TTAN
Servicetitan, INC
NASDAQ
10-K: ServiceTitan's 2025 10-K Filing Reveals Growth Amidst Losses, Highlights AI Integration
Sentiment:
Annual Results
1 April 2025 9:28 PM
ServiceTitan's 10-K filing for fiscal year 2025 showcases revenue growth driven by its platform and strategic initiatives, despite ongoing net losses and significant investments in technology and expansion.
Worse than expected
The company's net loss increased from $195.1 million in fiscal year 2024 to $239.1 million in fiscal year 2025.
Summary
- ServiceTitan's 10-K filing reports a net loss of $239.1 million for fiscal year 2025, compared to a net loss of $195.1 million in fiscal year 2024.
- Revenue increased to $771.9 million in fiscal year 2025 from $614.3 million in fiscal year 2024, a 26% increase.
- The company emphasizes its focus on increasing Gross Transaction Volume (GTV) on its platform, which reached $68.5 billion in fiscal year 2025.
- ServiceTitan is investing heavily in AI, machine learning, and generative AI (GenAI) to enhance its platform and drive customer ROI.
- The company's multi-class stock structure concentrates voting power with the Co-Founders, Ara Mahdessian and Vahe Kuzoyan.
- ServiceTitan faces competition from established and emerging companies in the trades software market.
- The company's gross dollar retention rate remained above 95% for fiscal years 2025, 2024 and 2023.
- ServiceTitan's platform is used by approximately 9,000 Active Customers, defined as those with over $10,000 of annualized billings.
Sentiment
Score: 6
Explanation: The document presents a mixed sentiment. While revenue growth is positive, the increasing net losses and competitive landscape temper the overall outlook. The company's strategic focus on AI and customer retention are encouraging, but the risks associated with its multi-class stock structure and reliance on third parties warrant caution.
Positives
- Revenue increased by 26% year-over-year, indicating strong growth in the business.
- High gross dollar retention rate (above 95%) suggests strong customer loyalty and satisfaction.
- Focus on AI and machine learning demonstrates a commitment to innovation and improving customer value.
- Increase in GTV indicates growing adoption and usage of the ServiceTitan platform by its customers.
- The company has remediated material weaknesses in internal control over financial reporting.
Negatives
- The company has a history of losses and incurred a net loss of $239.1 million in fiscal year 2025.
- The multi-class stock structure concentrates voting power with the Co-Founders, potentially limiting shareholder influence.
- The company faces intense competition in the trades software market.
- The company is subject to payment processing risk and relies on third-party payment processors.
Risks
- Failure to manage growth effectively could negatively impact the business.
- Inability to achieve or sustain profitability in the future.
- Competition from established and new companies offering similar services.
- Cybersecurity breaches or other incidents could harm the company's reputation and financial results.
- Economic conditions and factors affecting the trades industry could adversely affect demand for the platform.
- Reliance on third-party data centers and software could lead to service disruptions.
- The company's business is sensitive to events and trends that impact spend across the trades, including natural disasters, pandemics and climate change.
Future Outlook
ServiceTitan intends to continue investing in its platform to address the needs of additional trades and expand its presence outside of the United States and Canada.
Management Comments
- ServiceTitan was born in the trades and built for the trades.
- Our software provides an end-to-end, cloud-based software platform that connects and manages a wide array of business workflows.
- We believe we have the largest proprietary data asset in our industry, which means we can see and learn from an industry-specific dataset; and we are the system of record for our customers, solving end-to-end workflow.
Industry Context
The trades industry is undergoing rapid professionalization and digitization, with increasing adoption of technology solutions. ServiceTitan aims to be the leading platform in this evolving market.
Comparison to Industry Standards
- ServiceTitan competes with software vendors offering point-specific tools, horizontal solutions, legacy on-premise field service management applications, and narrow bundled solutions.
- Competitors include Salesforce, SAP, FieldEdge, Workwave, ServiceTrade, AccuLynx, BuildOps, HouseCall Pro, JobNimbus and Jobber.
- ServiceTitan differentiates itself through its cloud-based platform, ease of deployment, user experience, industry expertise, product breadth, customer support, mobile capabilities, and innovation capacity.
Stakeholder Impact
- Shareholders: The multi-class stock structure concentrates voting power with the Co-Founders, potentially limiting shareholder influence.
- Employees: The company has implemented workforce reductions in the past to align investments with strategic priorities.
- Customers: The company is focused on improving customer outcomes through its platform and AI-driven insights.
Next Steps
- Continue to invest in the platform to address the needs of additional trades.
- Expand the usage of the platform outside of the United States and Canada.
- Focus on retaining and expanding existing customer relationships.
- Drive adoption of add-on products.
- Build new add-on products.
Key Dates
- December 12, 2024: Class A common stock began trading on the Nasdaq Global Select Market under the symbol TTAN.
- December 13, 2024: ServiceTitan completed its initial public offering (IPO).
- March 15, 2025: As of this date, 76,732,506 shares of Class A common stock and 13,404,097 shares of Class B common stock were outstanding.
Keywords
ServiceTitan, 10-K, financial results, trades software, AI, GTV, revenue, net loss, customer retention, cloud platform
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.