Toast Inc. (NYSE:TOST) Chief Revenue Officer, Jonathan Vassil, has recently sold a significant portion of his holdings in the company. According to the latest filings, Vassil sold 4,780 shares of Class A Common Stock on October 2, 2024, at an average price of $27.765 per share, resulting in a total transaction value of approximately $132,716.
The sale was conducted to cover tax withholding obligations related to the vesting and settlement of Restricted Stock Units (RSUs), as noted in the footnotes of the filing. This type of transaction is often required and does not necessarily indicate a discretionary trade by the reporting person.
In addition to the sale, Vassil also acquired shares through the vesting of RSUs. The RSUs, which convert into Class A Common Stock on a one-for-one basis upon vesting, did not involve any monetary transaction on the acquisition dates of October 1, 2024. Vassil acquired 4,748 and 4,986 shares on this date through the vesting of RSUs, with the footnotes indicating that these units will vest in sixteen equal quarterly installments following April 1, 2023, and April 1, 2024, respectively.
Following these transactions, Vassil's ownership in the company has seen changes, but the specifics regarding his total holdings post-transaction were not disclosed in the dollar amounts. Investors typically monitor such filings for insights into executive confidence and company health, although transactions related to tax obligations are common and not necessarily indicative of the executive's outlook on the company's future performance.
Toast Inc., headquartered in Boston, MA, operates within the computer processing and data preparation sector, providing technology solutions to the restaurant industry.
Investors and stakeholders in Toast Inc. continue to keep an eye on insider transactions as they maintain their positions in the company's stock.
In other recent news, Toast Inc. reported strong second-quarter 2024 results, surpassing expectations with significant growth in key financial metrics. The company added a record 8,000 net new locations, contributing to a 29% year-over-year increase in recurring gross profit streams. Adjusted EBITDA reached $92 million, indicating a 27% margin on these profit streams. The company achieved GAAP income profitability sooner than anticipated and based on this robust performance, Toast has raised its full-year financial outlook.
Recurring gross profit grew by 29% year-over-year to $344 million, and the company reported a 35% year-over-year increase in SaaS ARR and a 24% increase in payments ARR. Full-year outlook has been raised to reflect 27% to 29% growth in fintech and subscription gross profit, and adjusted EBITDA projections of $285 million to $305 million. Toast plans to increase investment in key business areas in the second half of the year.
Despite a slight increase in churn rate, now slightly above 10%, the company expects the impact on ARR to remain low. Toast's core U.S. SMB and mid-market business contributed significantly to the net additions. The company also plans to add sales capacity in international retail, indicating growth potential in international markets.
InvestingPro Insights
To provide additional context to Jonathan Vassil's recent stock transactions, it's worth examining some key financial metrics and analyst insights for Toast Inc. (NYSE:TOST). According to InvestingPro data, Toast's market capitalization stands at $15.42 billion, reflecting its significant presence in the restaurant technology sector.
The company has shown strong revenue growth, with a 32.19% increase in the last twelve months as of Q2 2024, reaching $4.386 billion. This robust top-line performance aligns with the company's expanding footprint in the restaurant industry. However, it's important to note that Toast is not yet profitable, with an adjusted operating income of -$117 million over the same period.
InvestingPro Tips highlight that Toast's stock price has shown strong returns, with a 57.92% increase over the past year. This positive momentum could be attributed to the company's revenue growth and market expansion. Additionally, analysts are optimistic about Toast's future, with an InvestingPro Tip indicating that net income is expected to grow this year, and another noting that analysts predict the company will be profitable this year.
These insights provide valuable context to Vassil's stock transactions, suggesting that while the company is not yet profitable, there are positive indicators for future growth. Investors interested in a more comprehensive analysis can find 11 additional InvestingPro Tips for Toast, offering a deeper understanding of the company's financial health and market position.
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