When ServiceTitan announced its plan to go public in November, it was, to some, a long time coming.
The tech company, which was 17 years old at that point, had amassed more than $1 billion in capital and millions in revenue – $614 million in 2024, to be exact. It also had a previously failed initial public offering push under its belt.
But, as chief executive Ara Mahdessian said during the company’s first ever earnings report this month, the IPO was “never the destination.”
“And in fact, it’s just the beginning of a new era for ServiceTitan, for our customers and for the trades because the only thing more exciting to me than how far we’ve come is just how much further we have yet to go,” Mahdessian said.
ServiceTitan announced its third quarter fiscal 2025 earnings in January, amid roaring fires that encroached upon the company’s headquarter city, Glendale.
When ServiceTitan announced its bid to go public in November, it was perhaps a sign that the rather slow IPO market in 2024 wouldn’t stretch to 2025. Today, as company owners pick up the physical pieces of their homes and businesses, the state of the Los Angeles IPO market remains cloudy.
“It has frankly become a very significant financial city, and a lot of these finance professionals have had professional losses, personal losses, their communities have had losses,” said Jennifer Post, managing partner of the Century City outpost of law firm Thompson Coburn. “There’s just a question of the psychological bandwidth regarding IPO leadership, if you will, to move forward with the same commitment.”
It’s a moment of bittersweet irony for a company like ServiceTitan, which caters to those who build the kind of homes and businesses many in Los Angeles have lost. It’s founders Mahdessian and Vahe Kuzoyan – ServiceTitan’s president – grew up with parents who were in the trades; ServiceTitan was born out of a summer project meant to update Kuzoyan’s father’s plumbing business software, after which Kuzoyan planned on leaving Los Angeles for a Silicon Valley tech career. Instead, the pair built ServiceTitan into Glendale’s only unicorn-valued company.
“We are obsessed with this industry because we grew up in it. It’s in our DNA,” Mahdessian said during the earnings call. “We grew up watching our dads put hours and hours into building their trades businesses and struggled to see the financial success we thought they deserved.”
The specs
Shares of the nascent public company ServiceTitan fell slightly on Jan. 14, the day after the company released its third-quarter earnings. Those stocks closed at $96.23, a 4% decline from the day prior.
Nonetheless, the company reported solid outcomes that beat analyst expectations. Total revenue jumped to $199 million, a 24% increase year over year. Revenue from the platform itself increased 26% year over year to $191 million.
“The breadth of our platform gives us a significant advantage for two reasons: First, we have visibility into our customers’ entire workflow. We know their largest challenges and can then work to deliver solutions with high ROI over time,” Kuzoyan said during the earnings call. “And because our pro products are a more sophisticated version of what is already offered in our core, the cross-sell motion is far more natural for us and for our customers because we help them get stronger in an area we’re already solving for today. The benefits of these advantages extend into new trades.”
The company reported $46.5 million in net loss for the third quarter of the 2025 fiscal calendar year, a 17% percent increase from the same time a year prior when the company reported $39.7 million in net loss.
Looking ahead at the fourth quarter of the fiscal 2025 calendar year, the company expects to see anywhere from $199 million to $201 million in total revenue. For the full fiscal year of 2025, ServiceTitan expects to see a range between $761.6 million to $763.6 million in total revenue.
The future of IPOs
Analysts largely reported a positive outlook for ServiceTitan. Terry Tillman, managing director at Truist Securities, said in a report that ServiceTitan’s earnings “reflected a continuation of steady execution against the company’s large and durable market opportunity, in our opinion.”
ServiceTitan is currently building out a handful of “pro” products, a suite of artificial intelligence-driven offerings driven by ServiceTitan’s massive database of user data. Because ServiceTitan offers a slew of products in order to be a one stop shop solution for trades workers, the company has a trove of behavioral data that it leverages to create its own in-house products. The company’s fleet of AI-enabled offerings include scheduling, pricing, marketing and sales, which “provide(s) significant cross-sell opportunities, deepens customer engagement, delivers on higher ROI for customers and increases the company’s effective take rate, in our opinion,” Tillman wrote.
ServiceTitan’s earnings are unlikely to be the catalyst of any new IPOs, according to Post – the market under President Donald Trump is already projected to be more suitable for business dealings at large, including launching private companies out into the public market.
“The unknown is what will be the full effect of the tariffs if they go into full effect, heavy-duty ICE enforcement, other things that can cause disruptions to the U.S. economy,” said Post. “And if those things happen then the interest rates are going to be frozen at best and there will just be disruptions to companies that would otherwise be looking at an IPO.”
But ServiceTitan said it was not worried about changes in performance under a new administration.
“People simply do not go without air conditioning in the scorching heat or heat in the freezing cold or without plumbing,” Mahdessian said during the call. “Even in difficult times, the trades keep our society running.”
