Toast surges 56% in NYSE debut after IPO valued restaurant-tech company at $20 billion


CNBC 22 September, 2021 - 03:08pm 31 views

What is toast IPO price?

Toast prices IPO at $40 a share — way above estimated range — for $20 billion valuation. MarketWatchToast prices IPO at $40 a share — way above estimated range — for $20 billion valuation

When does toast go public?

Toast proceeded to an IPO on September 22, 2021 offering shares at $40 apiece. The offering was above the expected range and valued the company at around $20 billion. Toast had been valued at about $5 billion following its final private funding round in February 2021. forex.comToast and its listing plans: Everything you need to know

Toast sells shares in IPO at $40, topping range and valuing restaurant-tech company at $20 billion

CNBC 22 September, 2021 - 05:11pm

Restaurant-technology vendor Toast priced its IPO on Tuesday at $40 a share, the company said in a release. The offering was above the expected range and values the company at about $20 billion.

Toast had expected to sell shares at $34 to $36 a piece, after raising the range from $30 to $33. The company will trade on the New York Stock Exchange under ticker symbol "TOST."

Toast's IPO comes after a roller-coaster stretch in the pandemic during which revenue initially sank by 80% as restaurants closed and cities across the country shut down. The company slashed half of its workforce in mid-2020 and took desperate measures to stay afloat.

But like other hospitality industry-focused tech companies such as Airbnb and TripActions, the rebound was much swifter than expected. Restaurants stayed open and shifted their business to takeout, delivery and mobile ordering, playing right into Toast's sweet spot.

Toast initially gave a one-month credit of software fees to its customers and provided free access to its technology that enabled takeout, online ordering and gift card purchases.

By the third quarter of 2020, revenue was increasing again from the prior year. By November the company was experiencing such an upswing that it orchestrated a secondary share sale so that current and former employees could sell up to 25% of their vested shares at a price that valued Toast at $8 billion.

Prior to the Covid-19 pandemic, Toast was thriving by selling technology to restaurants that helped them combine their payment systems with things like inventory management and multilocation controls for eateries with more than one site. Investors valued the company at $5 billion in February 2020.

Toast now says it's serving more than 48,000 restaurant locations as of the end of June, up from 27,000 in 2019. Annual recurring revenue surged 118% in the second quarter from a year earlier to $494 million. The bulk of Toast's revenue comes from what the company calls financial technology solutions, consisting primarily of fees paid by customers for payment transactions. Less than 10% comes from subscriptions.

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Why Square Stock Was Moving Higher Today | The Motley Fool

Motley Fool 22 September, 2021 - 02:29pm

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Shares of Square (NYSE:SQ), the diversified fintech company, were climbing Wednesday -- apparently assisted by the market debut of Toast (NYSE: TOST), a restaurant payments specialist that was surging on its IPO day, signaling a healthy appetite for digital payment stocks. Square also launched a new feature for its Cash App Wednesday.

As of 3:17 p.m. EDT, Square stock was up by 3.7%, while Toast had soared by 54% from its $40 IPO price.

Square is a major competitor for Toast, and while Square has become much more than a small-business payments processor -- having branched into peer-to-peer payments, cryptocurrency, and small-business lending -- handling payments for small businesses like restaurants remains one of its core components.

Toast's market cap surged to $20 billion Wednesday, indicating that investors see a significant runway ahead for its business. The company provides restaurants with cloud-based software that handles everything from payments to communication between the front of the house and the back of the house and other restaurant operations. In its last four quarters, Toast processed $38 billion in gross payment volume, and it has reached $1.2 billion in revenue over the last four quarters.

Separately, Square said it had launched Cash App Pay, which enables merchants to accept payments from Cash App with a QR code. Credit Suisse also said that the company was beta-testing a new "buy now, pay later" (BNPL) service, following its $29 billion acquisition of Afterpay weeks ago.

