ServiceTitan, Inc. TTAN reported mixed first-quarter results on Thursday.ServiceTitan posted adjusted earnings of 18 cents per share, beating market estimates of 12 cents per share. The company's quarterly sales came in at $215.69 million versus expectations of $208.69 million.The company raised its FY2026 sales guidance from $895.00 million-$905.00 million to $910.00 million-$920.00 million.“The ROI we deliver to our customers continues to be our greatest advantage,” said Vahe Kuzoyan, Co-Founder and Presi ...

Financial Data and Key Metrics Changes - Q1 gross transaction volume (GTV) was $17.7 billion, up 22% year over year [23] - Q1 total revenue was $215.7 million, up 27% year over year, driven by subscription revenue of $162.7 million, which grew 29% year over year [24] - Q1 platform gross margin was 79.7%, an improvement of over 300 basis points year over year [24] - Q1 operating income was $16.2 million, leading to a record operating margin of 7.5%, an improvement of 560 basis points year over year [25] - Q1 free cash flow was negative $22.3 million, an improvement from negative $24.6 million in the prior year [26] Business Line Data and Key Metrics Changes - Subscription revenue growth was 29% year over year, while usage revenue grew 22% year over year [24] - Professional service revenue for Q1 was $7.7 million [24] - Net dollar retention was greater than 110% for the quarter [24] Market Data and Key Metrics Changes - The company reported healthy growth from both residential and commercial customers [23] - The focus on enterprise customers is increasingly driving growth, with significant interest in standardizing operations around AI and automation [16][17] Company Strategy and Development Direction - The company aims to deliver real ROI to customers, which drives subscription and usage revenue growth [6] - Four primary areas of focus for FY 2026 include expanding enterprise capabilities, pro product adoption, deeper engagement in commercial, and growth in roofing [15] - The company is leveraging partnerships and technology to enhance its offerings, particularly in the commercial and roofing sectors [21][66] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to navigate economic uncertainty and highlighted the resilience of customers [32] - The company is managing for long-term growth and margin expansion, with a target of achieving a 25% non-GAAP operating margin [27] - Management is cautious about external factors such as tariffs and their potential impact on customer growth and supply chain inflation [32] Other Important Information - The company is focused on delivering transformative customer outcomes and building trade-specific workflows [11][14] - The introduction of new AI-native products is expected to enhance operational efficiency for customers [18] Q&A Session Summary Question: Impact of tariffs on the business - Management acknowledged potential positive and negative impacts of tariffs, emphasizing customer resilience and the ability to pass through rising costs [32] Question: Stacking S curve strategy for growth - The company is focused on enterprise, commercial, pro, and roofing as primary areas of attention for growth [35] Question: Seasonal perspective on GTV and pro product attach - GTV is expected to be stronger in Q2 due to seasonal factors, with pro products being a significant growth driver [40][43] Question: Update on commercial bookings and product capabilities - Commercial bookings and go-lives are performing well, with ongoing development of a dedicated commercial CRM and project management capabilities [46][48] Question: Opportunities in new trades - The company is open to exploring new trades but focuses primarily on established priorities to ensure resource allocation [52] Question: Average ticket sizes and macro impacts - Average ticket sizes remained stable, with Q2 guidance factoring in weather variability and macroeconomic conditions [56] Question: Visibility from customer go-lives - Customer go-lives provide high visibility into subscription revenue, with a focus on delivering ROI to encourage upselling of pro products [76][78]

