So ServiceTitan has filed to IPO, and will be just the 4th SaaS IPO since 2021, after Klaviyo, Rubrik and OneStream.
It’s another very, very good one. And all four are IPO’ing / IPO’d at well above $500,000,000 in ARR. A high bar indeed.
ServiceTItan is SaaS for plumbing, HVAC and now many other trades. It’s true ERP / operating system for the, handling everything from orders to CRM to marketing to payments. It’s a good one:)
Service Titan will be just the 4th SaaS IPO since 2021
▶️ 3 of 4 from outside SF Bay
⏩ 0 of 4 from YC
I'd do both, SF and YC
But a reminder there are many paths to success
— Jason ✨👾SaaStr 2025 is May 13-15✨ Lemkin (@jasonlk) November 18, 2024
Key metrics:
- $700,000,000+ ARR
- 24% Growth
- 110% NRR from Mid-Sized and SMB Customers
- But not yet profitable (which may hurt them a bit at IPO, we’ll see)
5 Interesting Learnings:
#1. 110% NRR and 95% GRR from Mid-Sized Customers and SMBs
How do they do it from smaller and medium businesses? They key Is not just to be a tool. ServiceTitan does everything for tradespeople, from orders to billing and payments and more. They call themselves “The operating system for the trades”, and you probably need to build one (a true, complete vertical SaaS OS) to hit 100%+ NRR. And as we will see below, ServiceTitan has also gone relatively upmarket over time.
#2. 3,000 Employees, So About $230,000 in Revenue Per Employee
This isn’t super efficient compared to some, which are often at $300,000-$400,000 in revenue per employee post-IPO. Making SMBs happy can take more people. It’s more customers for every dollar.
#3. $60 Billion+ of Payments Flowing Through the Platform Per Year
ServiceTitan gets more revenue from software than payments, but both are critical to being the OS for the trades. $60B+ of transactions and payments flow through their platform each year.
#4. Focused on $10k+ ACV Customers, and Has 8,000 of Them
It’s hard to scale with Vertical SMB SaaS which an ACV much less than $10k. You can start lower, but it’s just hard to cross $100m-$200m+ ARR without a $10k ACV. And this indeed is where ServiceTitan focuses. 96% of its revenue comes from customers with $10k or more in annual billings. And 50% of its revenue comes from $100k+ customers. So ServiceTitan isn’t really all that SMB … anymore.
#5. $100k+ Customer Count Doubled in Past 2 Years, Now 50% of Revenue
Another metric showing how ServiceTitan has marched more and more upmarket at scale. Its roots are very SMB, but to cross $1B+ in ARR, it’s needed to focus on $100k+ deals.
And a few other interesting learnings:
#6. They Lose Money on Professional Services, But Only 5% of Revenue
ServiceTitan does change for onboarding costs, but not enough to turn a profit. It’s an investment in the future.
#7. Over 3,500 Customers and Prospects Attend Their Own Customer Events
Events work, even in vertical SaaS.
#8. Have Dedicated Upsell Sales Teams to Sell Payments and Pro Products Post-Sale
It’s interesting ServiceTitan has specialized AM teams here.
Wow. About as good as it gets for Vertical SaaS!
Go ServiceTitan, go!
