Shares ServiceTitan increased by 46% in trading on the first day on the exchange Nasdaq Thursday, likely the last major public offering of a venture-backed unicorn company this 12 months.
The Glendale, California-based company, which offers a platform for construction services professionals, priced its IPO at $71 per share late Wednesday. This value exceeded the expected range of $65 to $67 and placed the company’s initial valuation at roughly $6.3 billion. It is traded under the symbol TTAN.
The offering caps a relatively slow 12 months for technology IPOs. Overall, the first half of the 12 months was more energetic, with a large, well-received offering of dialogue platforms Redditcreator of communications technology Astera’s laboratoryand data security provider Heading.
However, in the second half of 2024, technology offering activity declined, with US unicorns overwhelmingly opting to not list their shares on the stock exchange. The exception was ServiceTitan, which has long been a favorite on lists of likely IPO candidates, which filed its S-1 in mid-November.
Financing for over a decade
Founded in 2012, the company has previously raised at least $1.5 billion from a long list of enterprise and private equity backers. ServiceTitan is among the largest holders of Class A standard stock, in accordance with the S-1 Iconiq development (24%), Partners of the Bessemer enterprise (13.9%), Battery ventures (7.5%) i TPG (6.4%).
ServiceTitan was reportedly valued at $9.5 billion after its 2021 funding round, which is near market peak.
In terms of monetary performance, the company’s financial results show increasing revenues with lower net losses. For the six months ended July 31, ServiceTitan generated revenue 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 12 months.
Much of the loss is as a consequence 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 says its gross profit was $233 million.