest vertical markets Differentiated Product Offering Cloud-based, all-in-one digital technology platform with integrated payment processing Proven Durable Growth at Scale Experiencing rapid growth at scale Healthy Unit Economics Differentiated and efficient go-to-market engine and customer success strategy 000 17#5© 2022 Toast, Inc. All Rights Reserved. 5 The Restaurant Industry Is One Of The Largest Industries In U.S. And Globally ¹ IBISWorld. 2 Euromonitor International Consumer Foodservice 2021, Foodservice Value RSP, YOY, ex rates, Current Prices, February 2021. 3 National Restaurant Association, 2022 State of the Restaurant Industry, February 2022. 4 U.S. Bureau of Labor Statistics, Industries at a Glance, Food Services and Drinking Places, Workforce Statistics, May 2022. 860K Locations in the US¹ 22M Locations Globally² ~$800B Annual U.S. Sales in 2021 (~3% of GDP)³ 11M+ Employees in the US4#6© 2022 Toast, Inc. All Rights Reserved. 6 Restaurants are Complex Businesses BANK- Integrated Payments Financial & Loans Banking Services Takeout Drive Thru 1st & 3rd Party Delivery Payroll & HR Benefits Scheduling Insurance Recruiting RESTAURANT Reporting & Analytics Accounting Waitlists Reservations 好好好好 Table Management Kitchen Operations Inventory Supplier Management 80-9 Point of Sale Kiosk Time Clock Mobile Ordering Scan to Pay Websites Marketing Loyalty Gift Cards#7© 2022 Toast, Inc. All Rights Reserved. 7 Better Together: We Benefit the Entire Restaurant Ecosystem Improved service quality Higher tips, better employee experience Improved wage & benefits access Lower turnover, improved operational efficiency Happy Employees Otoast Restaurant Success Happy Guests Memorable & tailored experiences Greater sales, Increased loyalty#8© 2022 Toast, Inc. All Rights Reserved. 8 The Toast Platform: Better Together Point of Sale Toast Go Toast Order & Pay Guest Kiosk Point of Sale Full Suite of Toast Products Continued Runway for Growth 3 Base Products Toast Hardware Restaurant Operations Kitchen Display System Multi-Location Management xtraCHEF by Toast Inventory Management 15+ Elective Products Digital Ordering & Delivery Online Ordering & Toast TakeOut Toast Delivery Services Toast Delivery Partners Marketing & Loyalty Email Marketing Gift Cards Loyalty Team Management Toast Payroll Payment Processing Scheduling (Sling by Toast) Tips Manager Toast Pay Card & PayOut Partner-Enabled Products (Insurance & Benefits) Fintech Products Toast Capital Customer Financing Platform & Insights Reporting & Analytics Toast Partner Connect & APIs#9© 2022 Toast, Inc. All Rights Reserved. Acquisition of Sling Strengthens Our Team Management Product Suite Scheduling adds a high engagement product to complement our Team Management suite... Deepen relationship with restaurant employees with a high engagement product used ~4x per day¹ Drives optimal staffing More efficiently build schedules and manage labor ...and will help drive our business objectives Increase payroll adoption and contribute to win rates Deliver a more complete team management suite of products Adds a direct touchpoint with restaurant employees Team Management Suite Toast Payroll Payroll and Tax Filing Purpose SLING Scheduling and Employee Communications by Toast Toast Pay Card & PayOut Faster Access to Pay After Every Shift Tips Manager Automated Tip Pooling with Payroll HR Personalized, Restaurant- focused Resources ¹Based on historical Sling internal data between April and July 2022. Measured by the average number of times per day that a restaurant employee user opens the Sling application. Toast Pay Cards are issued by Sutton Bank, Member FDIC, pursuant to license by Mastercard. Mastercard is a registered trademark, and the circles design is a trademark of Mastercard. *Terms and conditions apply. See www.toasttab.com/pay-card for details.#10© 2022 Toast, Inc. All Rights Reserved. 10 This Is Just The Beginning For Toast Massive TAM $110B+ Global TAM $55B US TAM $15B SAM¹ $0.8B Q2 2022 ARR Sources: U.S. Bureau of Labor Statistics, IBISWorld, National Restaurant Association (2021 State of the Restaurant Industry), Freedonia Group. Note: Global TAM estimate is based on an estimated 22 million restaurant locations globally with greater than $2.6 trillion in revenue (Euromonitor International Consumer Foodservice 2021- Foodservice Value RSP, YOY ex rates, Current Prices). U.S. TAM (Total Addressable Market) estimate reflects the expected U.S. restaurant spend on technology in 2024. ¹ SAM (Serviceable Addressable Market) calculated as of S-1 filing. Payments addressable market estimated by multiplying the estimated non-cash restaurant sales for 2021 