The interest in Toast as well Square's move into BNPL and merchant payments through Cash App show that there is plenty of room for growth in the digital payments space. Toast valued the global restaurant business at $2.6 trillion, and that is only one portion of the market that Square is aggressively going after. As fintech companies further disrupt traditional banking, there's still a lot of room for Square -- and its share price -- to grow.

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Restaurant-software maker Toast valued at nearly $33 billion as shares surge in debut

Yahoo Finance 22 September, 2021 - 10:47am

(Reuters) -Toast Inc fetched a valuation of nearly $33 billion in its New York Stock Exchange debut on Wednesday, as shares of the restaurant software provider jumped 63%, underscoring a deep investor appetite for fast-growing software firms.

The stock opened at $65.26, compared with its initial public offering price of $40 per share. The valuation marked a substantial jump from the company's last private funding round when it was valued at $4.9 billion in February 2020.

Toast's listing comes at a time when digital transformation among restaurants has accelerated during the pandemic, and merchants have adopted Toast software to manage takeout system through first-party delivery or working with partners, including DoorDash Inc and Uber Eats.

"We're in our early days, and we believe that we could be the unified platform that powers the restaurant industry," said Chris Comparato, chief executive at Toast.

The Boston-based company builds software that helps restaurants manage online orders and dine-in order, operate an on-demand delivery network and integrate payments.

Founded in 2011, Toast counts TPG, Tiger Global Management and Bessemer Venture Partners among its backers. It partnered with nearly 48,000 restaurant locations and processed more than $38 billion in gross payment volumes over the 12 months ended June 30.

As restaurant revenues plunged due to lockdowns and other restrictions, Toast cut its workforce and launched new features to cater to the shifts in dining behavior, including contactless ordering, indoor dining payments through QR codes, curbside notifications for takeout and deliveries on a flat-fee basis.

Toast's net loss widened to $235 million for the six months ended June 30, from $125 million a year earlier. Revenue, however, more than doubled to $704 million.

The company sold 21.7 million shares in its IPO, raising about $869.6 million. Its IPO was priced above an earlier targeted price range of $34 to $36 per share.

Goldman Sachs, Morgan Stanley and J.P. Morgan were the lead underwriters for Toast's IPO.

(Reporting by Echo Wang and Krystal Hu in New York; Sohini Podder in Bengaluru; Editing by Ramakrishnan M., Aurora Ellis and Shailesh Kuber)

Toast Inc. shares popped as high as 63% in their trading debut Wednesday, marking a warm Wall Street welcome for the maker of restaurant-focused software and payment technology.

Toast, which provides restaurant software, priced its IPO at $40 a share. Freshworks priced at $36 a share.

If ABBV closes above 110 on the expiration date, the shares will be called away at 110, leaving the trader with a total gains of $555.

Freshworks Inc. priced its initial public offering at $36 a share Tuesday night, above its expected range of $32 to $34 a share.

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The Freshworks IPO raised $1.03 billion, pricing 28.5 million shares at $36 and giving the software company a valuation of $10.1 billion.

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Shares of Toast soared more than 56% in its first day of trading, while Freshworks rose 32%. Stock in the fashion company a.k.a. Brands dropped below its offer price.

Freshworks Inc. was cheered by investors in their public debut, as the California-based the customer experience and management services provider's stock opened 20.8% above the initial public offering price. The company said overnight that the IPO priced at $36 a share, above the expected range of between $32 and $34 a share, as the company raised $1.03 billion. The stock's first trade was at $43.50 at 12:06 p.m. Eastern for 3.6 million shares. At the price, the company was being valued at about

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Analysis: 6 NFL playoff teams don't panic, avoid 0-2 starts

New York Post 20 September, 2021 - 02:31am

Judging NFL teams after one game has always been foolish. It’s even more absurd in a 17-game season.

The Bills, Titans, Ravens, Browns, Bears and Washington lost their season openers after making the playoffs last season. No panic. Each team rebounded with a victory in Week 2. The Packers look to join the group Monday night.

