All right, thanks, everybody, for joining. Feel free to have a seat. My name is Tianjun Huang. I follow the payments and IT services sector at JPMorgan. Super excited to have Toast and Aman Narang here, CEO, co-founder. I've gathered a lot of great questions from all of you. I'm hoping to get through all of them. I was just telling Aman, straight up, I'll share it with you. High respect to the company, to him, and the leadership that he's put in to drive the mission of Toast and all the work we do following payments and thinking about point-of-sale software and systems and verticalizing. I mean, Toast has checked all the boxes and done really well. Hats off to you, Aman, for doing that. Thank you for the time.
Of course. Thank you. Thanks for having us.
Yeah.
It's been a nice, easy commute here.
I was just going to say, I think the commute's kind of easy. I think maybe you could even walk here.
Absolutely.
Before we get into the questions, I thought we'd ask, I think I've asked your peers and Chris in the past this question. Sort of your favorite local restaurant in Boston. Always looking for good recs, sort of a Toast restaurant. I don't know if you're allowed to say that, but had to ask you before we get into it.
It has to be a Toast restaurant.
Yeah.
I've been in Boston for 25 years now. The restaurants here in Boston have really changed. I'm trying to think. There are so many. It's hard to pick. I like near Harvard Square. I like Pammy's a lot. If you like small plates, they do a great job. In Somerville, there's a place called Sarma. If you like Mediterranean, it's a great spot. In the Seaport, I like Bar Mitsanna, which is one of our very early customers. In fact, the guy who runs Bar Mitsanna, he's got four or five restaurants now. He was the Chief Operating Officer of Barber Lynch Group. He's actually a big part of why we started Toast, because we were trying to figure out whether we should build a business in restaurants.
We met with him and his team and got a lot of ideas and initial product from him.
Yeah.
I keep going. There's like 20 more.
No, that's good. It is noted. Always looking to try different spots. I'm tired of the same old spots, Aman. It's good to have that. Let's start with sort of you're always talking to restaurants. You're on the ground. You're seeing a lot of the trends as they emerge. I had written down here that you've grown your share from 10% to 15% in the last two years. Where is the next in the next three to five? Where do you think that share is going to come from? I know you just updated us on results last week, and you talked about record ads in the second quarter. Maybe you can touch upon that and sort of the bigger picture of the next three to five. Where do you see the share coming from?
I think so this is in restaurants, right? You talked about 10%-15% in the U.S. in restaurants.
Yeah.
One of the things that was really encouraging was if you look at the stat this year, we always talk about getting markets into flywheel. The idea is the more share you have, the more visibility you have, the easier it is to get additional restaurateurs to consider Toast, because so much of it is based upon social proof, where the best sales pitch is not me going in and pitching Toast, but actually taking someone to a restaurant nearby and saying, talk to the owner about what Toast can do for you. And so w e have talked about how important it is to get more and more restaurants into flywheel. We are seeing that. We are seeing more markets enter flywheel. We are seeing our flywheel markets continue to have above-average productivity. These are markets with over 20% share.
We think they're predictors of what's going to happen for the rest of the markets. There's also a lot of energy on looking at markets that are not in flywheel to say, why not? What are the things that we can do on the sales strategy side to continue to drive more penetration? I think a lot of the effort and the focus, like one of the positive things we've seen this year is year- over- year, we saw AE productivity in terms of locations up, which we're really proud of, because at our scale, to be able to get productivity up, that's what gave us the conviction to talk about the rest of the year and Q2. I think that speaks to, obviously, our execution on the ground.
It speaks to our product, because in our core business, if you look at what has gotten us here, it's this maniacal focus on restaurants. There was, in fact, a lot of questions about, is that the right strategy? Should you go horizontal and do more than restaurants? For a decade, when we only recently launched retail two years ago. We said, no, we're going to just focus on restaurants and make sure we solve for restaurants better than anybody else. That mindset continues in the R&D team, which is like, what are the ways in which AI can help restaurants? What are the ways in which we can innovate to continue to increase the value proposition and improve the value proposition, just like we have with things like our Handheld, or we were the first ones to launch a cloud all in one that was purpose-built.
