ServiceTitan begins trading on Nasdaq following initial public offering | Real Time Headlines

Serve Titan Shares of the company, which provides cloud software to contractors, soared 42% in its Nasdaq debut on Thursday. Approximately US$625 million in its initial public offering.

The company sold shares on Wednesday for $71 a share, above expectations. 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 here we go Traded on the New York Stock Exchange.

Other companies have said they may launch initial public offerings soon. chip manufacturer brain It applied to list 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 explain The company has confidentially filed IPO documents with the SEC.

While late-stage startups have been reluctant to make big leaps into the public markets, investor interest in technology continues to grow. The Nasdaq closed above 20,000 on Wednesday first. Tesla, letter, Amazon and Yuan All closed on Recordwhile Apple’s stock price is slightly below 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 post.

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 months revenue. The WisdomTree Cloud Computing Fund, a basket of more than 60 publicly traded cloud stocks, currently trades at about 6.4 times revenue.

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