ServiceTitan begins trading on Nasdaq following initial public offering | Wilnesh News

ServiceTitan made its debut on Nasdaq on Thursday. The company that provides cloud software to contractors raised about $625 million in its initial public offering, and its shares rose 42%.

The company, which trades under the ticker TTAN, sold shares on Wednesday at $71 a share, above the expected range. The stock opened at $101. Based on its IPO price, the company has a market capitalization of approximately $6.3 billion.

ServiceTitan’s IPO is notable because few technology companies have jumped into the public markets since late 2021, when rising interest rates and soaring inflation forced investors out of risky assets. ServiceTitan is the first major venture-backed technology company to go public since its inception Rubrick’s Debuts in April. One month before that, Reddit Start trading on the New York Stock Exchange.

Other companies have said they may launch initial public offerings soon. Chipmaker Cerebras applied to go public in September, but the process was slowed by a review by the U.S. Treasury Department’s Committee on Foreign Investment (CFIUS). Last month, online lending company Klarna said it had confidentially filed IPO documents with the U.S. Securities and Exchange Commission.

While late-stage startups have been reluctant to make big leaps into the public markets, investor interest in technology continues to grow. On Wednesday, the Nasdaq Composite closed above 20,000 for the first time. Tesla, letter, Amazon and Yuan All closed at record highs, with Apple just shy of its all-time high.

ServiceTitan reportedly agreed to “compound interest ratchet” terms as part of a 2022 funding round that values ​​the company at $7.6 billion its prospectus. Investors at venture capital firm Meritech Capital wrote in a note that the decision “allows ServiceTitan to go public as quickly as possible to minimize the impact of dilution.” Blog article.

ServiceTitan, founded in 2007 and headquartered in Glendale, Calif., targets businesses in the plumbing, landscaping, electrical and other industries, and its software is used to manage leads, record calls, generate quotes and schedule jobs. As of Jan. 31, the company had about 8,000 customers with annual billings exceeding $10,000.

ServiceTitan’s preliminary results for the October quarter showed revenue of $198.5 million and a net loss of about $47 million. This represents revenue growth of approximately 24% annually, the highest growth rate since mid-2023. But the company’s net loss widened from about $40 million in the October quarter.

Bessemer Venture Partners, TPG and Iconiq Growth are the company’s largest shareholders, along with founders Vahe Kuzoyan and Ara Mahdessian.

At the IPO price, ServiceTitan is valued at just over 9 times trailing 12-month revenue. The WisdomTree Cloud Computing Fund, a basket of more than 60 publicly traded cloud stocks, currently trades at about 6.4 times revenue.