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Highlights
- Restaurant Technology (ResTech) giant Toast has expanded rapidly by partnering up with at least 48,000 restaurants by end of June 2021.
- Toast is planning to list its shares on the New York Stock Exchange (NYSE).
- Toast was generating US$ 494 million in annual recurring revenue (ARR) by the end of June 2021.
Boston-based restaurant technology (ResTech) giant Toast, Inc. is officially going public and aims to raise US$ 100 million in gross proceeds. Toast's business operations are based on selling its cloud-based software to help restaurants set up a point-of-sale system with smoother transactions.
Launched in 2013, Toast has expanded its market presence rapidly by partnering up with at least 48,000 restaurants by the end of June 2021. In the last 12 months, the cloud-based software services provider processed over US$ 38 billion in gross payment volume.
According to reports, the company plays an important role in handling about 5.5 million customer orders every day. During the COVID-19 pandemic, Toast adapted to the public health restrictions and offered new products like the contactless Order & Pay. This helped the restaurants to attract customers and Toast also recorded a surge in its revenues.
In the Form S-1 filed with the Securities and Exchange Commission, Toast has claimed that the restaurant industry was lacking a technology leader and it aims to fill that void.
The company was started with a vision of creating a mobile payment application for restaurants, however, it expanded by offering services like setting up a point-of-sale and kitchen display system. Toast is also catering to the needs of enhancing delivery and marketing services.
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Here's what to expect from Toast IPO
Toast is planning to list its shares on the New York Stock Exchange (NYSE) and reports suggest that the ResTech company could be valued at around US$ 20 billion at the time of its public debut.
Major financial services companies like the Goldman Sachs Group, J.P. Morgan Chase & Co. and Morgan Stanley would be taking the underwriting responsibility for the initial public offering and the stock will likely trade under the stock symbol 'TOST'.
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To buy the TOST stock, one would have to wait for the official debut on the stock exchange. Alternatively, investors can try to get hold of pre-IPO shares through online trading platforms or a stockbroker.
Bottom line
Toast seems to be on the right track as the company has seen massive growth over the last eight years. As of June 30, 2021, it was generating US$ 494 million in annual recurring revenue (ARR), representing an increase of 118 per cent year-over-year (YoY).
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The restaurant management company recorded US$ 704 million in revenues in the first half of 2021, a 105 per cent period-over-period climb. Toast seems to have the potential to attract restaurants that want to save on third-party commissions.
