Toast expands to Canada, Ireland, and the UK
Fintech Headlines for May 5, 2023: Toast expands to Canada, Ireland, and the UK, Shift4 Payments makes another acquisition, and BILL is approaching a billion in revenue
Hi!
Welcome to the “Popular Fintech” newsletter! Yesterday, the U.S. Department of Labor reported that the U.S. economy added 253,000 jobs in April, way above economists’ estimate of 180,000. Apparently, the U.S. economy is not collapsing and the markets rallied. It felt great to finally see some green numbers! On this positive note, let's talk about
Toast expanding to Canada, Ireland, and the United Kingdom
Shift4 Payments announcing another acquisition, and
BILL approaching a BILLion in annual revenue
Toast Expands to Canada, Ireland, and the United Kingdom
In just a month, Toast (NYSE: TOST), the all-in-one digital platform for restaurants, launched in three new markets, including Canada, Ireland, and the United Kingdom. Toast's technology suite includes point of sale, software, payments processing, handheld mobile POS devices, kitchen display systems, cloud-based reporting, and integrations with best-in-class technology providers. Toast’s platform has been used by around 79,000 restaurant locations in the United States, and processed $91.7 billion in payments on behalf of its clients in 2022.
Last month Toast also launched Toast Tables, which allows restaurants to manage their reservation and waitlist processes. With Toast Tables, restaurants can accept online reservations, manage table assignments, track waitlists, and send text message notifications to customers. The feature also integrates with Toast's other restaurant management tools, such as online ordering and kitchen display systems, to provide a seamless experience for restaurant owners and their customers. Toast will report its first quarter 2023 results on Tuesday, May 9, 2023.
Toast Tables. Image source: Toast
✔️ Toast Enters Canada On A Mission to Help Restaurants Thrive
✔️ Toast Launches Digital Technology Platform for Hospitality Businesses in Ireland
✔️ Toast Brings Digital Restaurant Technology Platform to the UK
✔️ Introducing Toast Tables: Integrated Reservation and Waitlist Management for Restaurants
Shift4 Payments Makes Another Acquisition
Shift4 Payments (NYSE: FOUR), the payments processor serving the hospitality industry, announced the acquisition of Focus POS, a point-of-sale (POS) software company that supports over 10,000 restaurants. Focus POS does not have a direct payment processing capability and instead relies on several vendors, representing an opportunity for Shift4 Payments to add up to $15 billion in annual payments volume. By acquiring Focus POS, Shift4 plans to bundle payment processing capabilities and convert the installed base of 10,000+ merchants to Shift4 payments and eventually migrate them to SkyTab.
Shift4's approach represents a low-cost way to “acquire established, high-quality integrated payment restaurant customers”, commented Jared Isaacman, Shift4 Payments founder and CEO, on the acquisition. The acquisition is expected to become a revenue and volume contributor in 2024 as the company pivots Focus POS towards a payments and software-as-a-service (SaaS) strategy. Shift4 Payments reported $22.3 billion in end-to-end payment volume in the first quarter of 2023, and expects to process $104 billion to $110 billion for the full year 2023, which will represent a 45% to 54% growth compared to 2022.
Source: Shift 4 Payments
✔️ Shift4 Payments Q1 2023 Shareholder Letter
✔️ Shift4 Stock Plunges On Short Seller Blue Orca's Report
✔️ CEO Jared Isaacman Issues Response to Short Seller Report
✔️ Shift4 Payments CEO on health of consumer, payment trends and Blue Orca
BILL Is Approaching a BILLion in Annual Revenue
BILL (NYSE: BILL), a leading provider of cloud-based software that simplifies, digitizes, and automates back-office financial processes for SMBs, reported its third quarter Fiscal Year 2023 (calendar first quarter 2023) on Thursday. Total revenue increased 63% YoY to $272.6 million, driven by 52% YoY growth in Transaction fees and 28% YoY growth in Subscription fees. The gross profit amounted to $223.7 million, representing an 82.1% gross profit margin, compared to the gross profit of $129.6 million and a 77.6% gross profit margin a year ago. GAAP net loss was $31.1 million and non-GAAP net income was $58.7 million, compared to a GAAP net loss of $86.7 million and a non-GAAP net loss of 8.7 million a year ago.
The company guided for $1,039.5 to $1,042.5 million in total revenue for the full fiscal year 2023 (the year ending June 30, 2023), which would represent a 62% growth compared to the fiscal year 2022. Non-GAAP net income is expected to be $170.4 to $173.4 million, or $1.46 - $1.48 per diluted share. At the end of the quarter, the company served 455,300 businesses, including 197,900 BILL standalone customers, 27,100 businesses using the expense management service Divvy, and 230,300 subscribers using the mobile invoicing and expense tracking service Invoice2go. In 2021, BILL acquired Divvy for $2.5 billion, and Invoice2go for $625 million.
✔️ BILL Reports Third Quarter Fiscal Year 2023 Financial Results
✔️ Bill.com stock rallies 15% after earnings, outlook beat
✔️ Bill.com stock jumps on strong earnings, revenue beat
It is fascinating to follow the rivalry between Shift4 Payments (NYSE: FOUR) vs. Toast (NYSE: FOUR), and this year, Shift4 Payments is winning, if you ask Mister Market. Thus, Shift4 Payments stock is up 18.73% for the year, outperforming both Toast and NASDAQ Composite.
Vice President, Investor Relations
@ Shift4 Payments
Remote, United States
Senior Director, Product Marketing
@ Toast
Remote, United States
Senior Director of Product, Hardware Business Systems
@ Toast
Remote, United States
Vice President, Product and Customer Marketing
@ BILL
San Jose, CA, United States
Senior Director of Growth Data Science and Analytics
@ BILL
San Jose, CA, United States
That’s it for today! Thank you for reading and see you on Monday!
Jevgenijs
Cover image: Microsoft Bing Image Creator, Powered by DALL·E, prompt “a man waves a British flag, looks excited, pop art style”
Disclaimer: Information contained in this newsletter is intended for educational and informational purposes only and should not be considered financial advice. You should do your own research or seek professional advice before making any investment decisions.