TTAN
Servicetitan, INC
NASDAQ
S-1: ServiceTitan Amends Bylaws and Files for IPO, Revealing Strong Growth Metrics
Sentiment:
S-1 Filing
18 November 2024 11:01 AM
ServiceTitan, a software provider for the trades industry, has filed an S-1 registration statement for its initial public offering, revealing amended bylaws and impressive growth metrics.
Worse than expected
The company experienced a net loss of $195.1 million for fiscal year 2024, which is worse than expected for a company of this size.
Capital raise
ServiceTitan has filed an S-1 registration statement for its initial public offering.
The company intends to use approximately $ million of the net proceeds from this offering to redeem all outstanding shares of its non-convertible preferred stock.
The remaining net proceeds will be used for general corporate purposes, including working capital, operating expenses and capital expenditures.
The company may also use a portion of the net proceeds to acquire or invest in businesses, products, services or technologies.
Summary
- ServiceTitan has filed an S-1 registration statement for its initial public offering, which includes amended bylaws.
- The company reported revenue of $614.3 million for fiscal year 2024, a 31% increase year-over-year.
- Gross transaction volume for the 12 months ended July 31, 2024, was $62 billion.
- The company has a gross dollar retention rate of over 95% for each of the last 10 fiscal quarters.
- Net dollar retention rate was over 110% for each of the last 10 fiscal quarters.
- ServiceTitan experienced a net loss of $195.1 million for fiscal year 2024.
- The company estimates a serviceable market opportunity of approximately $13 billion.
- The company serves over 10 trades and customers of all sizes, ranging from small family-owned shops with a few employees to others with over $1 billion in annual gross transaction volume.
Sentiment
Score: 7
Explanation: The document presents a mixed picture. While the company shows strong growth and customer retention, the significant net loss and potential risks temper the overall sentiment. The IPO is a positive step, but the company's future performance will depend on its ability to manage its growth and achieve profitability.
Positives
- ServiceTitan has demonstrated strong revenue growth, increasing 31% year-over-year in fiscal year 2024.
- The company has a high gross dollar retention rate, indicating strong customer loyalty.
- The company has a high net dollar retention rate, indicating strong customer growth.
- ServiceTitan has a large serviceable market opportunity, suggesting potential for future growth.
- The company has a diverse customer base, ranging from small businesses to large franchises.
Negatives
- ServiceTitan experienced a net loss of $195.1 million for fiscal year 2024.
- The company's net loss reflects continued investment in the growth of the business.
Risks
- The company has a history of losses and may not be able to achieve or sustain profitability in the future.
- The company faces competition from both established and new companies.
- The company may be unsuccessful in making, integrating and maintaining acquisitions.
- The company has incorporated and is incorporating traditional AI, machine learning and GenAI into some of its products, which may present operational and reputational risks.
- The company relies on software and services licensed from other third parties.
- The company or its third-party service providers may experience a cybersecurity breach or other incident.
- The multi-class structure of the company's common stock will have the effect of concentrating voting power with its Co-Founders.
Future Outlook
The company's mission is to make sure that the next generation of kids watching their heroes waking up at the crack of dawn to put bread on the table, never feel like those heroes are left behind by technology. The company's goal is to enable its customers to achieve a level of success in the trades that was once unimaginable.
Management Comments
- Ken Haines, CEO Wrench Group: Compared to anyone else, I dont think theres even a close second in terms of what ServiceTitan can provide their customers.
- Carrie Kelsch, Owner A Plus Garage Doors: Before ServiceTitan, I had limited visibility into our operations. We had reached our capacity, which restricted how I managed the company and limited my ability to make critical decisions, ultimately hindering our growth opportunities. ServiceTitan has changed all of that.
- Lincoln Walpole, CFO Any Hour Services: ServiceTitan is essential to our scalability. We cant standardize things without this operating system being in place. To be the best, we believe weve got to partner with the best, and thats ServiceTitan.
- Chris Hoffmann, CEO Hoffmann Brothers: As we started to grow, ServiceTitan became a necessity. It wasnt a matter of if wed transition to ServiceTitan, it was just a matter of when.
- Kirsta Holliman, CFO Interstate AC: I realized ServiceTitan is the only software that has all the facets that we need to handle both commercial service and commercial construction.
- Allen Sweeney, Owner APHIX: I dont know how you can make good decisions quickly without having everything rolled into one system.
Industry Context
The trades industry is a large, expanding cornerstone of the economy, with end customers spending approximately $1.5 trillion annually on trades services for homes and businesses in the United States and Canada alone. The industry is also experiencing an influx of professional operators, including private equity owners, who are investing in and consolidating the trades, standardizing the operations of their portfolio companies, implementing best practices and accelerating the digital shift with a focus on scaling and improving efficiency.
