“One of our values is, we are all in customer success,” Narang said. “If you talk to our customers, one of the things they will tell you is that we really live that value, and that is why we continue to grow and take share at the rate we are.”
Narang’s remarks came after the FTC and state authorities filed a lawsuit Thursday (Oct. 29) accusing Toast of imposing unauthorized charges, misleading businesses about pricing and making it difficult for customers to cancel their services.
Toast issued a response to the lawsuit the day it was filed, saying the company disagrees with the allegations and will vigorously defend itself against the FTC’s claims. The company said, and Narang reiterated during Tuesday’s call, that it believes the Restore Online Shoppers’ Confidence Act (ROSCA), which the FTC is seeking to apply in this case, does not apply to negotiated B2B agreements.
“If ROSCA were to apply to B2B custom-negotiated contracts in a B2B context, it would have huge implications for, really, the whole industry and business contracts in general,” Narang said. “We have a lot of confidence in our business practices and are ready to defend ourselves.”
During the third quarter, Toast added about 8,500 net new locations, bringing the total to about 189,000. The company’s annual recurring run-rate increased by 24% to reach $2.5 billion as of Sept. 30, according to a Tuesday press release outlining its financial results for the quarter.
Narang said during the call that with these additions, Toast made “share gains across every customer segment.”
Narang also highlighted Toast’s addition of new AI agents in its expanded Toast IQ Grow and its new Toast IQ Team. Toast IQ Grow is a marketing solution that was introduced earlier this year, while Toast IQ Team is a new labor management solution for restaurants and retail operators, according to an Oct. 6 press release.
During Tuesday’s call, Narang said of these products: “Each step brings us closer to a platform that not only supports customers but actively delivers results for them.”