I think those things are fundamentally, that's the most important driver is the product and the value proposition for customers. And then enterprise, that's another big part of our growth story longer term, where two or three years ago, we didn't really have a lot of penetration. Now, starting to see some good success. We announced Applebee's and Topgolf recently. I think that's another area where our penetration, it's about 200,000 locations, is low. We think that over time, there is lots of opportunity there.
In terms of the productivity being higher, Aman, thinking about the second quarter record ads, can you be a little bit more specific? Where are you seeing some of that growth come in a little bit above? Is it more in the core? Is it some of the new?
Yeah. So specifically the productivity, I mean the productivity in the core. As we set the plan this year, we wanted our core U.S. restaurant team to really focus in on restaurants. That's why we split out the retail team. I think it's been overall had really positive effects. In our core, we've seen productivity be above last year. In some of these new segments, retail and international and enterprise, we're actually ahead of plans. That's positive as well. I think splitting up the team was a good call.
Yeah. I did want to talk about that later. But just thinking about the macro side, I get that question so much. I'm sure you're going to get it all day today, too. What signals do you see? What are you paying attention to? How healthy are restaurants?
Yeah, it's a good question. I mean, certainly, the one thing that we, we do a nice job of really tracking all of the data. Our sales team is very data-driven. We, as a leadership team, get a weekly update that goes pretty deep on not just some of the output, but some of the input metrics that drive our business. We are looking at all the things you can expect. We are looking at same-store sales. We are looking at new openings. We are looking at conversion win rate. We are looking at churn. We are looking at capital defaults. All the metrics that matter to our business to understand what's going on. We have also studied, you know, historically what has happened to restaurants.
If you go look in, not that now is comparable necessarily, but you go look at 2008, you look at 2001, and you can, start, you can get some perspective on at least the data I've looked at says that retail sales were down maybe like 10% or so, with restaurants as low single digits, even in those tough times. That's the other thing that gives us confidence that if you expect history to repeat itself, even if there was a slowdown, I think that's what gives us confidence that we can manage through it. So far, if you look at where we are through the balance of the year, we haven't seen anything material in the business in terms of our input metrics that we're tracking, whether it's all these metrics I talked about, like this productivity, GPV, all that is in line with our expectations.
Now, as we've shared, it was down year over year, like low single digits. You look at this COVID boom that happened, I think there's some post-COVID, there's a bit of a normalization that's happening. I think it's normalized. It's not like you're seeing this or this. You're seeing it went up, and then there's a couple of points of it was lower. And thats, we've seen that in narrow band. Like every, once we saw that dip, it's just been in the same range.
Yeah. You've seen that for quite some time. That's not necessarily new. Okay. No, that's great to hear. Look, you guys have been winning a lot of shares. I think that's always helped. That stayed on. But before we get into the selling side of it, just to the extent that the macro does pressure the top line, Aman, I'm just curious your commitment to protecting the bottom line and profitability. You've overperformed on some of your margin targets in general. Tell us, how much discretion do you have to protect the bottom line a nd what's non-negotiable for Toast?
Yeah, Tianjun, it's a good question. I think one of the things that we are doing a good job of is making sure that we have clarity and alignment as a leadership team on where we want to be three, five, ten years from now, and making sure that our capital allocation is aligned with that in terms of where we're investing, what we're tracking. You've heard us talk about the TAM expansion in a material way. You've heard us talk about AI and some of the things we're trying to do there. And sp we want to be balanced about making sure that our long-term investments are not compromised. We use like if you've heard of this book, Zone To Win. We try to use a horizons framework in terms of how we invest in the business.
