Financial Position - As of January 31, 2025, the company had cash and cash equivalents of $441.8 million, excluding restricted cash of $1.0 million, and $140.0 million available under the Credit Agreement[389]. - Total debt as of January 31, 2025, was $105.1 million, consisting of a Term Loan of $107.0 million, net of unamortized debt issuance costs[393]. - The company anticipates that existing cash and cash equivalents will be sufficient to support working capital and capital expenditure requirements for at least 12 months from the date of the report[390]. Cash Flow - The company reported net cash provided by operating activities of $37.1 million for fiscal 2025, compared to a net cash used of $39.7 million in fiscal 2024[395][396]. - For fiscal 2025, net cash used in investing activities was $22.8 million, primarily for investments in capitalized internal-use software and property and equipment[397]. - The company generated net cash provided by financing activities of $279.7 million for fiscal 2025, mainly from the IPO proceeds of $674.5 million[399]. - The company experienced an increase in accounts receivable of $17.7 million due to revenue growth, impacting cash flows from operating activities[395]. Financial Performance - The company has a history of losses, reporting a net loss of $239.1 million for fiscal 2025, which was adjusted for non-cash charges of $306.2 million[395]. Accounting Policies and Estimates - The company has adopted new accounting pronouncements and has not yet adopted certain new accounting standards as of the report date[401]. - The preparation of consolidated financial statements requires significant estimates and assumptions that could lead to actual results differing from reported amounts[402]. - Critical accounting policies involve significant judgment and complexity, impacting the understanding of the company's financial condition[404]. - Revenue recognition is a key accounting policy that may require significant judgment in determining distinct performance obligations[405]. - Stock-based compensation is a critical accounting policy, with the fair value of common stock being a primary input for measuring grant date fair value[407]. - The company used a hybrid approach to estimate the fair value of common stock, considering both IPO and stay private scenarios[410]. - Acquisitions require management to make judgments and estimates regarding the fair value of assets acquired and liabilities assumed[415]. Regulatory and Compliance - The Credit Agreement includes covenants that set minimum revenue thresholds and require the maintenance of minimum liquidity[391]. - The company is classified as an emerging growth company under the JOBS Act, allowing it to delay adopting new accounting standards[416]. Operational Risks - The company has incorporated traditional AI, machine learning, and generative AI into some of its products, which may present operational and reputational risks[20].

Financial Data and Key Metrics Changes - Total revenue for fiscal year 2025 reached $772 million, representing a 26% year-over-year growth, with subscription revenue growing by 28% year-over-year [8][19] - Q4 total revenue was $209.3 million, up 29% year-over-year, driven by a gross transaction volume (GTV) of $17 billion, which also grew by 26% year-over-year [19][20] - Q4 operating income was $6.9 million, leading to an operating margin of 3.3%, an improvement of 200 basis points year-over-year [22] - Free cash flow for Q4 was $10.8 million, a significant increase from negative $2.2 million in the prior year [22] Business Line Data and Key Metrics Changes - Subscription revenue in Q4 was $156.7 million, up 31% year-over-year, while usage revenue was $43.4 million, up 26% year-over-year [20] - Professional services revenue in Q4 was $9.2 million, contributing to the overall revenue growth [21] - Net dollar retention exceeded 110% for the quarter, indicating strong customer expansion [21] Market Data and Key Metrics Changes - The company serves a large and durable market, with North American customers spending approximately $1.5 trillion annually on trades services [9] - The company exited fiscal year 2025 with approximately 9,500 total active customers, an 18% increase year-over-year [22] Company Strategy and Development Direction - The company aims to be synonymous with the trades by expanding its enterprise capabilities, increasing pro product adoption, and deepening its presence in commercial and roofing sectors [13][15] - The focus is on creating value for customers through high ROI solutions, which in turn drives growth for the company [7][12] - The company is committed to becoming the operating system for the trades, leveraging partnerships and technology to enhance customer success [11][90] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's growth trajectory, citing strong performance in existing customer segments and the potential for new product adoption [19][63] - The management acknowledged the impact of macroeconomic conditions but noted that historical performance has shown resilience in job growth despite economic cycles [60] - The company is monitoring external variables closely, including weather patterns and macroeconomic shifts, to inform its guidance and operational strategies [64][97] Other Important Information - The company achieved free cash flow positivity for the first time in fiscal year 2025, marking a significant milestone [8] - The management highlighted the importance of customer success metrics, shifting focus to include expansion as a core KPI starting in fiscal year 2026 [24] Q&A Session Summary Question: What contributed to better linearity of new business in Q4? - Management attributed the unusual linearity to momentum from the Pantheon event and excitement surrounding the IPO, leading to more deals closing earlier in the quarter than usual [29][30] Question: What are the new opportunities available with the new products? - Management indicated that while new products take time to mature, they expect them to be significant growth drivers in fiscal year 2027 and beyond [31] Question: How does the company view its position in heavy construction? - Management clarified that they focus on specialty trade subcontractors rather than general contractors, seeing opportunities for coexistence rather than direct competition with firms like Procore [44][45] Question: How does the company plan to drive expansion through customer success managers (CSMs)? - The strategy involves CSMs helping customers better utilize products, which is expected to lead to revenue growth and margin improvement [51] Question: How does inflation impact the company's performance? - Management noted that while inflation could affect average ticket sizes, they have not yet observed a significant impact on jobs performed or average ticket [60][78] Question: What is the outlook for free cash flow in fiscal year 2026? - Management indicated that free cash flow should align closely with non-GAAP operating income, with seasonal dynamics considered [71] Question: How does the company view the impact of AI on its products? - Management highlighted that AI is expected to enhance existing pro products and drive monetization opportunities, with current AI products already showing strong customer adoption [100]

