ServiceTitan’s offices in Draper, Utah.
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ServiceTitan, a company that sells software to contractors such as plumbers and roofers, filed to list on Nasdaq on Monday under the ticker “TTAN.”
The filing suggests investors may be increasingly interested in next-generation software companies. To name a few, include Reddit and scarlet lettermaking its U.S. public market debut this year, chipmaker Cerebras filed for an initial public offering. There are essentially no tech IPOs in 2021 or 2022 as central bankers raise interest rates to stave off inflation, making investors less willing to bet on loss-making challengers.
Headquartered in Glendale, California, ServiceTitan provides cloud-based software for advertising, scheduling work, scheduling, invoicing and collecting payments. According to data, in the quarter ended July 31, the company had revenue of $193 million and a net loss of $35.7 million. Filing. Revenue is up about 24% year over year, and quarterly losses have narrowed from nearly $52 million.
ServiceTitan’s revenue growth rate will be compelling for those investing in cloud stocks, as there are few new public companies in the industry and their revenue growth rates have been declining. The average growth rate of the Bessemer Nasdaq Emerging Cloud Index, which is the basis of the WisdomTree Cloud Computing Fund, is 16.6%.
The company was originally founded in 2007 by Ara Mahdessian and Vahe Kuzoyan, whose fathers were both residential contractors. While most of ServiceTitan’s customers are small and medium-sized businesses, it has begun to focus more on selling to large corporations and construction customers, the filing shows.
ServiceTitan plans to reserve up to 5% of the shares in the IPO for eligible customers, friends and family of the founders, and others through a directed share plan.
Investors include Battery Ventures, Bessemer Venture Partners, Iconiq and TPG. Iconiq alone controls 24% of the company’s A shares.
Competitors include salesperson and sapand specialist companies such as HouseCall Pro, Jobber and Workwave.
Goldman Sachs, Morgan Stanley, Wells Fargo and Citigroup are among the underwriters of the company’s IPO.
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