ServiceTitan (TTAN), the cloud platform born in “the trades,” priced its IPO at $71 – $4 above the top of its recently upward revised range – and raised $624.8 million on Wednesday night, Dec. 11, 2024. ServiceTitan’s stock surged to open at $101 – up $30 for a 42.3 percent jump from its IPO price – at 12:48 p.m. EST today – Thursday, Dec. 12, 2024 – on the NASDAQ. For the opening trade, the volume totaled more than 736,000 shares, NASDAQ said.
ServiceTitan’s IPO might be the last sizable IPO to get done before the year ends. The deal’s price range was raised to $65 to $67 – up from $52 to $57 initially – in an S-1/A filing early Tuesday, Dec. 10, 2024.
ServiceTitan has a market cap of $6.3 billion, based on the IPO’s above-range pricing at $71.
Goldman Sachs, Morgan Stanley, Wells Fargo Securities and Citigroup acted as the joint book-runners.
ServiceTitan, based in Glendale, California, provides an end-to-end cloud-based software platform that connects and manages a wide array of business workflows such as advertising, job scheduling and management, dispatching, generating estimates and invoices, payment processing and more.
“We designed our platform to be the operating system for the trades,” ServiceTitan said in the prospectus.
“We serve many trades, including plumbing, electrical, HVAC, garage door, pest control, landscaping and others,” ServiceTitan said in the prospectus. “In fiscal 2023, fiscal 2024 and the 12 months ended July 31, 2023, and July 31, 2024, we processed $44.9 billion, $55.7 billion, $50.6 billion and $62.0 billion of Gross Transaction Volume, or GTV, respectively. GTV represents the sum of total dollars invoiced by our customers to end customers through our platform in a given period, which is intended to be a proxy for the total revenue our customers generate from their end customers.”
“Born In The Trades”
ServiceTitan’s roots are firmly planted in the trades, Its founders, software engineers Ara Mahdessian and Vahe Kuzoyan, are the sons of trades business owners who were first-generation immigrants.
“ServiceTitan was born in the trades and built for the trades. Our founders, Ara Mahdessian and Vahe Kuzoyan, are the sons of trades business owners. They grew up watching their parents work late into the night after full days in the field — balancing the books, preparing invoices and scheduling the next day’s work — manually performing repetitive tasks that consumed their time and diverted their energy away from what they loved: serving customers and spending time with their families,” the prospectus said.
“Ara and Vahe founded ServiceTitan to provide tradespeople, like their parents, with technology that is purpose-built to help trades businesses thrive. We built our cloud-based software platform to offer end-to-end capabilities to manage complex workflows, connect key stakeholders and provide impactful industry best practices. ServiceTitan remains to this day maniacally focused on the success of our customers as we fundamentally believe that our customers’ success leads to our success.”
ServiceTitan’s revenue grew 24 percent while its net loss shrank 31 percent for the three months that ended July 31, 2024, compared with the year-ago period, according to the prospectus.
The company, founded in 2007, is not profitable. For the 12 months that ended July 31, 2024, ServiceTitan reported a net loss of $183 million on revenue of $685 million.
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