Restaurant SaaS Provider Toast (TOST) Valuation Seen as High as $16.5B in IPO

Restaurant POS service Toast, Inc. (NYSE: TOST) updated its IPO filing to indicate that it will be offering 21,739,131 shares at $30-$33. All the shares will be offered by the company.

Based on the 499.3 million Class A and B shares to be outstanding after the offering, a pricing at the top end of the range suggests a valuation of approximately $16.5 billion. This is below the $20 billion valuation prior reports indicated.

The offering is being led by Goldman Sachs, Morgan Stanley, and JP Morgan.

As of June 30, 2021, approximately 48,000 restaurant locations across approximately 29,000 customers, processing over $38 billion of gross payment volume in the trailing 12 months, partnered with Toast to optimize operations, increase sales, engage guests, and maintain happy employees.

The company's revenue grew 24% year-over-year from $665 million in the year ended December 31, 2019 to $823 million in the year ended December 31, 2020 and 105% period-over-period from $344 million in the six months ended June 30, 2020 to $704 million in the six months ended June 30, 2021. ARR grew 77% year-over-year from $184 million as of December 31, 2019 to $326 million as of December 31, 2020 and 118% period-over-period from $227 million as of June 30, 2020 to $494 million as of June 30, 2021. During the years ended December 31, 2019 and 2020, they incurred net losses of $209 million and $248 million, respectively, and generated Adjusted EBITDA of $(172) million and $(94) million, respectively. During the six months ended June 30, 2020 and 2021, they incurred net losses of $125 million and $235 million, respectively, and generated Adjusted EBITDA of $(86) million and $14 million, respectively.

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