A $7.5 Billion IPO and ZERO Profits? ServiceTitan’s IPO Screams 2020 Nostalgia

Maybe it’s just me but 2020 feels like a fever dream now, doesn’t it? The year we collectively decided masks would cure cancer, “influencers” choreographed our way through quarantine (and became life coaches), oh and day-trading Tesla turned everyone into a self-proclaimed financial guru (you weren’t).

Fast forward to 2024, and the IPO market (after hibernating like a grizzly bear in dead winter) is finally rolling out of its cave, looking for its next meal. Cue the dramatic music and enter ServiceTitan, the company that just rang the Nasdaq bell and declared, “Hey, remember when money was basically free? Let’s do that again!” (it’s not quite the same vibe.)

ServiceTitan opened at a historic $101 per share (42% above its IPO price of $71). By midday, it was still chilling around $100, leaving the company with a market cap north of $7.5 billion. To put that into perspective, that’s enough to buy every tradesperson in America a vacation.

(Source: Yahoo Finance)

The Glendale-based software company raised $625 million, selling 8.8 million shares of its Class A stock. Not bad for a tech IPO market that’s been dead as a doornail since 2021. ServiceTitan, for the uninitiated, is the unsung hero for plumbers, electricians, and landscapers everywhere. Think of it as the Iron Man suit of CRM platforms, automating everything from scheduling to billing so your plumber doesn’t accidentally send you an invoice via carrier pigeon.

Founded in 2012 by Ara Mahdessian and Vahe Kuzoyan, whose dads were contractors, ServiceTitan’s mission is to drag the trades industry kicking and screaming into the 21st century. Apparently, some folks in this space are still using fax machines (we know, horrifying). But let’s talk about the real problem here: they’re not profitable… yet. Over the last 12 months, they pulled in $685 million in revenue but still managed to lose $183 million. The good news? That’s 31% less bleeding than last year, so hey, progress!

With a 24% revenue growth rate, ServiceTitan is betting that "slow and steady" will win the race. CEO Mahdessian is a hopeless optimist: “Investors love cash-flow positive companies. Lucky for us, we finally are.” Basically admitting they’re still losing money, just in a sexier way.

Make no mistake about it, his IPO is bigger than just ServiceTitan… it’s a litmus test for whether the tech IPO market still has a pulse. It’s the first big-name venture-backed debut since Rubrik in April, and according to board member Nina Achadjian, the enthusiasm for TTAN could pry open the IPO floodgates. (Or at least crack them a little.)

So here we are, ServiceTitan (a company built for plumbers and electricians) taking center stage in the tech world. It’s like watching a journeyman QB win the Super Bowl… unexpected, but you can’t help but root for them. So do we have another 2020 IPO market? Once Jerome Powell cuts rates down to 0% gain, then let’s talk but for now, keep an eye on TTAN… it might just unclog some serious gains.

Stock.News has positions in Tesla.

P.S. Welp, you friggin’ missed it. I told you it wouldn’t last forever, but hey… luckily for you, Stocks.News premium is still cheaper than a night out at the strip joint AND you may even get a bonus happy ending from it (read: EXPLOSIVE TRADE). Alright, alright, all jokes aside—Stocks.News premium is sitting at $20 a month. What does that cost you? Well, if you look at your monthly expenses… It's freakin’ miniscule. But unlike your monthly expenses, this $20 could get you a front row seat with the market’s most explosive trade setups BEFORE they make headlines. So again what does $20/m for Stocks.News cost you? Well considering we are averaging AT LEAST one triple digit winner a week, I’ll leave that up to you—but in the end, it may cost you way more than you think. Click here ASAP to get the full-platter of details you’ll get as an exclusive Stocks.News premium member.