{"id":342566,"date":"2021-09-22T06:29:00","date_gmt":"2021-09-22T03:29:00","guid":{"rendered":"https:\/\/en.buradabiliyorum.com\/ipo-report-toast-ipo-5-things-to-know-about-the-restaurant-focused-payments-player\/"},"modified":"2021-09-22T06:29:00","modified_gmt":"2021-09-22T03:29:00","slug":"ipo-report-toast-ipo-5-things-to-know-about-the-restaurant-focused-payments-player","status":"publish","type":"post","link":"https:\/\/buradabiliyorum.com\/en\/ipo-report-toast-ipo-5-things-to-know-about-the-restaurant-focused-payments-player\/","title":{"rendered":"#IPO Report: Toast IPO: 5 things to know about the restaurant-focused payments player"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_85 counter-hierarchy ez-toc-counter ez-toc-custom ez-toc-container-direction\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-6a4141538dd4d\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #dd3333;color:#dd3333\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #dd3333;color:#dd3333\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-6a4141538dd4d\" checked aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/buradabiliyorum.com\/en\/ipo-report-toast-ipo-5-things-to-know-about-the-restaurant-focused-payments-player\/#IPO_values_company_at_about_20_billion\" >IPO values company at about $20 billion<\/a><ul class='ez-toc-list-level-6' ><li class='ez-toc-heading-level-6'><ul class='ez-toc-list-level-6' ><li class='ez-toc-heading-level-6'><ul class='ez-toc-list-level-6' ><li class='ez-toc-heading-level-6'><ul class='ez-toc-list-level-6' ><li class='ez-toc-heading-level-6'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/buradabiliyorum.com\/en\/ipo-report-toast-ipo-5-things-to-know-about-the-restaurant-focused-payments-player\/#A_fragmented_market\" >A fragmented market<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-6'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/buradabiliyorum.com\/en\/ipo-report-toast-ipo-5-things-to-know-about-the-restaurant-focused-payments-player\/#The_opportunity_ahead\" >The opportunity ahead<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-6'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/buradabiliyorum.com\/en\/ipo-report-toast-ipo-5-things-to-know-about-the-restaurant-focused-payments-player\/#Growing_revenues_widening_losses\" >Growing revenues, widening losses<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-6'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/buradabiliyorum.com\/en\/ipo-report-toast-ipo-5-things-to-know-about-the-restaurant-focused-payments-player\/#Get_paid\" >Get paid<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-6'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/buradabiliyorum.com\/en\/ipo-report-toast-ipo-5-things-to-know-about-the-restaurant-focused-payments-player\/#The_other_kind_of_takeout\" >The other kind of takeout<\/a><\/li><\/ul><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/buradabiliyorum.com\/en\/ipo-report-toast-ipo-5-things-to-know-about-the-restaurant-focused-payments-player\/#Emily_Bary\" >Emily Bary<\/a><\/li><\/ul><\/li><\/ul><\/li><\/ul><\/nav><\/div>\n<p>&#8220;<strong>#IPO Report: Toast IPO: 5 things to know about the restaurant-focused payments player<\/strong>&#8221;<\/p>\n<h2 class=\"article__subhead\" itemprop=\"alternativeHeadline\"><span class=\"ez-toc-section\" id=\"IPO_values_company_at_about_20_billion\"><\/span>\n  IPO values company at about $20 billion<br \/>\n<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><\/p>\n<div class=\"column column--full article__content\" role=\"region\" aria-label=\"article body\">\n<div class=\"article__side\">\n<div class=\"container--sticky not-active\">\n<div id=\"cx-next\" data-nosnippet>\n              <\/div>\n<\/p><\/div>\n<\/p><\/div>\n<div id=\"js-article__body\" class=\"article__body article-wrap at16-col16 barrons-article-wrap\" itemprop=\"articleBody\" data-sbid=\"WP-MKTW-0000411264\" role=\"document\">\n<div class=\"barrons-article-ad-wrapper\">\n<div data-track=\"barrons-article-ad-wrap\" class=\"barrons-article-ad sticky_item\">\n<div class=\"barrons-main-article-ad-target sticky_target body_ad\" aria-hidden=\"true\"><\/div>\n<\/p><\/div>\n<\/p><\/div>\n<div data-layout=\"\n                inline\" data-layout-mobile=\"\" class=\"\n          