Financial Performance - Total revenue for Q4 FY 2025 increased by 29% year-over-year to $209.3 million, with platform revenue rising by 30% to $200.1 million[4] - GAAP net loss for Q4 FY 2025 was ($100.9) million, compared to ($51.4) million in Q4 FY 2024, while non-GAAP net income was $7.5 million, up from a non-GAAP net loss of ($0.8) million in the same period last year[4] - For the full year FY 2025, total revenue increased by 26% year-over-year to $771.9 million, with platform revenue up 27% to $739.5 million[4] - GAAP loss from operations for FY 2025 was ($230.0) million, compared to ($182.9) million for FY 2024, while non-GAAP income from operations was $25.2 million, up from a non-GAAP loss of ($17.1) million in the previous year[4] - Net loss for the three months ended January 31, 2025, was $100,943 thousand, compared to a loss of $51,412 thousand in the same period of 2024, indicating a deterioration in performance[22] - GAAP loss from operations for the three months ended January 31, 2025, was $99,866 thousand, compared to a loss of $48,091 thousand in the same period of 2024[33] - GAAP net loss for the three months ended January 31, 2025, was $100,943 thousand, compared to a loss of $51,412 thousand in the same period of 2024[35] Cash Flow and Liquidity - Cash and cash equivalents totaled $441.8 million as of January 31, 2025, with net cash generated by operating activities at $15.4 million for Q4 FY 2025, compared to $5.9 million in Q4 FY 2024[7] - Cash flows from operating activities provided $15,427 thousand in Q1 2025, a substantial increase from $5,862 thousand in Q1 2024[22] - The company reported a net cash increase of $307,760 thousand in Q1 2025, compared to a decrease of $3,302 thousand in Q1 2024[22] - Cash and cash equivalents surged to $441,802 thousand as of January 31, 2025, compared to $146,710 thousand in 2024, representing an increase of 201.5%[20] - Non-GAAP free cash flow for the three months ended January 31, 2025, was $10,792 thousand, compared to a negative free cash flow of $2,177 thousand in the same period of 2024[36] Customer Metrics - Total active customers increased by 18% year-over-year to approximately 9,500 as of January 31, 2025[7] - Net dollar retention was greater than 110% for Q4 FY 2025, and gross dollar retention was greater than 95% for FY 2025[7] Future Projections - The company expects total revenue for Q1 FY 2026 to be in the range of $207 million to $209 million, with non-GAAP income from operations projected between $12 million and $13 million[13] - For the full year FY 2026, total revenue is expected to be in the range of $895 million to $905 million, with non-GAAP income from operations anticipated between $48 million and $53 million[13] Assets and Liabilities - Total assets increased to $1,768,648 thousand as of January 31, 2025, up from $1,517,666 thousand in 2024, representing a growth of 16.5%[20] - Current assets rose significantly to $572,766 thousand, compared to $249,231 thousand in the previous year, marking a 129.0% increase[20] - Total liabilities decreased to $314,064 thousand as of January 31, 2025, down from $366,105 thousand in 2024, reflecting a reduction of 14.2%[20] Expenses - GAAP sales and marketing expense for the three months ended January 31, 2025, was $69,735,000, compared to $56,689,000 in 2024, showing an increase in marketing investments[30] - Non-GAAP research and development expense for the three months ended January 31, 2025, was $56,938,000, up from $43,900,000 in 2024, reflecting increased investment in innovation[31] - GAAP general and administrative expense for the three months ended January 31, 2025, was $92,250,000, compared to $37,194,000 in 2024, indicating a rise in administrative costs[32] - Stock-based compensation expense increased to $94,679 thousand in Q1 2025, compared to $30,417 thousand in Q1 2024, showing a significant rise of 211.5%[22] - Stock-based compensation expense and related employer payroll taxes represented 38% of total expenses for the three months ended January 31, 2025, up from 19% in the same period of 2024[34] Profitability - GAAP gross profit for the three months ended January 31, 2025, was $146,289,000, compared to $110,135,000 for the same period in 2024, reflecting a significant increase[29] - Non-GAAP gross profit for the same period was $153,494,000, up from $117,661,000 in 2024, indicating strong operational performance[29] - Non-GAAP income from operations for the three months ended January 31, 2025, was $6,889 thousand, an increase from $2,126 thousand in the same period of 2024[33] - Non-GAAP operating margin for the three months ended January 31, 2025, improved to 3% from 1% in the same period of 2024[34] Strategic Focus - The company plans to continue focusing on non-GAAP financial measures to evaluate operating performance, which may not be comparable to similar measures disclosed by other companies[23][24] - The company plans to exclude certain non-cash expenses from internal management reporting to provide clearer insights into core operating performance[25] - The company incurred restructuring charges in fiscal 2024 and 2025 due to workforce reductions, impacting overall expenses[26]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, DC 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended October 31, 2024 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from _______________ to _______________ Commission File Number: 001-42434 Indicate by check mark whether the registrant (1) has filed all reports required to be fi ...

"We are pleased to deliver fiscal third quarter financial performance ahead of the midpoint of our flash results," said Vahe Kuzoyan, co-founder and President. "Our customers are expanding well and we are pleased with strong early adoption of our new Sales Pro and Contact Center Pro products." Third Quarter Fiscal 2025 Financial Highlights: Revenue: Loss from Operations: Net Loss: Exhibit 99.1 ServiceTitan Announces Third Quarter Fiscal 2025 Financial Results LOS ANGELES – January 13, 2025 – ServiceTitan (N ...