Financial Data and Key Metrics Changes - Q1 gross transaction volume (GTV) was $17.7 billion, up 22% year over year [20] - Q1 total revenue was $215.7 million, up 27% year over year, driven by subscription revenue of $162.7 million, which grew 29% year over year [21] - Q1 platform gross margin was 79.7%, an improvement of over 300 basis points year over year [21] - Q1 operating income was $16.2 million, leading to a record operating margin of 7.5%, an improvement of 560 basis points year over year [22] - Q1 free cash flow was negative $22.3 million, an improvement from negative $24.6 million in the prior year [23] Business Line Data and Key Metrics Changes - Subscription revenue growth was 29% year over year, while usage revenue grew 22% year over year [21] - Professional service revenue for Q1 was $7.7 million [21] - Net dollar retention was greater than 110% for the quarter [21] Market Data and Key Metrics Changes - The company reported healthy growth from both residential and commercial customers [20] - The focus on enterprise customers is increasingly driving growth, with significant interest in standardizing operations around AI and automation [14] Company Strategy and Development Direction - The company aims to expand enterprise capabilities, increase pro product adoption, deepen commercial focus, and grow in roofing [12] - The strategy includes building trade-specific workflows to attract new industries to the platform [9] - The company is focused on becoming the operating system for the trades, with a long-term target of achieving a 25% non-GAAP operating margin [24] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to navigate economic uncertainty and emphasized the resilience of customers [30] - The company is managing for long-term growth rather than short-term gains, with a focus on durable compounding growth over many years [24] - Management acknowledged the potential impact of tariffs and supply chain inflation but emphasized the importance of prudent forecasting [30] Other Important Information - The company highlighted successful customer stories that demonstrate the value of its platform, including significant revenue growth for customers using its services [7][10] - The company is actively pursuing partnerships and consolidations in the commercial space, which is seen as a key growth area [65] Q&A Session Summary Question: Impact of tariffs on the business - Management noted that while tariffs could lead to supply chain inflation, customers have historically managed to pass through rising costs [30] Question: Stacking S curve strategy - The company is focused on enterprise, commercial, pro products, and roofing as primary areas of attention for growth [32] Question: Seasonal perspective on GTV - GTV is expected to be stronger in Q2 due to seasonal factors, particularly in trades like HVAC and landscaping [37] Question: Commercial bookings and product roadmap - Commercial bookings are performing well, with significant go-lives and a focus on enhancing product capabilities for construction use cases [44] Question: Average ticket sizes and macro impacts - Average ticket sizes remained stable, with Q2 guidance factoring in weather variability and macroeconomic conditions [55] Question: Visibility from customer go-lives - Customer go-lives provide high visibility into subscription revenue, with a focus on delivering ROI to encourage upselling of pro products [78]

Investor Presentation Summer 2025 | Q1'FY26 Forward-Looking Statements & Other Disclaimers This presentation contains forward-looking statements within the meaning of within the meaning of the Securities Act of 1933, as amended, the Securities Exchange Act of 1934, as amended, and the Private Securities Litigation Reform Act of 1995. Forward-looking statements can be identified by words such as "anticipate," "believe," estimate," "expect," "goal," "intend," "likely," "may," "plan," "project," "seek," "shoul ...

New Integration Combines EagleView’s Precise Aerial Data with ServiceTitan’s Estimating and Proposal Capabilities, Streamlining Workflows Driving Higher Close RatesLOS ANGELES, June 05, 2025 (GLOBE NEWSWIRE) -- ServiceTitan (Nasdaq: TTAN), the software platform that powers the trades, today announced the availability of its integration with EagleView, a leading provider of aerial roofing measurements. This new integration brings EagleView’s advanced property data directly to contractors, equipping them with ...

Financial Performance - Gross transaction volume (GTV) for Q1 2026 reached $17.7 billion, a year-over-year growth of 22% compared to $14.5 billion in Q1 2025[3] - Total revenue for Q1 2026 was $215.7 million, reflecting a 27% increase from $170.3 million in Q1 2025[3] - Non-GAAP income from operations for Q1 2026 was $16.2 million, with a non-GAAP operating margin of 7.5%, up from 1.9% in Q1 2025[3] - Platform revenue for Q1 2026 was $208 million, showing a consistent year-over-year growth of 27%[3] - The company reported a GAAP loss from operations of $49.5 million in Q1 2026, an improvement from a loss of $53.4 million in Q1 2025[3] - Non-GAAP income from operations for Q2 2026 is projected to be between $17 million and $18 million, and for the full fiscal year 2026 between $54 million and $59 million[4] - The company expects total revenue for Q2 2026 to be between $228 million and $230 million, and for the full fiscal year 2026 to be between $910 million and $920 million[4] Cash Flow and Expenses - Net cash used in operating activities decreased to $14.6 million in Q1 2026 from $19.2 million in Q1 2025[3] - Cash used in operating activities for Q2 2025 was $14,570,000, an improvement from $19,224,000 in Q2 2024[18] - Net cash used in investing activities was $7,764,000 in Q2 2025, compared to $6,597,000 in Q2 2024[18] - The company reported a net decrease in cash, cash equivalents, and restricted cash of $21,954,000 for the period, down from $30,929,000 in the previous year[18] - The ending cash balance for the period was $420,892,000, compared to $117,934,000 at the end of the same period in 2024[18] Profitability Metrics - Net dollar retention rate remains above 110%, indicating strong customer retention and expansion[3] - Non-GAAP net income reached $17,897,000 in Q2 2025, up from $212,000 in Q2 2024, marking a substantial increase in profitability[32] - Non-GAAP net income per share (diluted) was $0.18 for Q2 2025, while the GAAP net loss per share (diluted) was $(0.51)[33] - Free cash flow for Q2 2025 was $(22,334,000), slightly improved from $(24,637,000) in Q2 2024, reflecting better cash management[34] Operating Expenses - Non-GAAP sales and marketing expense was $56,375,000 in Q2 2025, up from $44,635,000 in Q2 2024, indicating a 26.4% increase[27] - Non-GAAP research and development expense increased to $55,198,000 in Q2 2025 from $46,386,000 in Q2 2024, a rise of 19.0%[28] - Non-GAAP general and administrative expense was $30,974,000 in Q2 2025, compared to $24,406,000 in Q2 2024, marking a 27.0% increase[29] - Stock-based compensation expense increased to $33,260,000 in Q2 2025 from $20,572,000 in Q2 2024, indicating higher costs associated with employee compensation[32] Operational Efficiency - Non-GAAP operating margin improved to 7.5% in Q2 2025, compared to 1.9% in Q2 2024, indicating a positive trend in operational efficiency[31] - GAAP operating margin improved to (23.0)% in Q2 2025 from (31.4)% in Q2 2024, reflecting enhanced operational performance[31] - The loss on operating lease assets decreased to $8,032,000 in Q2 2025 from $20,081,000 in Q2 2024, indicating better asset management[30]