media-object\n          type-InsetArticleReader\n              \n              inline\n  article__inset\n          article__inset--type-InsetArticleReader\n              article__inset--inline\n  \"><\/p>\n<div class=\"media-object-article-reader\">\n<div class=\"audioplayer\" data-sbid=\"WP-MKTW-0000411264\" role=\"region\" aria-label=\"Listen to Article\" tabindex=\"-1\" id=\"articlereader\" data-show-title=\"false\" data-theme=\"wsj-article-reader\" data-show-header=\"false\" data-show-subscribe=\"false\" data-ads-enabled=\"true\" data-save-publication=\"false\">\n        <\/div>\n<\/p><\/div>\n<\/p><\/div>\n<p id=\"correction\" class=\"correction\">A previous version of this report incorrectly referred to Toast\u2019s volume numbers instead of its revenue. It has been corrected. <\/p>\n<p> Toast Inc. could be rolling in dough as the maker of restaurant-focused payment software heads for the public markets. <\/p>\n<div class=\"paywall\">\n       The financial <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/technology\/\" data-internallinksmanager029f6b8e52c=\"4\" title=\"Technology\" target=\"_blank\" rel=\"noopener\">technology<\/a> company sees a big opportunity to simplify the antiquated and multifaceted process of managing restaurant operations, especially for establishments that still rely heavily on paper solutions or use various systems that don\u2019t connect with one another. Toast<br \/>\n        TOST<span><\/span><br \/>\n       is set be valued at about $20 billion, after reportedly pricing its initial public offering at $40 a share, well above its expected range of $34 to $36 apiece.<\/p>\n<p> Among Toast\u2019s competitors is Square Inc.<br \/>\n        SQ,<br \/>\n        <bg-quote field=\"percentchange\" format=\"0,000.00%\" channel=\"\/zigman2\/quotes\/205989440\/composite\" class=\"positive\">+0.43%<\/bg-quote><span>,<\/span><br \/>\n       which itself has seen strong success with its offering that aims to provide pricing transparency, a modern interface, and interoperable solutions for small businesses. Square\u2019s customer base includes restaurants and coffeeshops as well as other kinds of retailers, but analysts see Toast as well-positioned with its focused offering.  <\/p>\n<p>The company intends to offer 21.74 million class A shares through its IPO. Toast will raise about $868 million, and plans to list on the New York Stock Exchange under the ticker TOST.<\/p>\n<p><strong>Here are five things to know about Toast ahead of the offering.<\/strong><\/p>\n<h6><span class=\"ez-toc-section\" id=\"A_fragmented_market\"><\/span>A fragmented market<span class=\"ez-toc-section-end\"><\/span><\/h6>\n<p>Toast is betting that it continues to win restaurant customers by offering a portfolio of easy-to-use, modern technology solutions that work well with one another. <\/p>\n<p>\u201cDespite how large the industry is, restaurants often lag behind other industries in transitioning to modern, cloud-based platforms,\u201d founders Aman Narang, Steve Fredette, and Jonathan Grimm said in a letter in the company\u2019s prospectus. Their early conversations with restaurants found that many owners were frustrated by legacy systems that didn\u2019t play nicely together and that the industry was \u201clacking a true technology leader,\u201d something Toast hopes to be with its restaurant-focused product.<\/p>\n<p>\u201cThe technology has the ability to work well for independent chains and \u2018mom-and-pop\u2019 concepts as well as the scalability for larger regional, national and global branded concepts,\u201d MKM Partners analyst Rohit Kulkarni wrote in a note to clients.<\/p>\n<p>Toast cites statistics indicating there are about 860,000 restaurant locations in the U.S. and that these businesses spent roughly $25 billion combined on technology in 2019. The company anticipates that this spending could rise to $55 billion by 2024. <\/p>\n<div id=\"cx-membership-tile\"><\/div>\n<p>Restaurants were hit hard by the pandemic, but they also became more motivated to upgrade their technology in order to better support online ordering, contactless payments, and other trends that became more popular during the COVID-19 crisis, according to Toast. <\/p>\n<h6><span class=\"ez-toc-section\" id=\"The_opportunity_ahead\"><\/span>The opportunity ahead<span class=\"ez-toc-section-end\"><\/span><\/h6>\n<p>Toast outlines a number of growth strategies, including geographic expansion. <\/p>\n<p>\u201cWe believe that there are significant opportunities to further increase our revenue by expanding internationally,\u201d the company said in its prospectus, though it conceded that such expansion would introduce Toast to new, local competitors.