Stephen Sheldon: Maybe I want to start with you, Aman. Want to get some more detail on the benchmarking analytics. How robust could those capabilities become? And how does this support even more differentiation for your platform relative to competing vendors? It seems like you’ve been a very favorable spot for buying benchmarking, given your size and scale. So how important could these capabilities be to your restaurant owners, operators? And is this a capability that they’ve been asking for?
Aman Narang: Yes. Thanks for the question, Stephen. They have been asking for it. I think at the scale that we’re at, we’ve got likely one of the best data sets in the restaurant industry. And so our team is thinking about what are ways in which we can apply to really add value for restaurants. And one of the use cases that, frankly, have come up for years at this point is how can you leverage this data to better understand things like, what are you seeing in terms of sales trends? What are you thinking in terms of inflation and price adjustments? What are you seeing in terms of what’s on the menu, pricing on the menu? And so there’s a whole host of use cases where our customers value understanding that data across their geographies, zip codes, nationally.
And so that’s really what’s driving that benchmarking initiative. And the early signs from our customers has been very positive. Again, it’s early so we’re still iterating on the product based upon customer feedback but it’s leveraging the data that we have.
Stephen Sheldon: Very helpful. And then maybe a quick follow-up for Elena on location growth. What’s your level of confidence now in being able to surpass 2023 net adds? Are you still on track for that, given the outperformance in the first quarter and what you’re seeing in the pipeline?
Elena Gomez: Yes. No, absolutely, Stephen. As Aman said, we had a strong start to Q1, and we’re seeing a lot of great momentum from the sales team on the ground. Q2 is typically seasonally stronger and we don’t see any reason why that will be different. Seen really good demand and the funnel is strong, so overall, we have no reason — we still believe that we’ll add more locations in 2024 than we did in 2023.
Operator: Your next question is from the line of Tim Chiodo with UBS.
Timothy Chiodo: I want to talk a little bit about the sales team. So you mentioned investing behind the upsell team, the international sales teams. I believe the last time that you formally disclosed the size of the overall sales and marketing organization was at the time of the IPO. It was about 730 people and a subset of that would have been the actual quota-carrying salespeople. Could you just give some directional color on how large that team may be now? How large the 730 might have grown to? Anything to give us some context on the overall size and breadth of the sales team?
Elena Gomez: Yes. So thanks, Tim, for the question. We’ve continued to add to the team, of course, since the IPO as you’ve seen as our locations grown. But keep in mind, this dynamic around flywheels allows us to grow ARR without adding reps. So we’re gaining that efficiency and productivity from our sales reps all the while, to the point you made, growing our upsell team, investing behind international and enterprise. So while I can’t give specificity at the highest level, we feel like we’re really balanced across both our new business team, our upsell team, and now these early investments in international. So overall, we’re managing the payback periods as we always do, and that’s how we’re thinking about surgically adding to our sales force over time.
Timothy Chiodo: Great. And if you don’t mind, just a brief numbers follow-up. The forward flow for Toast Capital, you mentioned a little bit of an impact for Q2. But just broadly speaking for the rest of the year, roughly what would that have been in terms of gross profit or recurring gross profit impact, i.e., would the recurring gross profit guide have been a point or two higher absent the forward flow change?
Elena Gomez: Yes, it’s early, Tim, so the impact in 2024 won’t be as meaningful as I would give you that context for the balance of the year.
Operator: Your next question is from the line of Jason Kupferberg with Bank of America.
Jason Kupferberg: Just wanted to follow up on the location adds. Obviously, you beat your first quarter guide there, I think, by about 10%. Was hoping you could talk about which segments of the end market drove the upside. And what is your specific expectation for Q2 net adds?
Aman Narang: Yes. Thanks, Jason. We had, as I mentioned earlier, the bulk of the growth came from our core business. Within our core business, we continue to see, as we get more markets with higher share, it’s driving our productivity. And our team’s focus is really getting more and more of our markets into this viable state so that we can keep on benefiting from the scale that we’re at. Seeing early good momentum within international and enterprise as well. And those teams, I’d say, are, compared to our SMB business, just early. So while there’s good momentum, you could zoom out and think about our core SMB business, we’ve been at this for a decade. And so these new businesses, while they’re contributing and over time, you should expect them to contribute more as a percentage, the bulk of the growth today is really still coming from our core SMB business.
Elena Gomez: Yes. And in terms of Q2, it’s seasonally higher, Jason, but nothing specific. But our momentum is strong.
Jason Kupferberg: Any update on just the percent of locations that are using 6 or more of the elective products? I know you’ve been giving that each quarter. And I think, if I recall, it kind of stabilized around the second half of last year. So just any updates on how that’s trending?
Aman Narang: Yes. Sure, Jason. I think that, that metric overall is just less relevant for us. We’ve added more and more products that now we’ve packaged up, as I mentioned, to these suites just because it’s simpler for our sales reps to sell, our customers to adopt. We added these good, better, best tiers where they can start with one version, take as an example, digital storefront suite, you can start with the version and then add advanced capabilities like websites and advanced versions of online ordering. And so really, the better metric now is adoption of suites at different levels. And of course, we’re tracking that with ARPU.
Operator: Your next question is from the line of Matt Coad with Autonomous.
Matthew Coad: I wanted to ask one more on capital. Curious, if we looked at it from a different perspective so not the dollars of gross profit but rather the dollars of contribution margin, so thinking gross profit less your reserve build, do you think this forward flow agreement will help you kind of like expand that contribution margin percentage and grow contribution margin going forward?
