ServiceTitan Shares Surge In First-Day Trading

December 12, 2024

Illustration of unicorn crossing IPO bridge.

Joanna Glasner

Shares of surged 42% in first-day trading on the Thursday, in what is likely to be the last large IPO by a venture-backed unicorn this year.

The Glendale, California-based company, which offers a platform for building services professionals, priced its IPO at $71 per share late Wednesday. That was above the projected range of between $65 and $67 and set an initial valuation for the company of around $6.3 billion.

Trading under the symbol TTAN, the company had a market capitalization of around $7.6 billion as shares closed at $101 on Thursday.

The offering caps what鈥檚 been a relatively slow year for tech IPOs. Overall, the first half of the year was brisker, with large well-received offerings from discussion platform , connectivity technology developer , and data security provider .

However, tech offering activity slowed down in the latter half of 2024, with U.S. unicorns overwhelmingly opting against filing to go public. ServiceTitan, which has long been a favorite on lists of likely IPO candidates, was the exception, submitting its S-1 in mid-November.

More than a decade鈥檚 worth of funding

Founded in 2012, the company had previously raised at least $1.5 billion from a long list of venture and private equity backers. Per the S-1, the largest holders of ServiceTitan鈥檚 Class A common stock include (24%), (13.9%), (7.5%) and (6.4%).

ServiceTitan was reportedly valued at $9.5 billion following a 2021 funding round, near the market peak.

As for financial performance, the company鈥檚 financials show growing revenue paired with smaller net losses. For the six-month period ending July 31, ServiceTitan pulled in $348 million in revenue, up 26% from the same period in 2023. Net loss for that period totaled $92 million in 2024, down 12% from a year ago.

Much of the loss stems from high spending on sales and marketing ($116 million for the six months ending July 31) and on R&D ($121 million for the same period). Not including these or administrative expenses, ServiceTitan says its gross profit was $233 million.

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