Toast Inc. (NYSE: TOST) skyrocketed 63% in its New York Stock Exchange debut on Wednesday. Shares began trading at USD65.26 after being priced at USD40 late Tuesday. Toast is now trading under ticker symbol TOST.
The restaurant technology provider managed to raise approximately USD870 Million in its IPO, with shares selling for USD40 each. The company revealed it had originally anticipated the offering to price at USD34 to USD36. Nevertheless, once the stock opened above its expected range, the market cap reached USD32.5 Billion.
The Massachusetts based company provides software used by restaurant customers to place online orders as well as in person or over the phone orders. Furthermore, restaurants can use the data collected by the app to build loyalty and marketing programs.
Following a rough patch at the start of the pandemic, the company began to scale once again, with revenue rising 24% throughout all of 2020 to USD823.1 Million. In the second quarter of 2021, revenue shot up to USD424.7 Million, though most of that is from financial technology solutions meaning fees paid by customers for payment transactions. In the end, Toast’s total gross margin was 21% in the second quarter, below the average software company’s cut.
“When we look at the delta variant and Covid in general, we feel the industry has been battle tested with the Covid pandemic,” CEO Chris Comparato said on Wednesday. “While delta may dampen things, this industry is in recovery and we couldn’t be more excited to lead the charge ahead as the industry recovers and restaurants start to thrive again.”