The horizon one businesses, like this core restaurant SMB business, you think of horizon two businesses like our international business, our retail business, enterprise. Then horizon three is things like our consumer efforts, AI efforts, and such. If there was a slowdown, I think we would certainly make sure we'd go back and look at and make sure everything we're investing in is above the fold. If there's any discretionary spend areas that we can cut, we'll look at that. We also have in our guidance, I think we've factored in to make sure that we can absorb some of that as well. I think Elena and the team and I, I think we feel confident. We've studied, as I said, previous recessions in terms of what happens. That gives us, I think we're pretty confident that we can manage through it.
And we don' t want to compromise against what is most important to drive long-term growth and long-term scale in the business.
How about competitively? We're hearing all these updates from your peers. We cover several of them. I think they're trying to narrow the product gap versus Toast within restaurant, food, and bev. Are you seeing any change there, especially on the pricing side? Is there pricing discipline across the group? I'll stop there and then have a follow-up.
Yeah. I think even before you look at competition, there's a lot of work that our team can do to actually continue to get better and better in terms of how we use pricing as a tool. Our sales team has a lot of autonomy now, and more so I think than they've had in the past, in terms of looking at all the variables. You think about any deal, there's upfront sales and marketing CAC, hardware, services. Then there's the recurring fees around software and payments. I think we're doing a better job of managing across those variables to optimize what is best for Toast. I think we've done a better job than we have in the past. That continues to be a focus area for our go-to-market team, as opposed to looking at these variables in isolation. And so, I think that's been positive.
I think our pricing muscle continues to get better, whether it's for new business or existing customers. And then, I think the market is always, I remember when we started this business, and it was like it was hard to raise capital. The feedback was, hey, this market's really competitive. There's lots of players. How are you going to stand out? We just walked in. I remember we were walking in a bunch of restaurants around here, right around here, Harvard Square and Cambridge. You walk in, and they were all using a lot of these legacy solutions. The reason cloud hadn't taken off, this is in 2013, was because solving for the needs of this vertical had a lot of complexity to do it well. I think that focus is what allowed us to be successful.
As the market evolves, and I think people continue to invest within the restaurant sector, our job, our R&D team's job is to continue and my job is to continue to invest to make the platform better and better. We track, as a North Star metric, our win rate. That's one of the most important metrics that we track, in addition to things like ARPU, to understand whether or not the product roadmap in our core business and all the investments we're making is translating into outcomes for our go-to-market team. Of course, more importantly, our customers. Things like NPS, things like attach rates of our products, that's the other variable that we track very closely. We're doing a lot, for example, in AI now, we're doing a lot to continue to invest in the platform to add more value.
Those things, I think, have allowed us to continue to have really strong win rates and productivity. If you look at our long-winded way to say, if you look at where we are relative to where we were two or three years ago, if anything, our win rates have gotten better in this market. We win a majority of the time when we're in a competitive cycle.
All right. Good. Let's do enterprise really quick. That was a popular question from investors. You did announce Applebee's, Topgolf as well. Curious, tell us, what have you learned from these wins? Why did they choose Toast? Remind us of the implementation timeline for these two.
Yeah. We had talked about launching an enterprise business pre-COVID in 2019. When COVID hit, we said we need to focus. We got our focus back within the SMB. Really, just I think it was maybe two or three years ago, two and a half years ago, we said, it's time to launch back in upmarket and enterprise. That required, as we've shared with many of you, the biggest gap was really building out the above-store capabilities to support these larger chains. We've had success in multi-units for a long time, but not the larger chains. We invested in really above-store management of menus and config. There's a bunch of work on our API architecture, on security and compliance, and all the things that enterprise groups need. I think that's really what is starting to pay off.
