Bennett Richard Kent, a director at Toast, Inc. (NYSE:TOST), has reported a series of stock transactions involving the company's Class A Common Stock on September 4, 2024. The transactions were disclosed in a recent filing with the Securities and Exchange Commission.
According to the filing, a significant number of shares were converted from Class B Common Stock to Class A Common Stock and subsequently distributed. Specifically, 1,661,808 shares were converted by Bessemer Venture Partners IX, L.P., and 1,318,425 shares were converted by Bessemer Venture Partners IX Institutional, L.P. Following these conversions, a total of 2,980,233 Class A Common Stock shares were distributed to various partners and members, reflecting their pro rata interests.
The distributions of the Class A Common Stock shares were executed for no consideration and in accordance with the exemption provided by Rules 16a-13 and 16a-9 of the Securities Exchange Act of 1934. These rules facilitate the distribution of shares in certain situations without the transactions being considered as a transfer of beneficial ownership.
Kent, as a partner at Bessemer Venture Partners, holds an indirect, passive economic interest in the shares held by the Bessemer funds due to his interest in the general partnerships and certain limited partnership interests. He has disclaimed beneficial ownership of these securities, except to the extent of his pecuniary interest therein.
The filing also noted that Kent received 9,712 shares of Class A Common Stock related to equity grants from Toast, Inc. Furthermore, he received 89,194 shares as part of pro rata distributions-in-kind from various Bessemer and Deer funds.
Toast, Inc., headquartered in Boston, Massachusetts, operates in the computer processing and data preparation sector. The company's Class A Common Stock is traded on the New York Stock Exchange under the ticker symbol TOST.
Investors and market watchers often scrutinize the transactions of company insiders for insights into their perspective on the company's prospects. However, the distributions reported by Kent were part of a broader allocation by investment funds and not direct market transactions, thus providing a different context to the ownership changes.
In other recent news, Toast Inc. posted impressive second-quarter 2024 results, demonstrating robust growth and surpassing expectations. The company added a record-breaking 8,000 net new locations, leading to a 29% year-over-year increase in recurring gross profit streams. Adjusted EBITDA reached $92 million, marking a solid 27% margin on these profit streams. Toast achieved GAAP income profitability earlier than anticipated and has subsequently raised its full-year financial outlook.
Additionally, Toast reported a 35% year-over-year increase in SaaS ARR and a 24% rise in payments ARR. Fintech gross profit saw a 23% increase in the second quarter, with GPV rising to $40.5 billion, indicating a 26% year-over-year growth. The company's full-year outlook has been adjusted to reflect 27% to 29% growth in fintech and subscription gross profit, along with adjusted EBITDA projections of $285 million to $305 million.
Despite a slight increase in churn rate and a 3% decline in GPV per location in Q2, Toast plans to increase investment in key business areas in the second half of the year. The company's commitment to investing in AI for customer value creation and the ongoing execution of their business strategy positions it well for future developments.
InvestingPro Insights
In light of the recent stock transactions involving Toast, Inc. (NYSE:TOST), investors may find additional context in the company's financial health and market performance. According to InvestingPro data, Toast has experienced a robust revenue growth of 32.19% over the last twelve months as of Q2 2024, underlining the company's expanding operations. Despite not being profitable over the last twelve months, analysts are optimistic, predicting that Toast will turn profitable this year, which is reflected in the company's market capitalization of $13.09 billion.
An InvestingPro Tip highlights that three analysts have revised their earnings estimates upwards for the upcoming period, indicating potential confidence in the company's future performance. Furthermore, Toast's liquid assets surpass its short-term obligations, suggesting a strong liquidity position that may reassure investors of the company's ability to meet its immediate financial obligations.
For those interested in a deeper dive, InvestingPro offers additional tips on Toast, Inc. For instance, while Toast suffers from weak gross profit margins, currently at 22.66%, and trades at a high Price / Book multiple of 10.35, the company's stock price movements have been quite volatile, which could present opportunities for investors with a higher risk tolerance. It's also worth noting that Toast does not pay a dividend to shareholders, which may influence the investment strategy for those seeking regular income.
For more InvestingPro Tips on Toast, Inc., investors can visit https://www.investing.com/pro/TOST, where a total of 9 additional tips are available, providing a comprehensive analysis of the company's financial standing and market potential.
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