Comparison to Industry Standards
- The document highlights ServiceTitan's strong revenue growth of 31% year-over-year, which is a positive indicator compared to industry averages.
- The company's gross dollar retention rate of over 95% and net dollar retention rate of over 110% for the last 10 fiscal quarters are significantly higher than industry benchmarks, indicating strong customer loyalty and growth.
- The document mentions that ServiceTitan serves customers ranging from small family-owned contractors to large franchises with over $1 billion in annual gross transaction volume, which demonstrates the company's ability to cater to a wide range of businesses in the trades industry.
- The document also notes that ServiceTitan's customers performed jobs in zip codes representing approximately 98.5% of the U.S. population, indicating a broad market reach.
- The document states that ServiceTitan has less than 10% penetration in its approximately $650 billion serviceable industry spend, suggesting a significant opportunity for future growth.
Stakeholder Impact
- Shareholders: The IPO will provide an opportunity for investors to participate in the company's growth, but the multi-class structure will concentrate voting power with the Co-Founders.
- Employees: The company's equity compensation plans will provide employees with ownership opportunities, and the company's culture is focused on cultivating a performance culture rooted in meritocracy.
- Customers: The company's platform is designed to help trades businesses thrive, which can lead to better service and outcomes for end customers.
- Suppliers: The company's growth may lead to increased demand for suppliers of goods and services to the trades industry.
- Creditors: The company's debt obligations will be subject to the terms of the Credit Agreement, and the company's ability to repay its debt will depend on its financial performance.
Next Steps
- The company has applied to list its Class A common stock on the Nasdaq Global Select Market under the symbol TTAN.
- The underwriters expect to deliver the shares against payment in New York, New York, on or about a date to be determined.
Key Dates
- June 8, 2007: Date of original incorporation as LinxLogic, Inc.
- June 30, 2014: Date of filing of Certificate of Amendment to the Certificate of Incorporation.
- March 20, 2015: Date of filing of amended and restated certificates of incorporation.
- November 22, 2016: Date of filing of amended and restated certificates of incorporation.
- October 16, 2017: Date of filing of amended and restated certificates of incorporation.
- February 23, 2018: Date of filing of amended and restated certificates of incorporation.
- November 9, 2018: Date of filing of amended and restated certificates of incorporation.
- April 23, 2020: Date of filing of amended and restated certificates of incorporation.
- March 25, 2021: Date of filing of amended and restated certificates of incorporation.
- June 28, 2021: Date of filing of amended and restated certificates of incorporation.
- October 3, 2022: Date of filing of amended and restated certificates of incorporation.
- November 22, 2022: Date of filing of amended and restated certificates of incorporation.
- July 26, 2023: Date of filing of amended and restated certificates of incorporation.
- November 18, 2024: Date of S-1 filing.
Keywords
ServiceTitan, software, trades, IPO, revenue, gross transaction volume, retention rate, S-1, bylaws, financial metrics
TTAN
Servicetitan, INC
NASDAQ
Sector: TBD
Filings with Classifications
Worse than expected
1 July 2025 5:42 PM
Insider Trading Report
- A 10% owner and director, Bessemer Venture Partners, sold a substantial number of shares (225,277 shares) of ServiceTitan Class A Common Stock.
- Insider selling, especially by a significant holder, is generally perceived as a negative signal by the market, suggesting that the insider may believe the stock is fully valued or that better investment opportunities exist elsewhere.
Worse than expected
1 July 2025 5:36 PM
Insider Transaction Report
- Funds affiliated with a Director and 10% Owner, Byron B. Deeter, divested a substantial number of shares (225,277 shares) of ServiceTitan Class A Common Stock across two transactions. While the sales were by the funds and not directly by the individual, such significant sales by an affiliated entity of a major shareholder can be interpreted as a negative signal by the market.
Worse than expected
27 June 2025 7:08 PM
Insider Trading Report
- The document details significant insider selling by Bessemer Venture Partners, a 10% owner and director of ServiceTitan, Inc. Insider selling is generally perceived as a negative signal by the market, suggesting that a key stakeholder is reducing their exposure to the company's stock.
Worse than expected
27 June 2025 7:05 PM
Insider Transaction Report
- The sale of 137,543 shares by entities affiliated with a director and 10% owner is generally viewed as a negative signal by investors, suggesting a potential lack of confidence or a move to realize gains, which can put downward pressure on the stock price.
Worse than expected
12 June 2025 7:56 PM
Insider Transaction Report
- A significant sale of 500,000 shares by a 10% owner and director, Bessemer Venture Partners, could signal a lack of confidence or a strategic portfolio rebalancing, potentially leading to negative market perception.
Capital raise
12 June 2025 4:49 PM
Quarterly Report
- The company states, "We may be required to seek additional equity or debt financing."
