TTAN
Servicetitan, INC
NASDAQ
10-Q: ServiceTitan Reports Q3 2025 Results, Revenue Up 24% Year-Over-Year
Sentiment:
Quarterly Report
14 January 2025 5:10 PM
ServiceTitan's Q3 2025 shows revenue growth driven by subscription and usage-based platform offerings, despite continued net losses.
Worse than expected
The net loss increased from $39.7 million to $46.5 million year-over-year.
Summary
- ServiceTitan's Q3 2025 revenue increased by 24% year-over-year, reaching $199.3 million.
- Platform revenue, which constitutes 96% of total revenue, grew by 26% to $191.2 million, driven by subscription and usage-based revenue.
- The company's net loss for the quarter was $46.5 million, compared to a net loss of $39.7 million in the same period last year.
- Operating expenses increased to $174.0 million, primarily due to higher sales and marketing, research and development, and general and administrative costs.
- The company completed its IPO in December 2024, receiving net proceeds of $679.0 million.
- ServiceTitan redeemed all outstanding shares of its non-convertible preferred stock for $310.6 million following the IPO.
- The company is modernizing a massive and technologically underserved industry commonly referred to as the trades.
- In fiscal 2023 and fiscal 2024 ServiceTitan processed $44.9 billion and $55.7 billion of Gross Transaction Volume (GTV), respectively.
- For the three months ended October 31, 2023 and 2024, ServiceTitan processed $14.8 billion and $17.8 billion of GTV, respectively.
Sentiment
Score: 6
Explanation: The document presents a mixed sentiment. While revenue growth is positive, the increasing net loss and rising operating expenses raise concerns. The successful IPO and debt refinancing are positive developments, but the company faces significant risks and challenges.
Positives
- Strong revenue growth driven by platform offerings.
- Successful completion of IPO and redemption of non-convertible preferred stock.
- Increase in Gross Transaction Volume (GTV) processed through the platform.
- Platform gross margin increased to 73% for the three months ended October 31, 2024, compared to 72% for the three months ended October 31, 2023, primarily due to improved efficiencies in delivering our platform at scale.
Negatives
- Net loss increased to $46.5 million in Q3 2025.
- Professional services and other gross margin decreased to (112)% for the three months ended October 31, 2024, compared to (81)% for the three months ended October 31, 2023, due to the decrease in revenue.
- Operating expenses increased significantly, impacting profitability.
- The company recorded impairment losses on operating lease assets and related property and equipment.
Risks
- Continued net losses and reliance on future revenue growth to achieve profitability.
- Intense competition in the market for software designed to serve the trades.
- Potential disruptions to the platform due to cybersecurity breaches or other incidents.
- Dependence on key personnel and the ability to attract and retain skilled employees.
- Economic conditions and factors affecting the trades industry could adversely affect demand for the platform.
- The multi-class structure of the common stock concentrates voting power.
- The trading price of the Class A common stock may be volatile.
Future Outlook
The company expects to continue making significant investments to grow its business and expand its platform, including developing new products and entering new markets.
Management Comments
- ServiceTitan remains to this day maniacally focused on the success of our customers as we fundamentally believe that our customers success leads to our success.
Industry Context
ServiceTitan operates in the trades industry, which is characterized as a massive and technologically underserved market. The company's platform aims to modernize this industry by providing end-to-end capabilities to manage complex workflows and connect key stakeholders.
Comparison to Industry Standards
- The document does not provide enough information to make a detailed comparison to industry standards.
- Comparable companies in the SaaS space include Salesforce and SAP, but their business models and target markets differ significantly from ServiceTitan.
- Benchmarking against other field service management software providers like FieldEdge, Workwave, and HouseCall Pro would provide a more relevant comparison, but specific performance data for these companies is not included in the document.
Stakeholder Impact
- Shareholders: The IPO provides liquidity but the multi-class structure concentrates voting power.
- Employees: The company has undergone workforce reductions to align investments with strategic priorities.
- Customers: The company aims to improve customer success through onboarding and support services.
- Creditors: The company has refinanced its debt, which may impact its ability to meet debt service obligations.