The Cowboys, a favorite to contend in the weak NFC East, also lost their opener to the defending Super Bowl champion Buccaneers on a late field goal. They bounced back with a last-second win of their own on the road against the Chargers on Sunday.

“This is how the NFL works, right? We understand that,” Buffalo coach Sean McDermott said following a 35-0 win at Miami. “That’s why we have to stay humble. I saw a hunger in our football team this week. We’ve got plenty to work on though. That’s what we’ve got to get back to. We’ll start on the plane as coaches, start watching the film, and try to improve every week. That’s the goal.”

The Bills, who lost the AFC title game at Kansas City last January, showed why they’re the class of the division after stumbling at home against Pittsburgh. Josh Allen was efficient while earning his first win since signing a big contract. Beating Miami is nothing new for Buffalo, which has won six in a row in the series by an average of 20 points.

Tennessee avoided a 0-2 start with an impressive comeback at Seattle, rallying from a 14-point, fourth-quarter deficit. Derrick Henry ran for two TDs in the final 12 1/2 minutes, Ryan Tannehill threw for 347 yards and the Titans racked up 532 yards in the overtime win.

The reigning AFC South champs responded well after a blowout loss at home to Arizona in their opener.

“I think that (performance) was certainly who we are,” Titans coach Mike Vrabel said of the win.

Baltimore overcame an 11-point deficit in the fourth quarter to beat the Chiefs 36-35 on Sunday night, just six days after blowing a 14-0 lead in an overtime loss at Las Vegas. Lamar Jackson ran for 109 yards and two TDs, including 2 yards on a fourth-and-1 from the Ravens 43 with 1:05 remaining to seal it.

It was a gutsy call from coach John Harbaugh, whose team has persevered despite a rash of season-ending injuries to key players.

Cleveland, which blew a double-digit lead in a playoff rematch against Kansas City in the opener, fell behind Houston early, tied it up at halftime and pulled away after Texans quarterback Tyrod Taylor was injured.

It was a costly win, however, as wide receiver Jarvis Landry suffered a medial collateral ligament injury on the second play. Baker Mayfield still had plenty of options, relying on tight ends and running backs.

The Bears lost Andy Dalton to a knee injury in a 20-17 victory over Cincinnati, giving Justin Fields an opportunity to play the second half and possibly longer. Fields didn’t do much, but Chicago’s defense held Joe Burrow and the Bengals to 248 yards after Matthew Stafford and the Rams torched the Bears in Week 1.

Fields will have to do more than 6 of 13 for 60 yards for the Bears to have any shot at going back to the playoffs.

“I’m just anxious to see what I messed up on and what I have to do better,” Fields said. “I didn’t play well. In my eyes, I played well enough to get the win, of course, but there’s a lot of room for me to improve.”

Ten days after he nearly led Dallas to an upset over Tom Brady and Tampa in a thrilling season opener, Dak Prescott made sure the defense couldn’t give one away. He was terrific in Los Angeles, leading the Cowboys on a winning drive completed when Greg Zuerlein hit a 56-yard field goal as time expired.

Dallas allowed Justin Herbert to throw for 338 yards but held the Chargers to 17 points. Not bad for a defense missing key starters.

On the flip side, the Eagles and Saints got reality checks after opening the season with lopsided wins.

Philadelphia played more like last year’s 4-11-1 club after looking like a team that could go worst to first. Jalen Hurts couldn’t do much and the offense was shut down in a 17-11 loss to San Francisco.

New Orleans, which played like a Super Bowl contender in a 38-3 rout over Green Bay, sure missed Drew Brees. Jameis Winston threw for only 111 yards and had two picks in a 26-7 loss at Carolina after tossing five TDs against the Packers.

It’s a long season. Fifteen games to go. Only seven teams will remain winless through two weeks unless the Lions-Packers tie Monday night.

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