Toast is planning to offer 21.7 million shares with the initial public offering price of $31.50 per share. Goldman Sachs Group Inc, Morgan Stanley, and JPMorgan Chase & Co are acting as the leading underwriters for the offering.
On Monday, Boston-based restaurant software provider Toast Inc updated its regulatory IPO filing with the US Securities and Exchange Commission (SEC). It has turned out that Toast is looking to get a valuation of as much as $16 billion after the IPO, which is twice higher than its valuation from a secondary share sale last November.
Back in February 2020, Toast announced a $400 million Series F funding round at a $4.9 billion IPO valuation. Bessemer Venture Partners, TPG, Greenoaks Capital, and Tiger Global Management led the round. Later, in November 2020, Toast had a secondary sale that brought its valuation to around $8 billion. Now, according to the latest prospectus, Toast is planning to offer 21.7 million shares with the initial public offering price of $31.50 per share.
Goldman Sachs Group Inc (NYSE: GS), Morgan Stanley (NYSE: MS), and JPMorgan Chase & Co (NYSE: JPM) are acting as the leading underwriters for the offering.
About Toast Ahead of Its IPO
Toast is a cloud-based restaurant software company. Founded in 2011 and launched in 2013, Toast is powering restaurants of all sizes with a restaurant management and point of sale (POS) system built on the Android operating system.
Since its founding, Toast has significantly grown. As of June 30, 2021, they had 47,942 locations on its platform, times higher from 33,129 and 19,891 locations in 2020 and 2019, respectively. Besides, the Toast platform facilitated over 5.5 million orders per day, up to 40 million touchpoints per day on these orders, and up to 50 million items and order modifiers per day. In addition, it had more than 79,000 connections to approximately 150 partners used by over 33,000 of its restaurant locations.
The company’s revenue comes through four main revenue streams: subscription services, financial technology solutions, hardware, and professional services. Its revenue grew 105% year-over-year from $344 million in the six months ended June 30, 2020, to $704 million in the six months ended June 30, 2021.
The company had to resort to drastic measures during the COVID-19 pandemic. In April 2020, Toast laid off 50% of its workforce. Its GPV declined by 24% in the second quarter of 2020. However, despite the damage that the pandemic brought, Toast was recovering quite fast. To help restaurants navigate the immediate impact of the COVID-19 pandemic, Toast accelerated a number of product launches.
Among them were Toast Delivery Services that provided delivery through Toast Online Ordering as well as the Toast TakeOut app. Besides, the company rolled out Toast Now, a digital-only platform for restaurants of all sizes to quickly activate online ordering, delivery, gift card, and email marketing capabilities. Finally, Toast started employing contactless payments.