If you look at some of the wins we've had over the past year, year and a half, it's Marriott, MTY, Choice Hotels, Hilton, Pop Belly, Perkins, Applebee's, Topgolf. There's a bunch of others as well. I think it's a testament to the product team's execution and a commitment to say, we can solve for the needs of larger chains as well. What we hear typically from a lot of these groups is you'll see pull from franchisees. Because if you're a franchisee or you've seen Toast in the SMB environment, typically a natural question, if, let's say, I'm a franchisee, is you're going to go talk to the servers to say, hey, how do you like Toast? Does it help you be more efficient? Does it help productivity? Does it help you with tips?
One of the things that's been really positive for Toast, and this was actually a big headwind early on, was the restaurant communities and the servers and the kitchen staff that work in restaurants know Toast really well and like Toast and, in fact, help drive our flywheel. That often is something in our favor where a lot of the staff that work even in the enterprise chains know and are familiar with Toast and like Toast. The franchisees will bring it up in that context. Then it's about, can we support them for the things beyond the four walls of a restaurant? And we still have work to do. It's good to see that we've made progress, but we still don't have, we haven't fully built out our drive-through capability.
We think there is an opportunity in the next couple of years with Voice AI, where at least what I'm seeing is the technology is starting to get there. And so there is this unique window, I think, over the next two or three years where you can leapfrog what's out there in terms of building out not just what it takes to power a drive-through, but leveraging more some of the AI technology. I've seen examples, by the way, where picking up a phone, maybe not in drive-through quite yet, but picking up a phone, it works remarkably well. If you're a restaurant and you want to pick up your phone, you can start to leverage AI now.
It will do a nice job of ordering online, booking a table, all these hours, all the things that you call a restaurant for. We're not that far off because there's not a lot of ambient noise when you call. We're getting there for that. The question is, what else could you do with it? One of the use cases, obviously, big one is drive-through. Another one is in the restaurant. Are there ways where you can have Voice AI augment the server? There's a lot of opportunity to innovate and do more than just replicate what's out there, you know, today.
At the drive-through, I think all the AI would hear is arguing from my family about what we're going to order. I don't know how they're going to come out from that. I do want, to let me think. Before we go into AI, I do want to hit that. I do think it's important to ask, Aman, just think on the enterprise just to stay with it and close it out, just payments attached.
Yes.
How important is payments attached? I think Aman is not attaching payments.
That's right.
I'm curious how that impacts growth and margins. Does this make you more competitive if that's not something that has to be included?
Yeah. I think the team does a nice job of looking at the unit economics on a deal-by-deal basis because these are large deals. For example, Applebee's is really happy with payback periods and margins and ARPU on that deal. If you go look at a lot of these enterprise chains, the reason they have adopted our payments quite a bit is because it actually works really well as part of the platform natively. Often when they do not, it is because they have got another partner they are working with, and they want to focus right now on the point of sale. We are open-minded either way. Whatever is best for our customers is how we look at it.
One thing I think we need to do a better job sharing with all of you is as we get beyond these SMB restaurants and you look at more material growth out of retail, out of international, out of enterprise, some of the unit economics are different.
Sure.
Retail, I think, is the closest to the U.S. SMB Business in restaurants. GPV per store is, if anything, slightly higher than the TAM. We're seeing really good, it's like the focus there on that team has been remarkable. We've seen it feels a lot like the early days of the restaurant business when you see us in some of these markets in the U.S.. In enterprise, the deal value, as you can imagine, or mid-market even, the deal value in terms of ARR you're booking, you've got hundreds of locations.
The payback periods are never an issue because you've got a small sales team selling lots and lots of units. We're exploring what are the ways in which we can drive ARPU long-term and margins long-term upmarket and enterprise. We're looking at everything from innovation like Voice AI, like I talked about. We're looking at guest products because one of the areas where I think we can drive both win rate and ARPU upmarket is our guest suite. You think about most chains, they want a compelling online ordering, kiosk, CRM solution. And then also, I think enterprise support is another area. We haven't done much there, but I think there's an opportunity there long-term to create a differentiated support offering for enterprise chains because a lot of that often is in-house. It doesn't necessarily need to be.