LOS ANGELES, June 05, 2025 (GLOBE NEWSWIRE) -- ServiceTitan (NASDAQ: TTAN), the software platform that powers the trades, today announced financial results for the fiscal first quarter ended April 30, 2025. “I am humbled by the way that our team, in partnership with our customers, performed this quarter,” said Ara Mahdessian, Co-Founder and CEO. “The quality and breadth of execution underscore our opportunity to transform the lives of every hardworking contractor in the trades.” “The ROI we deliver to our c ...

Core Viewpoint - ServiceTitan, Inc. will report its financial results for the fiscal first quarter ended April 30, 2025, on June 5, 2025, and will provide an outlook for fiscal year 2026 [1]. Group 1: Financial Reporting - The financial results will be announced after market close on June 5, 2025 [1]. - A conference call will be held at 2:00 p.m. Pacific Time (5:00 p.m. Eastern Time) on the same day to discuss the results [2]. Group 2: Company Overview - ServiceTitan is a software platform that supports trades businesses with a cloud-based, end-to-end solution [3]. - The platform provides contractors with tools to manage their business operations and enhance customer experience [3]. - ServiceTitan aims to equip tradespeople with technology in an industry that has been historically underserved [3].

Core Insights - The exterior services industry, particularly roofing contractors, is focusing on revenue growth and profitability despite challenges such as rising material prices, labor shortages, and increased overhead costs [1][3][4] Group 1: Industry Challenges - 76% of contractors aim to grow revenue in 2025, but only 56% expect to achieve this due to challenges like increasing material prices (64%), labor shortages (58%), and rising labor and overhead costs (53%) [1][3] - The industry must balance innovation, customer-first execution, and financial discipline to drive sustainable growth [1][2] Group 2: Optimization Strategies - 62% of contractors are optimizing overhead costs, 56% are focusing on labor costs, and 37% are improving marketing efficiency to enhance profit margins [4] - 18% of contractors plan to invest in additional software, while 37% prioritize comprehensive features tailored to the industry [7] Group 3: Growth Opportunities - Contractors are expanding into new business lines, with 23% entering metal roofing, 21% adding new locations, and 6% acquiring other businesses [5] - 40% of respondents are considering adding siding, while 35% see opportunities in entering the commercial sector [5] Group 4: Customer Experience Focus - Modernizing and digitizing the customer experience is a key goal for 31% of contractors, with 52% emphasizing the importance of customizing and personalizing customer interactions [6] - Digital transformation and enhancing online presence are seen as significant opportunities by 42% of respondents [6]

Core Insights - ServiceTitan has announced a strategic partnership with Cobalt Service Partners to enhance growth and efficiency for Cobalt's expanding portfolio of commercial access solutions businesses [1][2] - Cobalt has rapidly grown to include 12 market-leading brands within just over a year, indicating significant market traction and potential [1] - The partnership aims to leverage ServiceTitan's technology to provide commercial contractors with tools for profitable and sustainable growth [2][3] Company Overview - Cobalt Service Partners focuses on acquiring and building market-leading access solutions businesses, emphasizing technology and operational excellence to support growth [8] - ServiceTitan is a cloud-based software platform designed to empower trades businesses, providing an integrated solution for managing operations and enhancing customer experience [7] Technology and Tools - The partnership will utilize ServiceTitan's technology suite, which includes project management, real-time costing, AI-powered profit predictors, and mobile-first field applications [4][3] - Key features of the technology include inventory management, accounting automation, and deep integrations with other essential tech platforms [4] Market Context - The commercial contracting industry is increasingly investing in technology to address challenges such as rising costs, labor shortages, and cash flow issues [6] - ServiceTitan's recent industry report highlights the trend of contractors seeking technological solutions to improve efficiency and competitiveness [6]