So there were barely any SaaS IPOs in 2022 or 2023. The last big SaaS IPO of the Boom Era was Hashicorp in December 2021, and after that, multiples fell off a cliff and the SaaS and Cloud IPOs … stopped. There were no significant SaaS IPOs for almost 2 years, until Klaviyo (+ Instacast + ARM) all tried to reopen the market in September 2023. All incredible companies, but the IPOs were only modestly successful in terms of valuations and market reactions, and it became crickets again with no SaaS IPOs for the rest of the year.
For all intents and purposes, $7.5 Billion+ Klaviyo was the only SaaS IPO of the past 2 years. And it took a really, really great SaaS company to pull it off.
But many more are looking at going public in 2024, even if the markets aren’t much better than they were. At least Nasdaq itself had a record year in 2023.
First up by many reports may be ServiceTitan. Reuters and others are reporting ServiceTitan has already filed to IPO in the first half of 2024. It actually confidentially filed to IPO during the tail end of the 2021 Boom, but the boom ended just months later, so the filing was quietly shelved.
ServiceTitan is a really, really good one and we’ve been pleased to have the founders speak multiple times at SaaStr events over the year.
What it looks like:
- Founded 2012, service management software for HVAC and more. Really SMB vertical SaaS.
- $250,000,000 in ARR in 2021, growing almost 50%, per Reuters
- $460,000,000 in ARR “recently”, per The Information
- Today? Assuming they grew 40% this year, that would put them at perhaps $600,000,000+ ARR?
- Not profitable last year per The Information, but presumably have gotten much more efficient this year — like everyone else
- ~ 12,000 customers and 100,000 end users
It looks to be another Klaviyo-like epic IPO with top-tier growth and $500,000,000+ of ARR.
Fingers crossed. It should be a good one.