Often, folks feel like they see the value of having Toast be a good partner there. And so, I think ultimately, in all these areas, we're managing and looking carefully at payback periods and margins. We feel like a lot of these areas are very accretive to the business. Ultimately, across all of these, the reason we're investing and the reason we think these are good businesses to be in is because if you look at the core of what we're selling, it's not that different than what we sell into an SMB restaurant. Like G&A, the OpEx cost, it's in our best interest, I believe, to continue to invest to scale because that's where the leverage will come from longer term.
Good. Now, I feel like we should, since it's a tech conference, we should talk about AI a little bit more. Let's skip on that, skip ahead to that. Just we wrote a lot of.
Am I going too slow on the answer?
No, no, you're not. I'm just trying to make sure we use your time wisely.
Sure.
I think with AI, I thought Sous Chef was interesting when you talked about it in Investor Day and the AI assistant for restaurant operators. You just also announced Toast IQ. How do these things work together for those maybe less familiar? Help us understand the monetization around AI, both from a customer standpoint, but also from a retention standpoint.
Yeah. You know what's interesting is the AI in this world is changing so quickly that what was relevant a year ago, and I'm sure many of you know this, six months ago, it's changed in terms of just how fast these LLMs and these models are evolving. What you could do with AI, even a year ago versus what you can do today, is changing. As an example, with Sous Chef, when we first launched it, we felt like you think of the average restaurateur. They're not technologists. They're not CIOs on staff. And often when they call us, it's like our support team, they have very basic questions like, hey, how do I turn off online ordering? Something very basic like that. Or I can't find this report.
I know I could do in the past, but I just do not remember how to get to this view where I can see short employees in terms of who have the highest check size or something. It is these really basic questions that we go. There is a lot of support volume and things that you would expect to be self-service. Part of the reason is because their turnover in restaurants and employees is pretty high. And so often they have got to get up to speed on this new platform. We have got a new GM or a new staff member. The vision behind Sous Chef was, can we give people a language interface to be able to interact with the back end of Toast? You can do things like the same questions you would call support for, ask Sous Chef using a language interface, just like you would ChatGPT.
Lets say you can go in and say, what happened with sales yesterday? Or why was fraud up? Or who are the employees that had the best productivity and upsell on these items that I know we wanted to promote as specials? There is a whole host of questions where offering that language interface, I think, makes Toast more accessible and powerful. The other thing, there is this buzzword going around in AI, I think MCP. At the highest level, as I understand it, it is an API that LLMs can use to talk to these back ends. And so within Toast, one of the things we are looking at is how do we enable all of our platform via MCP so that you do not just access reports. You can actually start to run actions.
And over time, this is like the agentic piece where you can actually do more and more complex actions. And the idea would be one basic action would be 86 an item, just talk to as opposed to go find this queue in the menu. Turn off online ordering because I'm really busy or h elp me a myriad of use cases around just managing the back end of Toast. There are so many of those. Amnd then over time, you can even do more complex things. Like you can say, hey, if I'm slower than if traffic is slow, generate a campaign and send out offers in real -time on whether social or Google or text or email. Those are types of things where I think having that language interface is really powerful.
I actually think one of the biggest opportunities long-term is restaurants don't have the technology or the tools to try to optimize their yield. What ends up happening is you try to live and die by your sales forecast because you've got your staff and your food you purchased. Really, once you've gone there, you try to maximize your dining room capacity, your kitchen capacity. You want every incremental sales dollar, it is really valuable unless you're full. They don't have the technology to enable all that. You can run happy hour and some of these basic ways to try to optimize your sales. There's not a lot of technology. You look at other categories. You look at airlines or hotels. It is very data-driven to help make sure the yield on a flight or hotel is optimized.
