ServiceTitan, a U.S. based company that sells cloud software to contractors such as plumbers and roofers, has filed to hold an initial public offering (IPO) on the Nasdaq (NDAQ) exchange.
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The exact date of the IPO has yet to be determined, but ServiceTitan will trade under the ticker symbol “TTAN.” ServiceTitan is one of only a few sizable technology IPOs this year after earlier public debuts by Reddit (RDDT) and Rubrik (RBRK).
Based in California, ServiceTitan makes cloud software for advertising, scheduling jobs, dispatching workers, invoicing clients, and receiving payments. The company had a $35.7 million net loss on $193 million in revenue in the quarter that ended on July 31 of this year, according to its IPO filing.
Growing Client Base
ServiceTitan was founded in 2007 and initially focused on small- and medium-sized businesses. However, it has started selling to bigger clients and construction companies. ServiceTitan said in its filing that it plans to keep up to 5% of shares in the IPO for eligible clients, employees, and founders through a directed share program.
Early venture investors in the software company include Iconiq and TPG. Iconiq is the largest investor in ServiceTitan, controlling 24% of the company’s Class A shares. Competitors of ServiceTitan include other cloud software vendors such as Salesforce (CRM) and SAP (SAP).
Goldman Sachs (GS), Morgan Stanley (MS), and Wells Fargo (WFC) are underwriting the IPO.
Is Salesforce Stock a Buy?
As ServiceTitan’s stock has not yet begun to trade on a public exchange, we look instead at rival cloud software company Salesforce. The stock of Salesforce currently has a consensus Moderate Buy rating among 42 Wall Street analysts. That rating is based on 32 Buy, nine Hold and one Sell recommendations issued in the last three months. The average CRM price target of $332.60 implies 3.84% upside from current levels.
