Service Titan offices in Draper, Utah.
Google Earth
Service Titan, a company that sells software to contractors such as plumbers and roofers, filed to go public on the Nasdaq on Monday under the ticker symbol “TTAN.”
Investors are increasingly interested in next-generation software companies, the filings show. Just a few, including Reddit And RubricIt debuted on public markets in the US this year, and chipmaker Cerebras filed for an initial public offering. There were essentially no tech initial public offerings in 2021 or 2022 as central bankers pushed interest rates toward flight inflation, making investors less willing to bet on money-losing challengers.
Based in Glendale, California, ServiceTitan offers cloud software for advertising, scheduling jobs, sending, generating invoices and taking payments. Accordingly, it posted a net loss of $35.7 million on revenue of $193 million in the quarter ended July 31. Filing. Revenue grew about 24% year-over-year, and the quarterly loss narrowed to about $52 million.
The service titan’s earnings growth rate will be significant for people investing in cloud stocks, who have seen rates drop with few new public companies in the sector. The average growth rate of Bessemer’s Nasdaq Emerging Cloud Index, the foundation of the Wisdom Tree Cloud Computing Fund, is 16.6%.
The company was originally founded in 2007 by Ara Mehdisian and Vahe Kozoyan, both of whose fathers were residential contractors. While most of the service titan’s customers are small and medium-sized businesses, it has begun to focus more on selling products to large companies and construction customers, according to the filing.
ServiceTitan plans to place 5% of the shares in the IPO through a directed share program to eligible clients, friends and family members of the founders and others.
Investors include Battery Ventures, Bessemer Venture Partners, Iconic and TPG. Iconiq itself controls 24% of the company’s Class A shares.
Competitors included. Sales force And SAPwith specialty companies such as HouseCall Pro, Jobber and Workview.
Goldman Sachs, Morgan Stanley, Wells Fargo and Citigroup are among the company’s IPO underwriters.
Look: Nasdaq CEO Adina Friedman on the impact of Trump’s policy
