ServiceTitan offices in Draper, Utah.
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ServiceTitan, a company that sells software to contractors such as plumbers and roofers, filed Monday for an initial public offering on the Nasdaq under the ticker symbol “TTAN.”
The filing suggests that investors could become more interested in next-generation software companies. Just a few, including Reddit And Categorydebuted on the US public markets this year, and chipmaker Cerebras filed for an initial public offering. There were essentially no tech IPOs in 2021 or 2022 as central bankers pushed up rates to escape inflation, making investors less willing to bet on money-losing challengers.
Based in Glendale, California, ServiceTitan offers cloud software for advertising, job scheduling, shipping, producing invoices and taking payments. The company had a net loss of $35.7 million on revenue of $193 million in the quarter ended July 31, according to the filing. Sales were up about 24% year over year and quarterly losses were down from nearly $52 million.
ServiceTitan’s revenue growth will stand out to people investing in cloud stocks, who have seen interest rates fall with few new publicly traded companies in the sector. The average growth rate for Bessemer’s Nasdaq Emerging Cloud Index, the basis for the WisdomTree Cloud Computing Fund, is 16.6%.
The company was originally founded in 2007 by Ara Mahdessian and Vahe Kuzoyan, both of whose fathers were residential contractors. Although most of ServiceTitan’s customers are small and medium-sized businesses, the company has begun to focus more on selling products to large corporations and construction industry customers, according to the documents.
ServiceTitan plans to retain up to 5% equity in the IPO for eligible customers, the founders’ friends and family members, and others through a targeted equity program.
Investors include Battery Ventures, Bessemer Venture Partners, Iconiq and TPG. Iconiq itself owned 24% of the company’s Class A shares.
Competitors include Salesforce And JUICEtogether with specialized companies such as HouseCall Pro, Jobber and Workwave.
Goldman Sachs, Morgan Stanley, Wells Fargo and Citigroup are among the company’s IPO underwriters.