Next Steps
- The company plans to continue investing in research and development to expand the functionality of its platform.
- ServiceTitan intends to continue to judiciously invest in research and development to expand the functionality of our platform, to develop new add-on products and to broaden our capabilities to address new market opportunities across trades.
Key Dates
- December 2018: Company opened a subsidiary in Yerevan, Armenia.
- June 2022: Company opened a subsidiary in British Columbia, Canada.
- January 2023: Company entered into a secured credit agreement with Wells Fargo Bank, N.A.
- July 2023: Concurrent with entering into the Series H-1 redeemable convertible preferred stock purchase agreement, the Company facilitated a tender offer.
- March 2024: Company committed to a plan to align its investments more closely with its strategic priorities by reducing the Company's workforce by 42 employees.
- April 2024: Company acquired 100 % of the outstanding equity of Convex Labs Inc. (Convex).
- May 15, 2024: The tender offer window closed.
- September 2024: Company entered into an amendment to the secured credit agreement.
- October 1, 2024: Amendment to the secured credit agreement became effective.
- October 31, 2024: End of the quarterly period.
- December 11, 2024: Company's registration statement on Form S-1 related to its IPO was declared effective by the SEC.
- December 12, 2024: Company's Class A common stock began trading on the Nasdaq Global Select Market.
- December 13, 2024: Company sold 8,800,000 shares of its Class A common stock to the underwriters of the IPO.
- December 17, 2024: Company sold an additional 1,320,000 shares of its Class A common stock pursuant to the underwriters' exercise in full of their option to purchase additional shares.
- January 14, 2025: Date of report.
Keywords
TTAN
Servicetitan, INC
NASDAQ
Sector: TBD
Filings with Classifications
Worse than expected
1 July 2025 5:42 PM
Insider Trading Report
- A 10% owner and director, Bessemer Venture Partners, sold a substantial number of shares (225,277 shares) of ServiceTitan Class A Common Stock.
- Insider selling, especially by a significant holder, is generally perceived as a negative signal by the market, suggesting that the insider may believe the stock is fully valued or that better investment opportunities exist elsewhere.
Worse than expected
1 July 2025 5:36 PM
Insider Transaction Report
- Funds affiliated with a Director and 10% Owner, Byron B. Deeter, divested a substantial number of shares (225,277 shares) of ServiceTitan Class A Common Stock across two transactions. While the sales were by the funds and not directly by the individual, such significant sales by an affiliated entity of a major shareholder can be interpreted as a negative signal by the market.
Worse than expected
27 June 2025 7:08 PM
Insider Trading Report
- The document details significant insider selling by Bessemer Venture Partners, a 10% owner and director of ServiceTitan, Inc. Insider selling is generally perceived as a negative signal by the market, suggesting that a key stakeholder is reducing their exposure to the company's stock.
Worse than expected
27 June 2025 7:05 PM
Insider Transaction Report
- The sale of 137,543 shares by entities affiliated with a director and 10% owner is generally viewed as a negative signal by investors, suggesting a potential lack of confidence or a move to realize gains, which can put downward pressure on the stock price.
Worse than expected
12 June 2025 7:56 PM
Insider Transaction Report
- A significant sale of 500,000 shares by a 10% owner and director, Bessemer Venture Partners, could signal a lack of confidence or a strategic portfolio rebalancing, potentially leading to negative market perception.
Capital raise
12 June 2025 4:49 PM
Quarterly Report
- The company states, "We may be required to seek additional equity or debt financing."
- It notes that future capital requirements will depend on various factors, including business challenges, product enhancements, infrastructure improvements, and potential acquisitions.
- The company evaluates financing opportunities and acknowledges that obtaining additional financing on acceptable terms may not always be possible.
Better than expected
12 June 2025 4:49 PM
Quarterly Report
- Revenue growth of 27% significantly outpaced the prior year's comparable period.
- Net loss decreased by $9.7 million, indicating improved financial performance.
- Gross profit increased by 40%, and gross margins improved across the board, reflecting operational efficiencies.
- Net cash used in operating activities decreased, and non-GAAP free cash flow improved, showing better cash management.
