TTAN
Servicetitan, INC
NASDAQ
8-K: ServiceTitan Announces Fiscal Third Quarter 2025 Financial Results, Revenue Up 24%
Sentiment:
Earnings Release
13 January 2025 4:05 PM
ServiceTitan reports a 24% year-over-year increase in total revenue for the third quarter of fiscal year 2025, reaching $199.3 million.
Better than expected
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.
Summary
- ServiceTitan announced its financial results for the third quarter of fiscal year 2025, which ended on October 31, 2024.
- Total revenue increased by 24% year-over-year to $199.3 million.
- Platform revenue specifically increased by 26% year-over-year to $191.2 million.
- The GAAP loss from operations was ($44.0) million, compared to ($36.1) million in the same quarter of the previous year.
- Non-GAAP income from operations was $1.6 million, a significant improvement from the non-GAAP loss of ($4.3) million in the prior year's quarter.
- GAAP net loss was ($46.5) million, compared to ($39.7) million in the third quarter of fiscal 2024.
- Non-GAAP net loss improved to ($1.1) million from ($7.2) million year-over-year.
- Cash and cash equivalents totaled $133.8 million as of October 31, 2024.
- Net cash generated by operating activities was $15.5 million, a substantial increase from $0.4 million in the prior year.
- Non-GAAP free cash flow was $10.6 million, compared to ($6.2) million in the third quarter of fiscal 2024.
- Net dollar retention was greater than 110% for the quarter.
- Gross Transaction Volume (GTV) reached $17.8 billion, a 20% year-over-year increase.
- For the fourth quarter of fiscal 2025, the company expects total revenue between $199.0 million and $201.0 million and non-GAAP income from operations between $3.0 million and $4.0 million.
- For the full fiscal year 2025, total revenue is projected to be between $761.6 million and $763.6 million, with non-GAAP income from operations between $21.4 million and $22.4 million.
Sentiment
Score: 7
Explanation: The sentiment is positive due to strong revenue growth, improved cash flow, and positive management commentary, although GAAP losses persist.
Positives
- Total revenue increased by 24% year-over-year to $199.3 million.
- Platform revenue increased by 26% year-over-year to $191.2 million.
- Non-GAAP income from operations was $1.6 million, compared to a non-GAAP loss from operations of ($4.3) million for the third quarter of fiscal 2024.
- Net cash generated by operating activities was $15.5 million, compared to $0.4 million for the third quarter of fiscal 2024.
- Non-GAAP free cash flow was $10.6 million, compared to ($6.2) million for the third quarter of fiscal 2024.
- Net dollar retention was greater than 110% for the third quarter of fiscal 2025.
- Gross Transaction Volume (GTV) was $17.8 billion, up 20% year-over-year.
Negatives
- GAAP loss from operations was ($44.0) million for the third quarter of fiscal 2025, compared to ($36.1) million for the third quarter of fiscal 2024.
- GAAP net loss was ($46.5) million for the third quarter of fiscal 2025, compared to ($39.7) million for the third quarter of fiscal 2024.
Risks
- The company's expectations and beliefs may not materialize, and actual results are subject to risks and uncertainties.
- These risks are detailed in the company's Prospectus dated December 11, 2024, and other filings with the SEC.
Future Outlook
The company expects total revenue between $199.0 million and $201.0 million and non-GAAP income from operations between $3.0 million and $4.0 million for the fourth quarter of fiscal 2025. For the full fiscal year 2025, total revenue is projected to be between $761.6 million and $763.6 million, with non-GAAP income from operations between $21.4 million and $22.4 million.
Management Comments
- Building a generational business that is the operating system for the trades is our life's work, said Ara Mahdessian, co-founder and CEO.
- We recognize that the only thing more exciting than how far we have come, is just how far we have yet to go.
- Healthy fiscal third quarter business performance is further evidence that our strategy is working.
- Our customers are expanding well and we are pleased with strong early adoption of our new Sales Pro and Contact Center Pro products, said Vahe Kuzoyan, co-founder and President.
Industry Context
ServiceTitan operates in the SaaS sector, providing solutions for trades businesses, and its performance reflects the increasing adoption of technology in traditionally underserved industries. The company's growth and financial metrics can be compared to other SaaS providers targeting specific verticals.
Comparison to Industry Standards
- ServiceTitan's net dollar retention rate of over 110% is a strong indicator of customer satisfaction and loyalty, placing it favorably among SaaS companies.
- Companies like Veeva Systems and Salesforce often achieve similar or higher retention rates, demonstrating strong market positions.
- The 24% revenue growth is solid, but other high-growth SaaS companies, such as Datadog or Snowflake, have demonstrated higher growth rates in certain periods.
- ServiceTitan's focus on the trades industry provides a niche market, potentially leading to more consistent growth compared to companies targeting broader markets.
Stakeholder Impact
- Shareholders will likely react positively to the revenue growth and improved cash flow.
- Employees may feel more secure due to the company's improved financial performance.
- Customers should benefit from the company's continued investment in its platform.
- Suppliers and creditors can be more confident in the company's ability to meet its obligations.
Next Steps
- The company will hold a conference call to discuss the financial results on January 13, 2025, at 2:00 p.m. Pacific Time.
- A webcast replay will be available on the investor relations website for 12 months.
Key Dates
- December 11, 2024: Date of ServiceTitan's Prospectus filing.
- December 12, 2024: Prospectus filed with the SEC.
- January 13, 2025: Date of the press release and conference call regarding Q3 fiscal 2025 financial results.
- January 31, 2025: End of the fourth quarter of fiscal year 2025.
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.
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.
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
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.
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.
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.
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.
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.
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.
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.
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.