Toast Investors Will Love Looking at This 1 Important Metric
Restaurant-technology company Toast (NYSE: TOST) is bucking a negative trend in the financial technology (fintech) space. Other fintech players such as DLocal and even are seeing profit margins go down due to fierce competition, which slowly but surely pressures profits as they lower prices to keep customers and spend more to attract new ones.
Of course, that's an oversimplification. Fintech is a broad term, encompassing more than just payment processing. But when it comes to that segment, there's little a company can do to stand out from the competition. Therefore, it's natural to see companies lose pricing power in this area.
However, a company can stand out when it comes to offering fintech software services in addition to processing payments. It seems like this is what's driving strong results for Toast -- after all, the company just added 6,000 net new locations in a single quarter. And there's a related metric here that investors will love looking at.
Source Fool.com
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