I think there is opportunity where AI can help with those types of use cases. Because imagine you can go in and say, hey, anytime I'm slow, which the platform can tell you, find ways to get more people in with special offers in real time, as an example. That's like Sous Chef. The vision is make it more agentic, make it more the interface where you can not only get data and insights, but actually manage the back end with the language interface. And then Toast IQ is just more of the intelligence layer across the platform. And so as an example, one of the things that we were recently testing into is on our terminals and our Handheld. I mean, e-commerce has had this for a long time, the ability to recommend what items to suggest to help maximize check size.
A lot of servers today on the point of sale, online ordering might have it, but the terminals typically do not. There is tech you can bring to life that just says, what are the items most likely to pair with those items with the data? What is most popular? Over time, when people book on things like Toast Tables or through one of our partners, if you know who the guest is at the table, one of the things I talk internally about in terms of long-term vision is you all remember the Show Cheers? Everybody knows your name. This concept of a Cheers experience where not only can you recommend what is popular in the menu, you can recommend what you tangentially like on the menu. There is a lot of opportunity, again, for AI to play a role there long-term.
And Toast IQ is really the intelligence layer across all of our products to help with the employee experience, the guest experience, all the constituents.
Is there a monetization path for some of these things in your mind?
Absolutely. I think the monetization, like anything else, is driven by value.And so w e are really focused on what we as a leadership team keep reinforcing is AI is going through this rapid, it's very clear AI is here to stay, and it's going to make a huge impact in the next decade. That being said, it's not clear where we're in the hype cycle and what is real and what is not. So the team is very, very focused on outcomes for customers. We always talk about this internally, which is the whole point of doing all of this is to show that it's creating outcomes for customers that customers care about. The way to measure that is a simple measure I love is you took it away, how many people freak out?
It tells you freak out is the wrong word, but how many people will be unhappy that you took this product away? And so we are very focused right now on usage, adoption, activation, and customer feedback from the beta customers that are using it. I think over time, if we can solve for that, the monetization, I think my guess is what we'll end up having is a basic tier where everyone has access to a lot of these tools and a premium tier that does more that will monetize.
Good. Good. I do want to we're almost out of time. Time goes by so quickly. On the consumer opportunity, something has always been of interest to me, Aman. I think you guys mentioned it at Investor Day. You just mentioned the example of Cheers and knowing what to curate for me as an individual. Why can't, it's very clear that the SMB platform on the restaurant side is moving to enterprise, and we can talk about that more. But I feel like the consumer side could be really interesting to the extent that you have that data, you can curate content, and even agentic commerce can help you do checkout in any channel. How big of a priority is that for you, Aman?
If you look at back to the Horizons framework, our core Horizon one and two investments and focus is we think, and I'm not providing short-term guidance here, but long-term, we think we can power many multiples of our current locations if we are global, if we do multi-vertical well in the verticals where we think we can be relevant with our strategy of the vertical deep approach. It's a very simple business. It's not necessarily the right approach. But you go to a lot of these verticals, I think that's a big opportunity. You look at core, we think we can gain a lot of share. As we continue to gain scale, all of our opportunities where the scale and the data can play a role become more and more powerful.
And so whether it's consumer or supplier or employee, those opportunities are more powerful for the more scale we have. In fact, I'd argue the biggest challenge we have when it comes to consumer is just supply. It's great that we have, whatever, 140,000 locations globally, but that's still a fraction of all of the locations. Our strategy on consumer is to go back and say, what are the things that, and it is a focus for us. It's a Horizon three focus. It is a focus for us. We're looking at what are the things that Toast can uniquely do well in the market. Like what would we want to be known for in the market if we had the Toast app in your pocket? We call it local. The things that jump out to us are bringing people in store.
