ServiceTitan files for IPO

ServiceTitan files for IPO

ServiceTitanplatform for construction services professionals, is the latest heavily funded software unicorn to publicly file for a U.S. IPO.

The Glendale, California-based company, which provides cloud-based software for residential and industrial HVAC, plumbing, electrical and other field services, has filed an application S-1 Monday. Founded in 2012, the company has previously raised at least $1.5 billion from a long list of enterprise and private equity investors.

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The filing didn’t specify how much the company intends to boost in the offering or how many shares it plans to sell.

However, ServiceTitan has shed some light on its funds. For the six months ended July 31, the company generated revenues of $348 million, an increase of 26% in comparison with the same period in 2023. The net loss for the period in 2024 was $92 million, a decrease of 12 % in comparison with the previous yr.

Much of the loss is as a result of high spending on sales and marketing ($116 million for the six months ending July 31) and research and development ($121 million over the same period). Excluding these administrative costs, ServiceTitan reported gross profit of $233 million.

The company’s decision to proceed its market debut is not a surprise. ServiceTitan has been a favorite on lists of likely IPO candidates for years, including in January forecast from Crunchbase News.

Among unicorns, it is also one of the most famous and useful names. The company was reportedly valued at $9.5 billion after its 2021 funding round, near market peak. It is unclear what valuation the company would currently achieve.

If the planned offering proves successful, it could provide liquidity to many of the high-profile investors who have funded it over the years. According to the S-1, the largest holders of ServiceTitan Class A standard stock include: ICONIQ development (24%), Partners of the Bessemer enterprise (13.9%), Battery ventures (7.5%) i TPG (6.4%).

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