<\/p>\n<p>\u201cGiven the fierce competition in the U.S. integrated PoS market, Toast will likely need to expand beyond its core markets (e.g., to larger enterprises, other verticals, international) to maintain the strong growth trajectory it has enjoyed to date,\u201d MoffettNathanson analyst Lisa Ellis wrote in a note to clients. <\/p>\n<p>Toast also sees room to sell its existing customers more services. Customers \u201cincreasingly\u201d have been adopting Toast\u2019s \u201cfull suite of products,\u201d per the prospectus, but the company listed among its business risks that it isn\u2019t sure whether customers will continue signing up for this wider package at current rates. Another goal for the company is getting existing customers to deploy Toast technology across all locations, since some clients start with only a subset. <\/p>\n<h6><span class=\"ez-toc-section\" id=\"Growing_revenues_widening_losses\"><\/span>Growing revenues, widening losses<span class=\"ez-toc-section-end\"><\/span><\/h6>\n<p>The company generated $704 million in revenue during the first six months of 2021, up from $344 million in the first six months of 2020. Toast brings in revenue through several sources, including sub<a href=\"https:\/\/buradabiliyorum.com\/en\/category\/download-scripts-themes-apps\/\" data-internallinksmanager029f6b8e52c=\"9\" title=\"Download Scripts &amp; Themes &amp; Apps\" target=\"_blank\" rel=\"noopener\">script<\/a>ion offerings, fintech offerings like payments, hardware, and professional services.<\/p>\n<p>The company lost $235 million in the first six months of 2021, whereas it lost $125 million in the first six months of 2020.<\/p>\n<h6><span class=\"ez-toc-section\" id=\"Get_paid\"><\/span>Get paid<span class=\"ez-toc-section-end\"><\/span><\/h6>\n<p>Toast acknowledges the unpredictability of payments revenue in discussing the potential risks to its business. <\/p>\n<p>The company generates payments revenue both as a percentage of volume and through a flat fee, so its revenue here depends on how much volume a restaurant sends through Toast\u2019s platform. <\/p>\n<p>\u201cThis amount may vary, depending on, among other things, the success of our customers\u2019 restaurant locations, the proportion of our customers\u2019 payment volumes processed through our platform, ticket size, consumer spending levels in <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/general\/\" data-internallinksmanager029f6b8e52c=\"3\" title=\"General\" target=\"_blank\" rel=\"noopener\">general<\/a>, and overall economic conditions,\u201d the company said in its prospectus. <\/p>\n<p>Further, the company tends to generate more revenue when people use debit cards or engage in online spending. These were two popular ways to pay during the pandemic as people flocked to less risky payment methods and avoided leaving their homes as much, but Toast anticipates that credit and card-present transactions will increase on a relative basis going forward. <\/p>\n<h6><span class=\"ez-toc-section\" id=\"The_other_kind_of_takeout\"><\/span>The other kind of takeout<span class=\"ez-toc-section-end\"><\/span><\/h6>\n<p>Forget restaurant takeout. Toast itself might be a takeout candidate, according to Bernstein analyst Harshita Rawat. <\/p>\n<p>She sees the company as a possible fit for PayPal Holdings Inc.<br \/>\n        PYPL,<br \/>\n        <bg-quote field=\"percentchange\" format=\"0,000.00%\" channel=\"\/zigman2\/quotes\/208054269\/composite\" class=\"negative\">-0.16%<\/bg-quote><span>,<\/span><br \/>\n       which has been looking to gain a foothold in the world of physical commerce. \u201cIn-store spend has been the Achilles Heel for PayPal for many years, and its five or so attempts so far have not yield material results,\u201d she wrote. <\/p>\n<p>Toast also might be an \u201cattractive candidate\u201d for Dutch payments powerhouse Adyen NV<br \/>\n        ADYEN,<br \/>\n        <bg-quote field=\"percentchange\" format=\"0,000.00%\" channel=\"\/zigman2\/quotes\/205351021\/delayed\" class=\"positive\">+0.82%<\/bg-quote><span>,<\/span><br \/>\n       she continued, \u201calthough Adyen has pursued an organic strategy so far.