That's where I think we can play a role because we've got this really powerful data advantage, back to what I talked about, the yield optimization, to help restaurants drive demand. The pieces we look at very carefully are we're looking at things like a reservation book, a wait list. That's why we launched Toast Tables. We think that can be an anchor to things like yield optimization and offers. And thewn in store, it can power the Cheers experience because you have to identify the guest. It's awkward to have to check in on NFC or people don't—we may get there someday, but the best way to do that is ahead of the transaction, of the meal if you know who the guest is.
And then, I think to your point, I think post-purchase, it's this powerful experience where you can just walk out and leave because you've got a card on file as part of the transaction. You can even ask the guest, we do this today, how'd it go? From that data, you can interject if it was not a good experience or encourage people to share on Google, which people care about, and social. There are a bunch of use cases off of that that we're looking at as well. But that's the primary driver, which is how do we bring people in store. That starts with discovery, booking, ordering, and paying.
I'm going to keep asking you about it. I do think it's interesting, but I'm glad you're taking a disciplined and methodical approach to it. I just feel like there's some interesting opportunity out there. We have two and a half minutes left. I wanted two things real quick, international and then capital. Maybe quickly on capital. You have the trust on SMB restaurants. There's a lot of need for capital. Your willingness to extend that capital in this macro environment.
Yeah. We have always done, I think, a really nice job of building out the capital business in ways where it's always been from day one. It's not about how much money we lend. It's about making sure we're balanced that while managing risk. If you look at the penetration of capital as a result, in fact, our board will push us to say, could we go faster? We're trying to be really balanced to make sure that we are doing a great job of managing risk. That's the core to how we operate. Of course, we work with partners as well. They demand that of us as well. I think if there was a slowdown, I think we were tracking all leading indicators. We know which levers to pull.
You have heard this before, but the good thing is because the Toast platform, the way it is built and the way the capital platform works is you can literally log into Toast. It will tell you based upon your sales volume and all the data we know what loans are available to you. The loans are paid back as part of the payment stream. The biggest thing we are trying to always assess is what are the odds this restaurant is going to go out of business? Because t hat is what really matters for our capital defaults. And the team d es a nice job of that.
Yeah. No, we have a lot of data. You can also be there to help when things are tougher. I'm sure you'll be selective.
Totally. I think that's a really good point where some of the stories you hear is a lot of these small business owners don't have the ability to get this capital this easily from another provider. That's actually a really good point to continue to make sure that if there was a tougher environment, we are really balanced about leaning in as well.
Let's close out of international. That was another popular question we got from investors. I've seen it in London. I've heard you talk about product parity and getting those countries into product parity with the U.S.. That's an ambition. It does feel like it's more English-speaking in terms of focus. Can you get into another gear on growth in international?
We certainly aspire to, I think, longer term. If you go and look at the ecosystem of what people are using globally, whether it's in Western Europe, parts of North America, Australia, New Zealand, other markets that are like Singapore, Dubai, et cetera, you see lots of opportunity. I think our balance is how much can we—it goes back to how much can you do well? That's always the hardest thing to solve for. I don't think our international growth is constrained on capital. It's leadership and execution. How many great people can we bring in that can execute at a high level and open up the opportunity faster? Emily knows, the team knows. We push as hard as we can to open up the opportunity globally.
Because I do think that fundamentally, if you go visit restaurants in countries we're not in, especially restaurants that have above-average GPV, just like in the U.S., that's where we shine, these more successful restaurants that have more complex operations, they can absolutely benefit from a platform like Toast. We are going to be strategic in terms of making sure that we open up markets in a way that we're set up for success. Because the counterargument to this is you don't want to end up in 20 markets and number four in all the markets either. And so we are trying to balance the two things. But our aspiration absolutely over time will be to open up more markets.
All right. Good. No, I think we covered a lot. I have a lot more other questions. Hey, top line's been great. You guys are already at the mid-term margin target. I did not want to dig in too much on that. But I am glad we got to cover some of these subjects.
Thank Tianjun.
Aman, thank you for your time.
Thank you so much.
Thank you. Thank you.