ServiceTitan Shares Surge In First-Day Trading

Shares of ServiceTitan surged 42% in first-day trading on the Nasdaq Thursday, in what is likely to be the last large IPO by a venture-backed unicorn this year.

The Glendale, California-based company, which offers a platform for building services professionals, priced its IPO at $71 per share late Wednesday. That was above the projected range of between $65 and $67 and set an initial valuation for the company of around $6.3 billion.

Trading under the symbol TTAN, the company had a market capitalization of around $7.6 billion as shares closed at $101 on Thursday.

The offering caps what’s been a relatively slow year for tech IPOs. Overall, the first half of the year was brisker, with large well-received offerings from discussion platform Reddit, connectivity technology developer Astera Labs, and data security provider Rubrik.

However, tech offering activity slowed down in the latter half of 2024, with U.S. unicorns overwhelmingly opting against filing to go public. ServiceTitan, which has long been a favorite on lists of likely IPO candidates, was the exception, submitting its S-1 in mid-November.

More than a decade’s worth of funding

Founded in 2012, the company had previously raised at least $1.5 billion from a long list of venture and private equity backers. Per the S-1, the largest holders of ServiceTitan’s Class A common stock include Iconiq Growth (24%), Bessemer Venture Partners (13.9%), Battery Ventures (7.5%) and TPG (6.4%).

ServiceTitan was reportedly valued at $9.5 billion following a 2021 funding round, near the market peak.

As for financial performance, the company’s financials show growing revenue paired with smaller net losses. For the six-month period ending July 31, ServiceTitan pulled in $348 million in revenue, up 26% from the same period in 2023. Net loss for that period totaled $92 million in 2024, down 12% from a year ago.

Much of the loss stems from high spending on sales and marketing ($116 million for the six months ending July 31) and on R&D ($121 million for the same period). Not including these or administrative expenses, ServiceTitan says its gross profit was $233 million.

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Illustration: Dom Guzman