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Toast price IPO is $ 40, well above expectations

Toast POS system

toast

Restaurant technology vendor toast The price of the IPO on Tuesday was $ 40 per share. The company said in the release.. The offering was better than expected and the company was worth about $ 20 billion.

Toast was hoping to sell the stock at $ 34 to $ 36 per pieceAfter raising the range from $ 30 to $ 33. The company trades on the New York Stock Exchange under the ticker symbol “TOST”.

Toast’s IPO came after the pandemic and roller coaster expansion. Meanwhile, revenues were initially down 80% as restaurants closed and cities across the country closed.society Cut in half In mid-2020, we increased our workforce and took desperate steps to stay at sea.

But like other tech companies focused on the hospitality industry Airbnb And Trip Actions, the rebound was much faster than expected. The restaurant continued to operate, shifting its business to takeaway, delivery, mobile ordering and playing at Toast’s sweet spot.

Initially, Toast provided customers with a month’s worth of software credits and free access to technology that enables takeaways, online orders, and gift card purchases.

By the third quarter of 2020, revenue had increased again from the previous year. By November, the company had a very good turn and Secondary stock sale As a result, current and former employees were able to sell up to 25% of their stakes at a toast value of $ 8 billion.

Prior to the Covid-19 pandemic, Toast thrived on selling technology to restaurants. This allowed restaurants to combine payment systems with inventory management, multi-location management, and more for restaurants with multiple sites.Investors make a company $ 5 billion February 2020.

Toast currently serves more than 48,000 restaurants as of the end of June, up from 27,000 in 2019. Second-quarter annual recurring revenue increased 118% year-on-year to $ 494 million. Most of Toast’s revenue comes from what the company calls financial technology solutions, which consist primarily of fees paid by customers for payment transactions. Less than 10% by subscription.

Toast price IPO is $ 40, well above expectations

Source link Toast price IPO is $ 40, well above expectations

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