Restaurant-tech company Toast popped today in its market debut. 🥂 Toast’s stock rose 56%, valuing the company at roughly $20 billion.
This is a far cry from where the company was last April after laying off half of its workforce. Toast was battered by restaurant closures. The company has bounced back off from the deep declines, however, delivering robust revenue throughout 2021. 👏 In 2020, Toast’s revenue was up 24% to $823.1 million. In Q2 2021, the company made more than half of the revenue it did in 2020 ($424.7 million.)
Toast is like Square, but specifically for restaurants. The company’s tech allows restaurants to offer takeout, online orders, gift card purchases, and accept payments. For consumers, the Toast app allows users to make pickup and delivery orders (and sometimes even collect loyalty points in the process.)
The company makes the bulk of its money from payments, which comprise over 80% of total revenue. The remaining 20% comes from sales of hardware, subscription services, and other services. As of IPO, the company is not profitable. It posted a net loss of $135.5 million in Q2 2021.
However, that certainly hasn’t scared investors off, as they’re excited about the company’s growth prospects. $TOST closed the trading day at $62.51. 💸