- Gross Transaction Volume (GTV) increased by $3.2 billion, and the net dollar retention rate remained strong at over 110%, indicating robust customer adoption and expansion.
Better than expected
5 June 2025 4:07 PM
Quarterly Financial Results
- Total revenue grew 27% year-over-year to $215.7 million, exceeding the prior year's growth rate.
- Non-GAAP income from operations significantly increased to $16.2 million from $3.3 million in the prior year, indicating substantial improvement in core profitability.
- Non-GAAP operating margin improved to 7.5% from 1.9% year-over-year, reflecting enhanced operational efficiency.
- GAAP loss from operations decreased to $(49.5) million from $(53.4) million, showing a reduction in overall losses.
- Net cash used in operating activities improved to $(14.6) million from $(19.2) million, indicating a reduced cash burn.
Worse than expected
1 April 2025 9:28 PM
Annual Results
- The company's net loss increased from $195.1 million in fiscal year 2024 to $239.1 million in fiscal year 2025.
Better than expected
13 March 2025 4:06 PM
Earnings Release
- The company's revenue growth exceeded expectations, with a 29% increase in Q4 and a 26% increase for the full year.
- Non-GAAP profitability improved significantly, with a shift from a loss to income from operations for both Q4 and the full year.
- Net dollar retention remained high, indicating strong customer satisfaction and upselling opportunities.
Worse than expected
14 January 2025 5:10 PM
Quarterly Report
- The net loss increased from $39.7 million to $46.5 million year-over-year.
Better than expected
13 January 2025 4:05 PM
Earnings Release
- The company's non-GAAP income from operations turned positive, indicating improved profitability.
- Net cash generated from operating activities significantly increased, showcasing better cash management.
- Non-GAAP free cash flow improved, reflecting stronger financial health.
Capital raise
10 December 2024 6:12 AM
S-1/A Filing
- ServiceTitan is conducting an initial public offering of its Class A common stock.
- The company intends to use approximately $310.6 million of the net proceeds from this offering to redeem all outstanding shares of its non-convertible preferred stock.
- The remaining net proceeds will be used for general corporate purposes, including working capital, operating expenses, and capital expenditures.
- The company may also use a portion of the net proceeds to acquire or invest in businesses, products, services, or technologies.
Worse than expected
10 December 2024 6:12 AM
S-1/A Filing
- The company's loss from operations increased by approximately 20% to 26% for the three months ended October 31, 2024 compared to the three months ended October 31, 2023.
Worse than expected
3 December 2024 6:06 AM
S-1/A Filing
- The company has a history of losses and may not be able to achieve or sustain profitability in the future.
Capital raise
3 December 2024 6:06 AM
S-1/A Filing
- The company is conducting an initial public offering of shares of its Class A common stock.
- The company plans to use approximately $310.6 million of the net proceeds from this offering to redeem all outstanding shares of its non-convertible preferred stock.
- The remaining net proceeds will be used for general corporate purposes, including working capital, operating expenses and capital expenditures.
- The company may also use a portion of the net proceeds to acquire or invest in businesses, products, services or technologies.
Capital raise
18 November 2024 11:01 AM
S-1 Filing
- ServiceTitan has filed an S-1 registration statement for its initial public offering.
- The company intends to use approximately $ million of the net proceeds from this offering to redeem all outstanding shares of its non-convertible preferred stock.
- The remaining net proceeds will be used for general corporate purposes, including working capital, operating expenses and capital expenditures.
- The company may also use a portion of the net proceeds to acquire or invest in businesses, products, services or technologies.
Worse than expected
18 November 2024 11:01 AM
S-1 Filing
- The company experienced a net loss of $195.1 million for fiscal year 2024, which is worse than expected for a company of this size.
Disclaimer: This summary was generated by artificial intelligence and its accuracy is not guaranteed. The information provided here is for general informational purposes only and does not constitute financial advice, recommendation, or endorsement of any kind. It may contain errors or omissions. You should not rely on this information to make financial decisions. Always seek the advice of a qualified financial professional before making any investment or financial decisions. Use of this information is at your own risk.