by the company's then average take rate of 55 basis points measured as a percentage of GPV. Toast Capital market opportunity is estimated by multiplying an estimated $29.5B of outstanding U.S. pubic bank's restaurant loans as of March 31, 2020 (S&P Global Market Intelligence, US Banks Disclose Exposure to Restaurant Industry Hard-Hit by COVID-19, May 2020), by the average annual rate on small business loans of 1.4% to 7.2% (Federal Reserve Bank of Kansas City, Small Business Lending Survey, June 2021). Business Lending Survey). All subscription services opportunity estimated by multiplying the average annual subscription revenue per location per product by the estimated number of restaurant locations in the U.S.#11© 2022 Toast, Inc. All Rights Reserved. 11 Our Differentiated Go-To-Market Strategy ● ● ● Hyper-localized go-to-market motion Focus on building strong customer communities Improving sales productivity from increasing category position Strong network effect that accelerates growth Approx. 2/3rd of new locations come through inbound channels Approx. 1/5th of new locations come from other restaurant / partner referrals Note: New locations from inbound channels include those booked through organic, paid, field and referral channels, as of LTM (Last Twelve Months) Q2-22.#12Second Quarter Financial Results © 2022 Toast, Inc. All Rights Reser ed. |||||| (E#13© 2022 Toast, Inc. All Rights Reserved. 13 Integrated Software and Payments Model Recurring Subscription Services Hardware Financial Technology One-Time Solutions 655 Professional Services#14© 2022 Toast, Inc. All Rights Reserved. 14 Rapid and Sustainable Growth at Scale ($M) Recurring Y/Y Growth Total Revenue: Subscription Revenue: FinTech Gross Profit: $426 Q2-21 193% 65% 174% $486 Total Revenue Q3-21 105% 70% 83% Note: % YoY grow th may not tie due to rounding. $512 Q4-21 111% 86% 82% $535 Q1-22 90% 103% 65% $675 Q2-22 58% 100% 53% Subscription Services Revenue Financial Technology Solutions Gross Profit Financial Technology Solutions COGS Hardware Revenue Professional Services Revenue Annualized Recurring Run- Rate (ARR) 655 Subscription ARR Payments ARR $787M as of 6/30/2022#15© 2022 Toast, Inc. All Rights Reserved. 15 ARR, our Core Operational Metric, Also Scaling Rapidly % YoY Growth: $494 Q2-21 118% Annualized Recurring Run-Rate (ARR) ($M) $544 Q3-21 76% Note: % YoY grow th may not tie due to rounding. See Appendix for definition of ARR. $568 Q4-21 74% $637 Q1-22 66% $787 Q2-22 59% Subscription Fin Tech Locations * ARPU oc#16© 2022 Toast, Inc. All Rights Reserved. 16 New Location Adds Accelerate to Another Quarterly Record 48k Q2-21 52k Q3-21 57k Q4-21 Net New Locations 62k Q1-22 -Total Locations 68k >6,000 for the first quarter ever Q2-22 Subscription Fin Tech Locations x ARPU ♡#17© 2022 Toast, Inc. All Rights Reserved. 17 % YoY Growth: Strong GPV and Subscription ARPU Growth $14.4 Q2-21 267% Gross Payment Volume ($B) $16.5 Q3-21 123% $17.1 Q4-21 125% $17.8 Q1-22 98% $23.3 Q2-22 62% 44% % of Locations Using 4+ Elective Products¹ 46% 48% 51% 55% 57% Subscription 59% Fin Tech 655 60% 1 Analysis considers products attached on top of core POS and payment processing. Does not include the full impact of Sling (acquired July 22), xtra CHEF (acquired June 21), and certain other early stage products. Locations * ARPU 61% Q2-20 Q3-20 Q4-20 Q1-21 Q2-21 Q3-21 Q4-21 Q1-22 Q2-22 į dė#18Ⓒ2022 Toast, Inc. All Rights Reserved. 18 Rapid Gross Profit Expansion Recurring (Subscription + Payments) $0 One-Time (Hardware + Prof. Services) Total Non-GAAP Gross Profit: % YoY Growth: $101 ($8) Q2-21 $94 185% Total Non-GAAP Gross Profit ($M) $109 ($17) Q3-21 $92 74% $116 ($34) Q4-21 $82 52% $134 ($33) Q1-22 $101 38% $169 ($45) Q2-22 $125 33% Note: % YoY growth may not tie due to rounding. Recurring includes subscription services revenue and financial technology solutions gross profit. One-time includes hardware and professional services gross loss. Please refer to the Appendix of this presentation and our Eamings Release for Q2 2022 for reconciliation of Non-GAAP Gross Profit. Attractive gross margin from recurring revenue#19© 2022 Toast, Inc. All Rights Reserved. 19 Positioned to Increase S&M Efficiency Following Recent Investments Investment in Sales Team Takes Time to Scale: Tenure and productivity are correlated, and both positioned to increase going forward with our sales team scaled up and set to grow at steady-state rate going forward. Investing to Build More Flywheel Markets: Efficiency and productivity in less developed territories improves over time as market penetration increases. WIL L Q1-19 Q2-19 Q3-19 Q4-19 Q1-20 Rep Median Tenure (Mos.) Q2-20 Q3-20 Q4-20 Q1-21 Q4-21 Rep Productivity¹ Q1-22 Q2-22 Sales Rep Productivity Avg Rep Tenure (Mos.) ¹Sales Rep Productivity represents the average number of locations booked per ramped ('quota-carrying') rep per month. ²Territory Customer Density defined as Toast locations as of the end of Q2 2022 relative to SMB restaurant locations in a defined territory. <10% 14 10-20% Territory Customer Density² 17 >20% 23#20© 2022 Toast, Inc. All Rights Reserved. 