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ServiceTitan, Inc.(TTAN) - 2025 Q4 - Annual Report
TTANServiceTitan, Inc.(TTAN)2025-04-02 01:28
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Financial Position - As of January 31, 2025, the company had cash and cash equivalents of 441.8million,excludingrestrictedcashof441.8 million, excluding restricted cash of 1.0 million, and 140.0millionavailableundertheCreditAgreement[389].−TotaldebtasofJanuary31,2025,was140.0 million available under the Credit Agreement[389]. - Total debt as of January 31, 2025, was 105.1 million, consisting of a Term Loan of 107.0million,netofunamortizeddebtissuancecosts[393].−Thecompanyanticipatesthatexistingcashandcashequivalentswillbesufficienttosupportworkingcapitalandcapitalexpenditurerequirementsforatleast12monthsfromthedateofthereport[390].CashFlow−Thecompanyreportednetcashprovidedbyoperatingactivitiesof107.0 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 39.7millioninfiscal2024[395][396].−Forfiscal2025,netcashusedininvestingactivitieswas39.7 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 279.7millionforfiscal2025,mainlyfromtheIPOproceedsof279.7 million for fiscal 2025, mainly from the IPO proceeds of 674.5 million[399]. - The company experienced an increase in accounts receivable of 17.7millionduetorevenuegrowth,impactingcashflowsfromoperatingactivities[395].FinancialPerformance−Thecompanyhasahistoryoflosses,reportinganetlossof17.7 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].