ServiceTitan pops to $101 in cloud software vendor’s Nasdaq debut after selling shares at $71

ServiceTitan pops to 1 in cloud software vendor’s Nasdaq debut after selling shares at


Vahe Kuzoyan, president & co-founder of ServiceTitan, poses for photos after ringing the opening bell at the Nasdaq MarketSite on Dec. 12, 2024.

Michael M. Santiago | Getty Images News | Getty Images

ServiceTitan shares popped 42% in their Nasdaq debut on Thursday after the provider of cloud software to contractors raised around $625 million in its initial public offering.

The company, trading under ticker symbol TTAN, sold shares at $71 apiece on Wednesday, above the expected range. The stock opened at $101. Based on its IPO price, the company’s market cap was about $6.3 billion.

ServiceTitan’s IPO is notable because few tech companies have taken the leap into the public market since late 2021, when rising interest rates and soaring inflation pushed investors out of risky assets. ServiceTitan is the first significant venture-backed tech company to go public since Rubrik’s debut in April. A month before that, Reddit started trading on the New York Stock Exchange.

Other companies have suggested an IPO could be coming soon. Chipmaker Cerebras filed to go public in September, but the process was slowed down due to a review by the Treasury Department’s Committee on Foreign Investment in the U.S., or CFIUS. Last month, online lender Klarna said it had confidentially filed IPO paperwork with the U.S. Securities and Exchange Commission.

While late-stage startups have been reluctant to take the public market leap, investors are showing a growing appetite for tech. On Wednesday, the Nasdaq Composite index closed above 20,000 for the first time. Tesla, Alphabet, Amazon and Meta all closed at records, with Apple just below its all-time high.

ServiceTitan agreed to “compounding ratchet” terms as part of a 2022 funding round that valued the company at $7.6 billion, according to its prospectus. The decision “has put ServiceTitan on the clock to go public ASAP to minimize dilution impact,” investors at venture firm Meritech Capital wrote in a blog post.

Founded in 2007 and based in Glendale, California, ServiceTitan targets businesses in plumbing, landscaping, electrical and other trades, with software for managing sales leads, recording calls, generating quotes and scheduling jobs. As of Jan. 31, it had about 8,000 customers with more than $10,000 in annualized billings.

ServiceTitan’s preliminary results for the October quarter show a net loss of about $47 million on $198.5 million in revenue. That suggests approximately 24% year-over-year revenue growth, the highest rate since mid-2023. But the company’s net loss widened from around $40 million in the October quarter last year.

Bessemer Venture Partners, TPG and Iconiq Growth are among the company’s top shareholders, alongside founders Vahe Kuzoyan and Ara Mahdessian.

At its IPO price, ServiceTitan was 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.

Don’t miss these insights from CNBC PRO

We're all gearing up for a really active next few years in IPO and M&A, says Stifel's Seth Rubin



Source

Rocket maker Firefly Aerospace files to go public under ticker FLY
Technology

Rocket maker Firefly Aerospace files to go public under ticker FLY

Firefly Aerospace CEO Jason Kim sits for an interview at the Firefly Aerospace mission operations center in Leander, Texas, on July 9, 2025. Sergio Flores | Reuters Rocket maker Firefly Aerospace filed for an initial public offering on Friday, with plans to trade under the ticker symbol “FLY” on the Nasdaq. Firefly’s planned offering comes […]

Read More
Robinhood is up 160% this year, but several obstacles are ahead
Technology

Robinhood is up 160% this year, but several obstacles are ahead

Robinhood stock hit an all-time high Friday as the financial services platform continued to rip higher this year, along with bitcoin and other crypto stocks. Robinhood, up more than 160% in 2025, hit an intraday high above $101 before pulling back and closing slightly lower. The reversal came after a Bloomberg report that JPMorgan plans […]

Read More
Bill Gates says Trump’s cuts to USAID are devastating: ‘It’s not too late to reverse them’
Technology

Bill Gates says Trump’s cuts to USAID are devastating: ‘It’s not too late to reverse them’

Bill Gates speaks with Reuters during an interview in New York City, U.S., May 8, 2025. Mike Segar | Reuters Bill Gates, the philanthropist and Microsoft co-founder, on Friday said it’s not too late to reinstate international aid funding that President Donald Trump cut off. The Trump administration placed staff members at the U.S. Agency […]

Read More