Boston-based restaurant software company Toast has received a valuation worth nearly $33 billion as it made its debut on the New York Stock Exchange Wednesday. The company’s shares skyrocketed 63 percent higher as investors looked to new tech stocks to invest in. Shares for Toast opened at $65.26. Its IPO price was $40 a share.
Toast, Inc. assists restaurant enterprises by offering them software that sets up marketing campaigns, expedites payroll tasks, manages point of sale and online orders and contactless payments, and more.
As online food deliveries have become more popular during the pandemic, Toast has catered more to online meal delivery services akin to DoorDash, Grubhub, and Uber Eats.
The company was founded in 2011, with major backing from American Express Ventures and Tiger Global Management, among others.
The restaurant software provider has formed partnerships with around 48,000 restaurant locations, processing over $38 billion in payments in the 12 month period ending on June 30.
In February of last year, Toast had a valuation of $5 billion during a funding round that took place right before the pandemic began. But after that, restaurants saw plunging revenues because of COVID-19 restrictions and lockdowns.
Toast reacted by diversifying its offerings to adapt to the dining behavior shifts. First, it developed software solutions to address contactless ordering and payments, flat-fee delivery services, and curbside takeout notifications.
The company had a $235 million net loss the first six months of this year, just under double last year’s net loss of $125 million. However, its revenue was more than double compared to the previous period, reaching $704 million.
During its initial public offering, Toast sold 21.7 million shares and raised nearly $869.6 million. The lead underwriter’s for the company’s IPO were J.P. Morgan, Goldman Sachs, and Morgan Stanley.