ServiceTitan could launch an initial public offering before year-end, now that the US presidential election has concluded, according to market sources.

The Los Angeles-based software provider for contractors has the revenue and growth profile such that it could have gone public three years ago, investor Byron Deeter, a partner at Bessemer Venture Partners, recently told this news service. The company is waiting for favorable market conditions before it pulls the trigger on an IPO, Deeter explained.

With the US stock market soaring to record highs in the wake of former President Donald Trump’s re-election to office, ServiceTitan is considering an IPO in December, said two sector advisors, and an investor who all follow the company. Two other sector advisors agreed there is a small window for ServiceTitan to launch an IPO before year-end.

Early investor feedback has been constructive, one of the sector bankers noted.

While a listing this year is a real possibility, the company may wait until 2025, these sources added. One sector advisor who has had conversations with ServiceTitan said he believes it would be better to wait until 3Q25 to market itself off of its 2026 financials.

Multiples for software-as-a-service (SaaS) providers could improve in 2025, one of the advisors noted.

Further interest rate reductions are also on the horizon, which should provide tailwinds for technology firms like ServiceTitan should it IPO next year, a public markets investor agreed. Still, with rates already coming down, this is already a desirable climate to IPO, he said.

The software company for service industries like HVAC and plumbing reportedly crossed USD 600m in annual recurring revenue in 2023, growing roughly 25%. A Silicon Valley fund manager pegged ServiceTitan’s revenue in 2024 at more than USD 700m.

Goldman Sachs and Morgan Stanley are advising ServiceTitan’s IPO, as reported.

The firm first confidentially filed for an IPO in early 2022, seeking a USD 18bn valuation, but held off due to market conditions, two sources said, echoing previous media reports.

ServiceTitan was valued at USD 9.5bn in a Thoma Bravo-led funding round in 2021.

Founded in 2007, it has raised more than USD 1bn from investors including Tiger Global Management, Sequoia Capital Global Equities, and Bessemer Venture Partners.

A sector advisor who pitched his services before the company’s IPO filing in 2022 said he believes it can buck a recent tech trend of flat and down rounds, and potentially achieve a valuation greater than the one it achieved in 2021. Another advisor predicted ServiceTitan’s valuation would be on par with its 2021 valuation if it lists this year. Management will not want to accept a discount, which may influence timing, he said.

The company has strong margins, which should improve its equity story, those advisors added.

The Silicon Valley fund manager said his firm plans to invest in ServiceTitan, if it is offered a large enough allocation and the issuer’s financials match its valuation.

“It’s a big opportunity. The HVAC space needs to be modernized, and ServiceTitan is leading that transformation. It’s a booming industry,” said the fund manager, cautioning that fluctuations in home building and commercial real estate markets may be headwinds.

Possible comps could include Salesforce [NYSE:CRM] for customer relationship management and Klaviyo [NYSE:KVYO] for marketing automation, the fund manager said. Additional comps could include other vertical software providers bought by private equity, he said.

A message seeking comment from ServiceTitan was not returned.