\u201d<\/p>\n<p>On the other hand, Rawat thinks that Toast could assume the role of the \u201cconsolidator\u201d among restaurant-technology players by scooping up smaller and focuses software companies.<\/p><\/div>\n<\/div><\/div>\n<p><\/p>\n<div class=\"byline article__byline\">\n<p>    <span>By<\/span><\/p>\n<div class=\"author mobile-scrim hasMenu\" data-scrim='{\"type\":\"author\",\"header\":\"Emily Bary\",\"subhead\":\"The Wall Street Journal\",\"list\":[{\"type\":\"link\",\"icon\":\"bio\",\"url\":\"https:\/\/marketwatch.com\/author\/emily-bary\",\"text\":\"Biography\"},{\"type\":\"link\",\"icon\":\"twitter\",\"url\":\"https:\/\/twitter.com\/emilybary\",\"text\":\"@emilybary\"},{\"type\":\"link\",\"icon\":\"email\",\"url\":\"http:\/\/www.marketwatch.com\/news\/mailto:ebary@marketwatch.com\",\"text\":\"ebary@marketwatch.com\"}]}' itemscope itemprop=\"author\" itemtype=\"http:\/\/schema.org\/Person\">\n                <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/marketwatch.com\/author\/emily-bary\"><\/p>\n<h4 itemprop=\"name\" aria-label=\"links to  author page\"><span class=\"ez-toc-section\" id=\"Emily_Bary\"><\/span>Emily Bary<span class=\"ez-toc-section-end\"><\/span><\/h4>\n<p><\/a>\n          <\/div>\n<\/div>\n<p><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<blockquote><p><strong><span style=\"color: #ff6600;\">If you liked the article, do not forget to share it with your friends. Follow us on\u00a0<span style=\"color: #ff0000;\"><a style=\"color: #ff0000;\" href=\"https:\/\/news.google.com\/publications\/CAAqBwgKMLG0nwswvr63Aw\" target=\"_blank\" rel=\"nofollow noopener noreferrer\">Google News<\/a><\/span>\u00a0too, click on the star and choose us from your favorites.<\/span><\/strong><\/p><\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\">For forums sites go to <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/forum.buradabiliyorum.com\/\" target=\"_blank\" rel=\"noopener\">Forum.BuradaBiliyorum.Com<\/a><\/span><\/strong><\/p>\n<\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\"><strong>If you want to read more <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/news\/\" data-internallinksmanager029f6b8e52c=\"2\" title=\"News\" target=\"_blank\" rel=\"noopener\">News<\/a> articles, you can visit our <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/en.buradabiliyorum.com\/news\/\" target=\"_blank\" rel=\"noopener\">News category.<\/a><\/span><\/strong><\/p>\n<\/blockquote>\n<p><span style=\"color: black;\"><a style=\"color: #ff9900;\" href=\"http:\/\/www.marketwatch.com\/news\/story.asp?guid=%7B20C05575-04D4-B545-7646-80FE738E2104%7D&#038;siteid=rss&#038;rss=1\" target=\"_blank\" rel=\"noopener\">Source<\/a><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>&#8220;#IPO Report: Toast IPO: 5 things to know about the restaurant-focused payments player&#8221; IPO values company at about $20 billion A previous version of this report incorrectly referred to Toast\u2019s volume numbers instead of its revenue. It has been corrected. Toast Inc. could be rolling in dough as the maker of restaurant-focused payment software heads&#8230;<\/p>\n","protected":false},"author":1,"featured_media":342567,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"fifu_image_url":"","fifu_image_alt":"","footnotes":""},"categories":[70897],"tags":[],"class_list":["post-342566","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news"],"_links":{"self":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/342566","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/comments?post=342566"}],"version-history":[{"count":0,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/342566\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media\/342567"}],"wp:attachment":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media?parent=342566"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/categories?post=342566"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/tags?post=342566"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}