ServiceTitan IPO: Everything you need to know about ServiceTitan

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By :  ,  Financial Writer

What is ServiceTitan?

ServiceTitan is a US startup that offers cloud-based software to field service companies (think HVAC, plumbing, electric, lawn service, etc.); the company was founded in 2007 by Vahe Kuzoyan and Ara Mahdessian who wanted to create software that would aid both their fathers’ contracting businesses.

ServiceTitan is designed to aid in all aspects of business including CRM, worker dispatch, custom reporting, marketing automation, mobile support for field techs, and accounting integrations. The expansive suite of services is advertised for small-to-medium-sized businesses focusing on growth.

When is ServiceTitan’s IPO?

ServiceTitan’s IPO is expected to occur sometime in 2022, although a date has yet to be set. The Glendale, California-based company began preparing for an IPO in the fall of 2021 and is reportedly aiming for a valuation of $18 billion.

In the meantime, explore other IPOs slated for 2022.

How to trade ServiceTitan shares

When it lists, you’ll be able to trade ServiceTitan shares in the same way you would any other publicly-traded company on the stock market. In the meantime, you can trade hundreds of global shares with City Index in just four steps:

1.           Open an account, or log in if you’re already a customer

2.           Search for the company you want to trade in our award-winning platform

3.           Choose your position and size, and your stop and limit levels

4.           Place the trade

Alternatively, you can practise trading with a free demo account ahead of ServiceTitan’s IPO.

How much is ServiceTitan worth?

ServiceTitan was valued at $9.5b in June of 2021 during the company’s latest round of private fundraising. The company is hoping for nearly double that after its IPO.

As for funding, the company last raised $200m during a funding round led by private-equity firm Thoma Bravo in June 2021. It’s the largest amount raised of any Software-as-a-Service (SaaS) company in Southern California. In total, ServiceTitan has raised $1.1b over eight funding rounds.

How does ServiceTitan make money?

ServiceTitan makes money through software subscriptions, which start at $398 per month, paid yearly and may increase with additional features and number of field workers. ServiceTitan is generally ranked more expensive than most of its competitors.

ServiceTitan has also performed several acquisitions of smaller field service software companies, including Aspire Software and ServicePro in 2021. In addition, the software company has partnered with numerous equipment suppliers such as Johnstone, Gensco and Daikin to offer streamlined purchases through its platform of which ServiceTitan likely receives affiliate payments for.

ServiceTitan received a surge in customers during the Covid-19 pandemic when home maintenance projects rose drastically. HVAC companies, which also experienced outsized growth during the pandemic, are also key clients of ServiceTitan. Overall, ServiceTitan’s clients employ over 100,000 workers.

The high demand in the field service sector will likely drop back to pre-pandemic levels, but CEO Ari Mahdessian told the LA Times he sees ample room for more growth considering there are over three million trade workers in the US.

Is ServiceTitan profitable?

ServiceTitan has not publicly shared its profitability in any SEC filings. However, the company’s ARR has increased year over year, with ServiceTitan most recently celebrating reaching $250m as of March 2021. That’s up from $100m ARR and 2,500 clients in 2019.

What is ServiceTitan’s business model?

ServiceTitan’s business model focuses on dominating the field service industry through retaining high customer satisfaction and steadily increasing its customer base. The company has chosen not to expand into other markets, and has instead focused on the specific needs of field services in order to become the best option in the niche industry.

ServiceTitan has also partnered with dozens of vendors like QuickBooks to utilize their APIs while stabilizing their own software. Ershad Jamil, ServiceTitan’s VP of Growth has spoken in the past about integrating new Internet of Thing devices such as smart thermostats to automate home maintenance service and repairs.

In 2020, during the onset of the pandemic, ServiceTitan quickly adapted to debut new features for contactless fieldwork and customer interaction. The company also published a contractor’s playbook and online community aimed at sharing advice and best practices among contractors for the rapidly changing work environment.

Who are ServiceTitan’s competitors?

ServiceTitan’s main two competitors are Salesforce Field Service and Jobber. However, ServiceTitan has risen to the top of the niche marketplace since its founding in 2012, even acquiring several smaller field service software businesses.

Compared to Salesforce Field Service, a branch of Salesforce, ServiceTitan offers acute specialization for home maintenance businesses. In aggregated online reviews, customers generally credit ServiceTitan with better ease of use and superior customer service.

Meanwhile, Jobber is geared towards smaller companies, which may be preferable considering the high price point of ServiceTitan and the large range of services offered that may be overwhelming or unnecessary for small operations. 

ServiceTitan is one of the most expensive options for field service management, but the ability to manage all aspects of business, both front-end and back, may be worth the cost.

Who owns Service Titan?

ServiceTitan is owned by co-founders Mahdessian and Kuzoyan along with several venture capital firms that have bought private shares during one or more of ServiceTitan’s eight funding rounds. These firms include Tiger Global Management, Sequioa Global Equities, Arena Holdings, Battery Ventures, Bessemer Venture Partners, Dragoneer Investment Group, Durable Capital, ICONIQ Growth, Index Ventures, and T. Rowe Price.

ServiceTitan board of directors

According to ServiceTitan’s most recent SEC filing and a press release announcing Jolly and Dholakia’s appointments, these are the current board members:

  • Ara Mahdessian – Co-founder, Director
  • Vahe Kuzoyan – Co-founder, Director
  • Michael Brown – Director
  • Tim Cabral – Director
  • Will Griffith – Director
  • William Hsu – Director
  • Ilya Golubovich – Director
  • Byron Deeter – Director
  • Nina Achadjian – Director
  • Diya Jolly – Director
  • Sameer Dholakia – Director

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