ServiceTitan, a cloud software company, announces plans to go public on Nasdaq.

• On Monday, ServiceTitan, a software company catering to contractors including plumbers and roofers, filed for a public listing on the Nasdaq stock exchange using the ticker symbol "TTAN."
• Next-generation software companies may be attracting more investor interest, according to the filing.
• ServiceTitan faces competition from Salesforce and SAP.

On Monday, ServiceTitan, a software company catering to contractors including plumbers and roofers, filed for a public listing on the Nasdaq stock exchange using the ticker symbol "TTAN."

The filing indicates that investors may be showing more interest in next-generation software companies. A few such companies, including and , made their public debuts in the U.S. this year. Additionally, chipmaker Cerebras filed for an initial public offering. However, there were no tech IPOs in 2021 or 2022 due to central bankers raising interest rates to combat inflation, which made investors less inclined to invest in money-losing startups.

In Glendale, California, ServiceTitan provides cloud-based software for advertising, scheduling jobs, dispatching, generating invoices, and accepting payments. The company reported a $35.7 million net loss on $193 million in revenue in the quarter that ended on July 31, according to the filing. Despite this, revenue increased by approximately 24% year over year, and the quarterly loss had decreased from almost $52 million.

The revenue growth rate of ServiceTitan will be a standout for investors in cloud stocks, who have seen rates decline with few new public companies in the sector. The average growth rate for the Nasdaq Emerging Cloud Index, which serves as the basis for the WisdomTree Cloud Computing Fund, is 16.6%.

The founders of ServiceTitan, Ara Mahdessian and Vahe Kuzoyan, whose fathers were both residential contractors, originally started the company in 2007. While most of ServiceTitan's customers are small and medium-sized businesses, the company has recently shifted its focus towards selling products to large corporations and construction customers, as stated in the filing.

The company intends to retain up to 5% of shares in the IPO for eligible clients, the founders' friends and family members, and others through a directed share program.

The investors in the company are Battery Ventures, Bessemer Venture Partners, Iconiq, and TPG. Iconiq specifically holds 24% of the company's Class A shares.

Along with specialty companies such as HouseCall Pro, Jobber, and Workwave, there are also competitors in the market.

Among the company's IPO underwriters are Goldman Sachs, Morgan Stanley, Wells Fargo, and Citigroup.

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