- It notes that future capital requirements will depend on various factors, including business challenges, product enhancements, infrastructure improvements, and potential acquisitions.
- The company evaluates financing opportunities and acknowledges that obtaining additional financing on acceptable terms may not always be possible.
Better than expected
12 June 2025 4:49 PM
Quarterly Report
- Revenue growth of 27% significantly outpaced the prior year's comparable period.
- Net loss decreased by $9.7 million, indicating improved financial performance.
- Gross profit increased by 40%, and gross margins improved across the board, reflecting operational efficiencies.
- Net cash used in operating activities decreased, and non-GAAP free cash flow improved, showing better cash management.
- Gross Transaction Volume (GTV) increased by $3.2 billion, and the net dollar retention rate remained strong at over 110%, indicating robust customer adoption and expansion.
Better than expected
5 June 2025 4:07 PM
Quarterly Financial Results
- Total revenue grew 27% year-over-year to $215.7 million, exceeding the prior year's growth rate.
- Non-GAAP income from operations significantly increased to $16.2 million from $3.3 million in the prior year, indicating substantial improvement in core profitability.
- Non-GAAP operating margin improved to 7.5% from 1.9% year-over-year, reflecting enhanced operational efficiency.
- GAAP loss from operations decreased to $(49.5) million from $(53.4) million, showing a reduction in overall losses.
- Net cash used in operating activities improved to $(14.6) million from $(19.2) million, indicating a reduced cash burn.
Worse than expected
1 April 2025 9:28 PM
Annual Results
- The company's net loss increased from $195.1 million in fiscal year 2024 to $239.1 million in fiscal year 2025.
Better than expected
13 March 2025 4:06 PM
Earnings Release
- The company's revenue growth exceeded expectations, with a 29% increase in Q4 and a 26% increase for the full year.
- Non-GAAP profitability improved significantly, with a shift from a loss to income from operations for both Q4 and the full year.
- Net dollar retention remained high, indicating strong customer satisfaction and upselling opportunities.
Worse than expected
14 January 2025 5:10 PM
Quarterly Report
- The net loss increased from $39.7 million to $46.5 million year-over-year.
Better than expected
13 January 2025 4:05 PM
Earnings Release
- The company's non-GAAP income from operations turned positive, indicating improved profitability.
- Net cash generated from operating activities significantly increased, showcasing better cash management.
- Non-GAAP free cash flow improved, reflecting stronger financial health.
Worse than expected
10 December 2024 6:12 AM
S-1/A Filing
- The company's loss from operations increased by approximately 20% to 26% for the three months ended October 31, 2024 compared to the three months ended October 31, 2023.
Capital raise
10 December 2024 6:12 AM
S-1/A Filing
- ServiceTitan is conducting an initial public offering of its Class A common stock.
- The company intends to use approximately $310.6 million of the net proceeds from this offering to redeem all outstanding shares of its non-convertible preferred stock.
- The remaining net proceeds will be used for general corporate purposes, including working capital, operating expenses, and capital expenditures.
- The company may also use a portion of the net proceeds to acquire or invest in businesses, products, services, or technologies.
Capital raise
3 December 2024 6:06 AM
S-1/A Filing
- The company is conducting an initial public offering of shares of its Class A common stock.
- The company plans to use approximately $310.6 million of the net proceeds from this offering to redeem all outstanding shares of its non-convertible preferred stock.
- The remaining net proceeds will be used for general corporate purposes, including working capital, operating expenses and capital expenditures.
- The company may also use a portion of the net proceeds to acquire or invest in businesses, products, services or technologies.
Worse than expected
3 December 2024 6:06 AM
S-1/A Filing
- The company has a history of losses and may not be able to achieve or sustain profitability in the future.
Worse than expected
18 November 2024 11:01 AM
S-1 Filing
- The company experienced a net loss of $195.1 million for fiscal year 2024, which is worse than expected for a company of this size.
Capital raise
18 November 2024 11:01 AM
S-1 Filing
- ServiceTitan has filed an S-1 registration statement for its initial public offering.
- The company intends to use approximately $ million of the net proceeds from this offering to redeem all outstanding shares of its non-convertible preferred stock.
- The remaining net proceeds will be used for general corporate purposes, including working capital, operating expenses and capital expenditures.
- The company may also use a portion of the net proceeds to acquire or invest in businesses, products, services or technologies.
Disclaimer: This summary was generated by artificial intelligence and its accuracy is not guaranteed. The information provided here is for general informational purposes only and does not constitute financial advice, recommendation, or endorsement of any kind. It may contain errors or omissions. You should not rely on this information to make financial decisions. Always seek the advice of a qualified financial professional before making any investment or financial decisions. Use of this information is at your own risk.