ServiceTitan Surges with Nasdaqq Debut
Deal News | Dec 12, 2024 | MuckerLab LLC
In a high-profile tech IPO event, ServiceTitan, a maker of software solutions for tradespeople, debuted on the Nasdaq, witnessing a significant surge in stock value soon after its launch. The IPO was priced at $71 per share, yet the stock opened at $101 and hovered around $100 later in the day, reflecting a 42% increase. The significant interest in ServiceTitan stems from its innovative CRM platform that optimizes operations for electricians, plumbers, and landscapers, among others. Founded in 2012 by Ara Mahdessian and Vahe Kuzoyan in Glendale, California, ServiceTitan has yet to achieve profitability. Their recent financial disclosures revealed $685 million in revenue with a net loss of $183 million for the past year. Nonetheless, the company demonstrates positive growth with a 31% improvement in the year-over-year net loss. At the IPO price, ServiceTitan was valued at approximately $6.3 billion and successfully raised around $625 million from the public offering of 8.8 million shares. The IPO's impressive performance is notable given that 2024 has been a quiet year for tech IPOs, signaling an increasing revival in the IPO market dynamics.
Sectors
- Technology
- Financial Markets
- Construction Services
Geography
- United States – ServiceTitan is based in Glendale, California, and the IPO took place on the Nasdaq, a major American stock exchange, highlighting the company's US-centric operations and market debut.
Industry
- Technology – ServiceTitan develops software for tradespeople, categorizing it within the technology sector due to its focus on software development and CRM systems for business management.
- Financial Markets – The IPO of ServiceTitan and its subsequent trading on Nasdaq are activities directly related to financial markets, indicating the process of capital raising and public equity trading.
- Construction Services – ServiceTitan's products cater primarily to tradespeople in construction-related fields, such as electricians and plumbers, making it relevant to the construction services industry.
Financials
- $71 – Initial offering share price per TTAN share.
- $101 – Opening share price per TTAN on Nasdaq, reflecting a sharp increase from the IPO price.
- 42% – The percentage increase of ServiceTitan's share price from the IPO price to the opening price.
- $7.5 billion – The market capitalization of ServiceTitan according to midday trading on its IPO day.
- $685 million – ServiceTitan's revenue for the 12-month period ending on July 31, 2024.
- 24% – Year-over-year revenue growth for ServiceTitan for the three months ending July 31, 2024.
- $183 million – ServiceTitan's net loss for the 12-month period ending on July 31, 2024.
- $625 million – The total amount raised by ServiceTitan from its public offering.
- 8,800,000 – Number of shares available in ServiceTitan's IPO.
- $6.3 billion – ServiceTitan's valuation at the IPO price.
Participants
| Name | Role | Type | Description |
|---|---|---|---|
| ServiceTitan | Target Company | Company | ServiceTitan provides software solutions aimed at optimizing operations for tradespeople, recently going public with an IPO on Nasdaq. |
| MuckerLab LLC | Private Equity Firm | Company | MuckerLab LLC is a private equity firm involved in backing ServiceTitan's IPO. |
| Nasdaq | Stock Exchange | Company | Nasdaq is the stock exchange where ServiceTitan's shares are being publicly traded. |
| Yahoo Finance | Data Source | Company | Yahoo Finance provided the market cap data for ServiceTitan. |
| CNBC | Media Outlet | Company | CNBC reported on ServiceTitan's IPO share pricing and valuation. |
| Ara Mahdessian | Co-Founder | Person | Ara Mahdessian is a co-founder of ServiceTitan, established in 2012. |
| Vahe Kuzoyan | Co-Founder | Person | Vahe Kuzoyan is a co-founder of ServiceTitan, established in 2012. |
| Bessemer Venture Partners | Investor | Company | Bessemer Venture Partners is one of ServiceTitan's significant shareholders. |
| TPG | Investor | Company | TPG is a major investor in ServiceTitan, holding a significant share. |
| Iconiq Growth | Investor | Company | Iconiq Growth is among the key investors in ServiceTitan's business. |
| Securities and Exchange Commission (SEC) | Regulatory Authority | Government | The SEC is the regulatory body with which ServiceTitan filed its S-1 for the IPO. |