TTAN
Servicetitan, INC
NASDAQ
8-K: ServiceTitan Reports Strong Fiscal First Quarter Growth, Significant Profitability Improvement
Sentiment:
Quarterly Financial Results
5 June 2025 4:07 PM
ServiceTitan, Inc. announced robust financial results for its fiscal first quarter ended April 30, 2025, showcasing substantial revenue growth and a significant improvement in non-GAAP operating income and margin.
Better than expected
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.
Summary
- ServiceTitan reported total revenue of $215.7 million for the fiscal first quarter ended April 30, 2025, marking a 27% year-over-year increase from $170.3 million in the same period last year.
- Gross transaction volume (GTV) reached $17.7 billion, up 22% from $14.5 billion in the prior year's first quarter.
- The company achieved non-GAAP income from operations of $16.2 million, a substantial increase from $3.3 million in the fiscal first quarter of 2025, with non-GAAP operating margin improving to 7.5% from 1.9%.
- GAAP loss from operations narrowed to $(49.5) million from $(53.4) million year-over-year.
- Net cash used in operating activities improved to $(14.6) million from $(19.2) million, and non-GAAP free cash flow improved to $(22.3) million from $(24.6) million.
- Net dollar retention remained strong at over 110% for both periods.
- For the second fiscal quarter of 2026, ServiceTitan expects total revenue between $228 million and $230 million, and non-GAAP income from operations between $17 million and $18 million.
- For the full fiscal year 2026, the company projects total revenue in the range of $910 million to $920 million, and non-GAAP income from operations between $54 million and $59 million.
Sentiment
Score: 8
Explanation: The sentiment is highly positive due to strong revenue growth, significant improvements in non-GAAP profitability and operating margins, and a positive financial outlook. The reduction in GAAP losses and improved cash flow also contribute to a favorable view, despite still being negative.
Positives
- Total revenue grew by a strong 27% year-over-year to $215.7 million, indicating robust demand for its software platform.
- Non-GAAP income from operations significantly increased to $16.2 million from $3.3 million, demonstrating improved operational efficiency and profitability.
- Non-GAAP operating margin expanded substantially to 7.5% from 1.9%, reflecting better cost management relative to revenue growth.
- GAAP loss from operations narrowed to $(49.5) million from $(53.4) million, showing progress towards GAAP profitability.
- Net cash used in operating activities improved to $(14.6) million from $(19.2) million, indicating a reduced cash burn from core operations.
- Non-GAAP free cash flow also improved to $(22.3) million from $(24.6) million.
- Net dollar retention remained consistently strong at over 110%, suggesting high customer satisfaction and expansion within existing accounts.
- The company provided a positive financial outlook for both the second quarter and the full fiscal year 2026, projecting continued revenue growth and non-GAAP operating income.
Negatives
- Despite improvements, the company continues to report a GAAP net loss of $(46.364) million and negative GAAP loss from operations of $(49.5) million.
- Net cash used in operating activities and non-GAAP free cash flow remain negative, indicating the company is still consuming cash from operations, though at a reduced rate.
- The year-over-year GTV growth rate slightly decelerated to 22% from 23% in the prior year's first quarter.
Risks
- The document refers to more comprehensive risk factors detailed in the company's Annual Report on Form 10-K for fiscal 2025, filed with the SEC on April 2, 2025. Specific risks are not enumerated within this 8-K filing or its exhibit.
Future Outlook
ServiceTitan expects total revenue for the second fiscal quarter of 2026 to be between $228 million and $230 million, with non-GAAP income from operations projected to be between $17 million and $18 million. For the full fiscal year 2026, the company anticipates total revenue in the range of $910 million to $920 million and non-GAAP income from operations between $54 million and $59 million. The company noted it cannot provide a GAAP outlook due to the difficulty of estimating certain non-GAAP excluded items like stock-based compensation expense.
Management Comments
- Ara Mahdessian, Co-Founder and CEO, expressed humility regarding the team's performance in partnership with customers, emphasizing that the quality and breadth of execution highlight the opportunity to transform the lives of contractors in the trades.
- Vahe Kuzoyan, Co-Founder and President, stated that the ROI delivered to customers remains their greatest advantage, and that the company is building 'stacking S-curves' to deliver transformative customer outcomes, with all four primary areas of focus for the year off to a strong start.
Industry Context
ServiceTitan operates in the software platform sector, specifically targeting the historically underserved trades industry. Its continued strong revenue growth and improving non-GAAP profitability suggest a successful penetration and expansion within this niche, indicating that digital transformation in the trades remains a significant and growing market opportunity. The consistent net dollar retention rate also points to the stickiness and value proposition of its cloud-based, end-to-end solution for contractors.
Comparison to Industry Standards
- ServiceTitan's 27% year-over-year revenue growth is strong for a SaaS company of its size, often exceeding the average growth rates of more mature enterprise SaaS providers, indicating it is still in a high-growth phase.
- The improvement in non-GAAP operating margin from 1.9% to 7.5% demonstrates a positive trend towards profitability, aligning with the industry's increasing focus on efficient growth and the 'Rule of 40' for SaaS companies, though further margin expansion would be needed to fully meet this benchmark.
- A net dollar retention rate consistently above 110% is considered excellent within the SaaS industry, comparable to top-tier software companies, and signifies strong product-market fit and customer lifetime value.
Stakeholder Impact
- Shareholders: Positive impact due to strong revenue growth, improved profitability metrics (non-GAAP), and a positive outlook, which could lead to increased investor confidence and potential share price appreciation.
- Customers: The company's focus on delivering 'ROI' and 'transformative customer outcomes' suggests continued investment in product development and customer success, benefiting existing and prospective customers in the trades.
- Employees: Management's positive comments about team performance and the company's growth trajectory could foster a positive work environment and potential opportunities, though past restructuring charges indicate ongoing operational adjustments.
Next Steps
- ServiceTitan will hold a conference call and webcast on June 5, 2025, at 2:00 p.m. Pacific Time (5:00 p.m. Eastern Time) to discuss these financial results and business highlights.
- Additional information will be set forth in the company's Quarterly Report on Form 10-Q for the fiscal first 2026 quarter ended April 30, 2025.
Key Dates
- April 2, 2025: Filing date of the Annual Report on Form 10-K for fiscal 2025.
- April 30, 2025: End of the fiscal first quarter for which financial results are announced.
- June 5, 2025: Date of the Current Report on Form 8-K filing and press release announcing fiscal first quarter results; also the date of the conference call to discuss results.
- July 31, 2025: End of the fiscal second quarter for which financial outlook is provided.
- January 31, 2026: End of the full fiscal year for which financial outlook is provided.
Keywords
ServiceTitan, Software as a Service, SaaS, Trades Businesses, Financial Results, Earnings, Revenue Growth, Operating Income, Gross Transaction Volume, TTAN, SEC Filing, 8-K
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.
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.
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.