🍞 Is Toast Better Than Sliced Bread?
American Airlines & Carnival makes gains. Pfizer gives an important update.
Today's Market Terminology: Bear Market
A bear market is when a market experiences prolonged price declines. It typically describes a condition where prices fall 20% or more from recent highs
Here's what you need to know before the US markets open.
What to expect in today's market 🕒
Concentrix Corporation Earnings (CNXC)
FedEx Corp. Annual General Meeting (FDX)
Get more out of Trove!
🍷 Toast: Restaurants Raising One?
About 8-9 years back, no VC was even willing to look at Toast Inc. (TOST). Today, it is valued at over $30B, and VCs are rueing the missed opportunity (and those that came in are wondering why they didn’t get in on the action sooner). This restaurant technology provider is just getting started.
Better Late Than Never
The early part of the pandemic was brutal on the restaurant industry, and Toast suffered directly. It slashed half its workforce in April 2020. As the year progressed and restaurants shifted to takeaways, demand shot through the roof. By Q3 2020, Toast’s revenue growth even surpassed pre-pandemic levels!
IPO was a natural next step, and the company went public last week. Shares were priced at $34-$36, listed at $40, and shot up by 56% at the end of the first day. That gave Toast a market value of $31B, a 6x jump from February 2020.
Toast’s Annual Recurring Revenue (ARR) rose 118% YoY in Q2 to $494M. At the same time, owing to increased sales, marketing, and R&D expenditure, the company’s loss saw a steep increase from last year’s $53.7M to $135.5M.
Toast has been continually updating its product to cater to new requirements from its customers throughout the pandemic and is actively looking to capture the rest of the US market. Today, it serves 47.5K restaurants.
So how did Papa fare? His small investment in his former employees is today worth almost as much as Bessemer’s $3.3B stake. He’s busy raising a toast to that!
Market Reaction
TOST ended at $55.78, down 5.46%.
Newsworthy 📰
Prediction: Pfizer CEO Albert Bourla predicts normal life will return within a year; adds we may need annual covid shots (PFE -0.57%)
Tiff: American Airlines pilots want managers replaced over flight disruptions (AAL +2.34%)
Rebound: Carnival says cruise bookings for 2022 second-half above pre-pandemic levels (CCL +3.04%)
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