ServiceTitan stock popped Thursday in the company's public trading debut. The newly minted TTAN stock gained more than 40% following its initial public offering on the Nasdaq, offering a positive sign about the market for new issues.
The provider of software for trades businesses priced its IPO at 71 last night, ahead of its previous range between 65 and 67. ServiceTitan raised $625 million through the offering of 8.8 million shares.
On the stock market today, ServiceTitan stock gained 41% to close at 101.
ServiceTitan Stock: Software For Trades
ServiceTitan describes its product as "end-to-end, cloud-based software" that connects advertising, scheduling, management, dispatching, invoicing and other operational tasks for trades businesses.
The Glendale, Calif.-based company recorded $363.3 million in revenue for the six month period ended with July, according to its IPO filing, up 24% from the same time frame in 2023. The firm posted a net loss of $91.7 million during that time, down from $104.1 million for the same period a year earlier.
In its S-1 filing, the company said it has an opportunity "modernizing a massive and technologically underserved industry" in trades such as plumbing, roofing and landscaping.
"We estimate the customers of trades businesses ... spend approximately $1.5 trillion annually on trades services for homes and businesses in the United States and Canada alone," the company said in its filing. "Despite the size and criticality of the trades and the specialized skills of tradespeople, technology solutions have generally not evolved to address their needs."
For the 12 months ended in July, ServiceTitan processed $62 billion in gross transaction volume, the company said.
Positive Sign For IPOs?
Investors will be watching ServiceTitan's performance as an indicator of the appetite for IPOs. It has been another slow year for tech IPOS, despite notable debuts from Reddit, Astera Labsand Rubrik.
There were 25 tech IPOs this year through Dec. 2, according to S&P Global data. That's flat with 2023 and down from 51 in 2022 and 215 during the boom market of 2021.
Rudy Yang, senior emerging technology analyst at PitchBook, said in emailed commentary Thursday that ServiceTitan's IPO signals a "potential revival in fintech companies tapping the public markets to drive growth and scale their reach."
ServiceTitan represents a trend of software-as-a-service companies that are embedding financial services into their offering to address the needs of specific markets, Yang added.
"If ServiceTitan's IPO performs well and the company can deliver both growth and profitability, we believe there will be increased attention on vertical SaaS companies that strongly integrate financial services into their offerings," Yang said.
