Shares of cloud-based restaurant management software company Toast (TOST) plunged Wednesday after comments at its investor day event.
The company's shares are down 7.55% at $23.52 as of 11:18 a.m. ET. However, they fell to a low of $22.95 earlier in the session. Toast shares have gained more than 30% so far this year.
Wednesday's share price decline is the company's largest since November 8.
Triggering today's move, the company said at its investor day that it intends to achieve its adjusted EBITDA margin target in two to three years.
The company sees its adjusted EBITDA as a percentage of recurring gross profit streams from 30% to 35% in two to three years, and 40%+ in the long term.
In addition, it sees at least 20% annual growth for recurring gross profit streams in the mid-term.
Earlier this month, in its Q1 earnings release, Toast said it saw second-quarter adjusted EBITDA in the range of $55 million to $65 million and full year. It lifted its full-year adjusted EBITDA to between $250 million and $270 million, up from $200 million to $220 million.