On Thursday, class A shares of Toast (NYSE:TOST) took investors on a rollercoaster ride. The day began on a sour note, with shares sliding sharply amidst news of a substantial workforce reduction. However, defying expectations, the stock managed to turn the tide, gaining nearly 5% after hours, driven by the company’s quarterly results that held promise amidst the restructuring turmoil.

Just two hours before the closing bell, Toast’s class A shares had faced a steep decline prompted by a Bloomberg report on an imminent layoff affecting 550 workers. Closing 4.6% lower at $19.23, the stock painted a bleak picture. However, the tide turned after hours, with the stock surging back into positive territory once the company’s Q4 2023 results were announced, at one point rising as much as 21.4%.

Toast’s Q4 performance proved to be a mixed bag. While the company posted a quarterly loss per share of 7 cents on revenue of $1B, surpassing analysts’ revenue expectations, this seemed to overshadow the disappointment of not meeting the anticipated loss of 1 cent per share. The news was not all bad, with Toast’s quarterly net loss narrowing to $36M from a loss of $99M in Q4 2022. Additionally, the company delivered its third straight quarter of adjusted EBITDA profitability, earning $29M compared to an adjusted EBITDA loss of $18M a year ago.

Looking beyond the quarterly results, it becomes clear that Toast, which provides software services to restaurants, has managed to keep a steady foothold in the market. Its annualized recurring run-rate was $1.2B at the end of the quarter, marking a 35% year-over-year increase. Quarterly gross payment volume saw a 32% increase to $33.7B, while the total number of locations served rose by 34% to about 106K.

Founded in Boston, Mass., Toast has been on an upward trajectory since its New York Stock Exchange debut in September 2021, securing a valuation of nearly $33B. At the time, demand for cloud kitchens and related services was at its peak amidst the COVID-19 pandemic, propelling the company to newfound success.

While Toast’s performance and valuations have paved its way to success, the recent restructuring plan has put a dent in its operations by approving a reduction in force affecting approximately 550 employees. Nevertheless, the company remains resolute in its plan, expecting to incur charges of about $45M to $55M as part of the restructuring by the end of 2024.

In a bid to reassure investors, Toast also announced a new share buyback program of up to $250M in class A common stock, a move intended to instill confidence in its value amidst the recent uncertainties.

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