Good afternoon. My name is Sarah, and I will be your conference operator today. At this time, I would like to welcome everyone to Toast's fourth quarter and full year 2024 earnings conference call. Today's call will be 45 minutes. I'll now turn the call over to Michael Senno, Senior Vice President of Finance. You may begin your conference.
Thank you, Sarah. Welcome to Toast's earnings conference call for the fourth quarter and full year ended December 31st, 2024. On today's call, our CEO and co-founder, Aman Narang, and CFO, Elena Gomez, will open with prepared remarks, which will be followed by our Q&A session. Before we start, I'd like to draw your attention to the Safe Harbor statement included in today's press release. During this call, we'll make statements related to our business that may be considered forward-looking within the meaning of the Securities Act and the Exchange Act. All statements other than statements of historical facts are forward-looking statements, including those regarding management's expectations of future financial and operational performance and operational expenditures, location growth, future profitability and margin outlook, business and investment strategy, expected growth and business outlook, including our financial guidance for the first quarter and full year 2025.
Forward-looking statements reflect our views only as of today, and except as required by law, we undertake no obligation to update or revise these forward-looking statements. Please refer to the cautionary language in today's press release and our SEC filings for a discussion of the risks and uncertainty that could cause actual results to differ materially from our expectations. During this call, we will discuss certain non-GAAP financial measures, including but not limited to non-GAAP subscription services gross profit and non-GAAP financial technology solutions gross profit, which we refer to collectively as our recurring gross profit streams. These are the basis for our top line guidance. These non-GAAP measures are not intended to be a substitute for our GAAP results. Please refer to our earnings release and SEC filings for detailed reconciliations of these non-GAAP measures to the most comparable GAAP measures.
Unless otherwise stated, all references on this call to cost of revenue, gross profit and gross margin, sales and marketing expense, research and development expense, and general and administrative expense are on a non-GAAP basis. Finally, the press release can be found on the Investor Relations website at investors.toasttab.com. After the call, a replay will be available on our website. And with that, let me turn the call over to Aman.
Thanks, Michael, and thank you, everybody, for joining us this afternoon. 2024 was a great year for Toast. We added a record 28,000 net locations. Our current gross profit streams grew 34% year-over-year. Adjusted EBITDA grew to $373 million, and we were GAAP profitable for the first time in the history of the business. I'm really proud of our team, and I'm confident that we're well positioned for a great 2025. Our mission at Toast is to help restaurants delight their guests, do what they love, and thrive. From day one, our vertical strategy has served us well by focusing on solving the needs of restaurants better than anybody else in the world. This has allowed us to deepen our market share and establish a leadership position across SMB and mid-market restaurants here in the U.S.
More recently, we've also started to expand our addressable market into new customer segments, new geographies, and new verticals. In 2024, our enterprise team had their best year yet, with marquee wins including Potbelly, Perkins, and Hilton Hotels. We continue to drive strong growth across our initial international markets, and our team in food and beverage retail demonstrated in 2024 that we should invest more to grow even faster in 2025. Over the next decade, we have the opportunity to serve many multiples of our 134,000 customer locations today. Not only can we grow market share and scale locations in our core U.S. restaurant segment, we can continue to expand our TAM by building out the platform to support new geographies and new verticals across complex higher GPV merchants where we have a right to win.
Our strategy remains consistent with what we shared recently at our investor day, but we have refreshed our priorities to reflect what is most critical in 2025. First, penetration and market share in our core U.S. restaurant business. Second, demonstrating that our new markets can be material drivers of growth. Third, increasing customer adoption of our broad platform and driving differentiation through data and AI. And lastly, continue to hold a high bar and invest against our most important priorities while gradually expanding margins. All right, so let's begin. First, scaling locations and market share in our core U.S. restaurant business. Despite our strong growth, at just 15% market share in the U.S. restaurant market, we have tremendous headroom to scale. In 2024, we increased market share and location count in all of our top 100 markets in the SMB segment.
Our most penetrated markets continue to see strong growth, which gives us confidence that our flywheel strategy is working, and we have the opportunity to scale market share in the years ahead. In 2025, we plan to surgically increase sales and marketing investments in our core business, including brand investments to increase awareness and consideration. As an example, we recently launched our It's the Little Things campaign that highlights how much the small details matter in hospitality and can be the difference between an incredible guest experience versus just an average one. This campaign showcased the breadth and depth of our vertically integrated restaurant platform, a reason why more than a third of all James Beard Award winners and over half of all Michelin star-rated U.S. restaurants run their businesses on Toast.
One of these Michelin stars belongs to Reverie, a fine dining restaurant in Washington, D.C., that has seen significant time and cost savings with Toast. Toast Payroll has cut the time it takes with their small team to do payroll from three hours down to one, and because it's integrated directly into Toast, it's also more accurate. They also use xtraCHEF to save time in inventory and identify when they're overpaying for ingredients, like when they decided to pull lobster from their menu recently after seeing the prices of lobster skyrocket. Without this data on their fingertips, their menu costs would have been over budget. Toast frees up the Reverie team and gets them out of the back office so that they can focus on what they do best, delivering an award-winning tasting menu and a great guest experience.