American company$Toast (TOST.US) $POS, a provider of POS systems for catering companies, plans to launch an initial public offering on the New York Stock Exchange on Wednesday, Sept. 22, est, raising the price range to $34 to $36 (initially $30 to $33) under the symbol "TOST".
According to Bloomberg, the company raised up to $717 million, and the deal could value Toast at as much as $18 billion. Goldman Sachs, Morgan Stanley, J.P. Morgan and other six foreign investment co-underwriters.
Business introduction
Multi-in-one POS and restaurant management platform Unicorn Toast was established in 2011. The POS system provided by the company can integrate the foreground, backstage and online systems of the catering company, and at the same time provide the company with analysis and suggestions on sales model and customer loyalty trend, which is suitable for enterprises in the catering service and hotel fields.
Toast offers cloud-based end-to-end technology solutions for restaurants, providing a suite of SaaS products and financial technology solutions, including integrated payment processing, restaurant-level hardware and a third-party partner ecosystem. The main services include: 1) subscription service. 2) Financial technology solutions. 3) platform service.
Toast platform
In the 12 months ended June 30, 2021, the company served more than 48000 restaurants with approximately 29000 customers and processed total payments of more than $38 billion.
The company's products and services have a significant effect on improving restaurant operation efficiency, promoting revenue growth and improving customer satisfaction. Continued word-of-mouth has helped Toast accelerate its growth, with one in five new restaurants on Toast coming from referrals from existing customers, according to the company's prospectus.
In 2017, Toast was recognized as the third fastest growing technology company in North America among Deloitte's Top 5 growth companies, and was selected as one of the Forbes Cloud Computing Top 100.
In its financing history, Toast has received investment from top institutions such as Tiger Global Management many times. In February 2020, Toast received up to US $400m in the latest F-round financing, which is led by Bessemer Venture Partners, Greenoaks Capital, Tiger Global Management, TPG and TCV.
Financial overview
In the 12 months ended June 30, 2021, Toast had sales of $1.2 billion. In the first half of 2021, the company's total revenue was $703.7 million, up 105% from a year earlier, with a net loss of $234.65 million.
In the most recent quarter, Toast's gross margin was about 21%. After taking into account all other costs, such as sales and marketing, as well as research and development, Toast recorded a net loss of $135.5 million for the quarter.
Total payments (GPV) in 2020 were $25.4 billion, an increase of 17% over the previous year. It reached $23.4 billion in the first half of 2021, an increase of 125 per cent over the same period.
Most of Toast's revenue comes from the company's financial technology solutions, which mainly include fees customers pay for transactions and less than 10 per cent from subscription services.
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