The Service Titan S-1

ServiceTitan, a vertical SaaS company for the trades recently filed their S-1 and went public on December 12, 2024. Dave "CAC" Kellogg and Ray "Growth" Rike discuss many details regarding the S-1 including the basic enterprise value creating performance metrics and some very interesting aspects of the IPO structure.

During this episode, Dave and Ray discuss several aspects of the S-1 and IPO measured against industry benchmarks including:

• ARR Growth Rate

• Rule of 40

• Net Dollar Retention Rate

• CAC Payback Period

• Gross Margin

• S&M as a percentage of revenue

• R&D as a percentage of revenue

• ARR per FTE

• Revenue breakdown by category (Subscription, Gross Transaction Value, Services)

• Down round from last rounds of funding as a private company

• Compounding IPO Ratchet

• Different classes of stock and voting rights

One of the sources of information used for this episode was the Meritech Capital S-1 breakdown which can be read here.