Home Industry Startups ServiceTitan Soars 42% in Nasd...
Startups
Business Honor
13 December, 2024
ServiceTitan’s 42% Nasdaq debut surge raises $625 million, signaling a shift and renewed startup interest in IPOs.
Contractor-centric cloud software firm ServiceTitan soared by 42% on Nasdaq on Thursday, and its IPO brought in roughly $625 million. Under its trading name, TTAN, ServiceTitan is seeing stocks selling at $71 against an estimated range and settling at $101. Through this closing price, the service titan's market cap reads now to be around $8.9 billion.
This IPO is significant in a market where very few tech companies have gone public since late 2021, when rising interest rates and inflation reduced the appetite of investors for risky assets. ServiceTitan is the first major venture-backed tech company to debut since Rubrik in April, signaling a potential shift as investors show renewed interest in tech stocks.
ServiceTitan was founded in 2007 by co-founders Ara Mahdessian and Vahe Kuzoyan, who both hail from backgrounds with family trade businesses including plumbing and construction. The software offered by the company assists companies in the plumbing, electrical, and landscaping sectors in the areas of sales lead management, recording calls, generation of quotes, and scheduling of jobs. ServiceTitan reported having around 8,000 customers as of January 31 whose annualized billings were over $10,000.
The company posted a 24% year-over-year revenue growth for the October quarter at $198.5 million, though it posted a net loss of $47 million. However, ServiceTitan's consistent cash-flow positivity in recent quarters has been a pertinent factor in attracting investors.
As for the opening door of ServiceTitan's going public, it has really opened the door to other startups wanting to go public. Venture capitalists are upbeat, board member Nina Achadjian reports, with many viewing ServiceTitan's success as a signal that the IPO window is reopening for tech companies.