20 R&D Investments Position Team to Support Continued Scale and Growth Research & Development Expense (Non-GAAP basis) as a % of Recurring Revenue Accelerated investment to rebuild and scale team amid significant growth Q1-19 Q2-19 Q3-19 Q4-19 Q1-20 Q2-20 Q3-20 Q4-20 Q1-21 Q2-21 Q3-21 Q4-21 Q1-22 Q2-22 2020 vs. 2022 SaaS and Total ARR: >200% Locations: >100% Efficiently invest in R&D to drive continued location and ARPU growth going forward Note: Recurring revenue includes subscription services revenue plus financial technology solutions gross profit. Please refer to our Earings Release for Q2 2022 for the definition of Non-GAAP Research and Development Expense.#21© 2022 Toast, Inc. All Rights Reserved. 21 Balanced R&D Investment Prioritizing Scale and Durable Growth Breakdown of 1H22 Research & Development Expense (Non-GAAP basis) Emerging Initiatives Internal Systems Core Products & Platform R&D Investment Framework Core Products & Platform (Majority of ARR) New and existing products in the fintech and core restaurant operations areas, including products targeted for guests Platform scale and stability, and platform services such as reporting and analytics Emerging Areas (Each represent less than 5% of ARR) Products with initial traction that have meaningful near-term growth potential (Example: Team Management & Payroll) Products and offerings to expand our ARPU and location growth potential over medium-term (Example: International expansion) Internal Systems Internal IT systems to support business#22Appendix © 2022 Toast, Inc. All Rights Reserved. nu HE OPEN Å#23© 2022 Toast, Inc. All Rights Reserved. 23 Defining Key Terms Gross Payment Volume (GPV) Sum of total dollars processed through the Toast payments platform across all restaurant locations in a given period ● Annualized Recurring Run-Rate (ARR) Sum of twelve times the subscription component of MRR and four times the trailing-three-month cumulative payments component of MRR Adjusted EBITDA Net income (loss), adjusted to exclude the following items, as applicable: Stock-based compensation expense and related payroll tax expense Depreciation and amortization expense ● ● ● ● ● ● ● Interest income (expense), net Other income (expense), net ● Acquisition-related expenses Fair value adjustments on warrant and derivative liabilities Expenses related to early termination of leases Loss on debt extinguishment Charitable contribution stock-based expense Income taxes Free Cash Flow Calculated as net cash provided by (used in) operating activities reduced by purchases of property and equipment and capitalization of internal-use software costs#24© 2022 Toast, Inc. All Rights Reserved. 24 Quarterly Gross Profit GAAP to Non-GAAP Reconciliation $M Gross Profit Stock-based compensation expense and related payroll tax Depreciation and amortization Non-GAAP gross profit Note: Numbers may not tie due to rounding. 3 Months Ended Jun-2021 Sep-2021 Dec-2021 Mar-2022 Jun-2022 $89 $113 8 8 4 4 $101 $125 $89 1 4 $94 $83 5 4 $92 $73 6 3 $82#25© 2022 Toast, Inc. All Rights Reserved. 25 Quarterly Adj. EBITDA GAAP to Non-GAAP Reconciliation $M Net (loss) income Stock-based compensation expense and related payroll tax Depreciation and amortization Interest income / expense Other (income) expense, net Acquisition-related expenses Change in fair value of warrant liability Change in fair value of derivative liability Termination of leases Loss on debt extinguishment Charitable contribution stock-based expense Income tax benefit Adjusted EBITDA Note: Numbers may not tie due to rounding. 3 Months Ended Jun-2021 Sep-2021 Dec-2021 Mar-2022 Jun-2022 $(135) $(254) 56 36 5 7 6 1 1 5 27 50 (4) $11 198 1 $(11) $2 46 LO 5 (118) 19 1 $(45) $(23) 53 6 L (79) I (2) $(45) $(54) 59 6 (1) 1 (44) I $(33)#26© 2022 Toast, Inc. All Rights Reserved. 26 Quarterly Free Cash Flow GAAP to Non-GAAP Reconciliation $M Net cash provided by (used in) operating activities Purchases of property and equipment Capitalized software Free cash flow Note: Numbers may not tie due to rounding. 3 Months Ended Jun-2021 Sep-2021 Dec-2021 Mar-2022 Jun-2022 $57 $(17) $(32) $(47) $(21) (2) (1) (2) (5) (2) (1) (1) (4) $(21) $(34) $(50) $(30) (2) (2) $53