YEREVAN, December 4. /ARKA/. ServiceTitan, one of the world’s leaders in cloud software development, has announced that it aims to raise up to $502 million in its initial public offering on the Nasdaq stock exchange, according to the LA Times.
The company announced plans to offer 8.8 million shares at a price ranging from $52 to $57 each, according to a regulatory filing. At the upper end of that range, ServiceTitan’s market capitalization would reach $5.16 billion. The company was valued at $7.6 billion following a funding round in November 2022. ServiceTitan has not disclosed when it plans to begin trading
ServiceTitan was founded in 2007 by two college friends from Glendale, Ara Mahdessyan, 39, and Vahe Kuzoyan, 41. The company has previously raised approximately $1.4 billion from venture firms, including Iconiq Growth, Bessemer Venture Partners, and Battery Ventures.
Its customers include around 8,000 contracting firms, offering a comprehensive software package that can manage appointments, generate estimates, process invoices, calculate payroll, and dispatch workers. As of August 2024, the company employs more than 2,800 people in Glendale, Atlanta, and Yerevan.
The company reported revenue of $614 million for the fiscal year ending January 31, an increase of nearly one-third compared to the previous year, and an operating loss of $195 million, a 28% reduction from fiscal year 2023. As of January 31, it had approximately $147 million in cash and cash equivalents, along with $175 million in long-term net debt.
The company’s share structure ensures that control remains with the founders—Mahdessyan, the CEO, and Kuzoyan, the president—who will retain all Class B shares, each of which carries 10 votes.
The lead underwriters for the IPO are Goldman Sachs Group, Morgan Stanley, Wells Fargo, and Citigroup. They have an option to purchase an additional 1.32 million shares, which will trade under the ticker symbol “TTAN.”
