Core Insights - ServiceTitan Inc. reported quarterly earnings of $0.24 per share, exceeding the Zacks Consensus Estimate of $0.15 per share, and showing a significant improvement from a loss of $0.45 per share a year ago, resulting in an earnings surprise of +60.00% [1] - The company achieved revenues of $249.16 million for the quarter ended October 2025, surpassing the Zacks Consensus Estimate by 4.50% and reflecting a year-over-year increase from $199.27 million [2] - ServiceTitan has consistently outperformed consensus EPS and revenue estimates over the last four quarters [2] Earnings Outlook - The future performance of ServiceTitan's stock will largely depend on management's commentary during the earnings call and the sustainability of the recent earnings surprise [3][4] - The current consensus EPS estimate for the upcoming quarter is $0.16 on revenues of $242.06 million, while the estimate for the current fiscal year is $0.83 on revenues of $938.37 million [7] Industry Context - The Internet - Software industry, to which ServiceTitan belongs, is currently ranked in the top 25% of over 250 Zacks industries, indicating a favorable outlook compared to lower-ranked industries [8] - Empirical research suggests a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can be tracked by investors [5]

Financial Data and Key Metrics Changes - Q3 gross transaction volume (GTV) was $21.7 billion, representing a 22% year-over-year growth [18] - Total revenue for Q3 was $249.2 million, growing 25% year-over-year [19] - Subscription revenue reached $182.8 million, a 26% year-over-year increase [19] - Usage revenue grew 24% year-over-year to $56.8 million, exceeding expectations [19] - Q3 platform gross margin was 80.2%, an improvement of 310 basis points year-over-year [19] - Free cash flow for Q3 was a record $38 million, up from $11 million in the prior year [20] Business Line Data and Key Metrics Changes - Pro products continued to be the largest driver of subscription revenue growth [12] - The introduction of Field Pro and virtual agents across the pro portfolio contributed to growth [13] - The commercial segment saw strong results with the introduction of commercial CRM and construction management capabilities [14] Market Data and Key Metrics Changes - GTV growth was led by the commercial sector, with consistent growth in HVAC and other trades within residential [18] - The customer base is diverse, with GTV insulated from supplier inventory cycles due to its focus on break/fix services [18][71] Company Strategy and Development Direction - The company aims to build the operating system for the trades, focusing on delivering real ROI to customers [5][27] - The MAX program is a key initiative aimed at automating workflows and optimizing revenue for customers [28] - The strategy includes leveraging AI to enhance customer operations and improve profitability [10][29] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's growth trajectory and the opportunity to democratize AI for the trades [6] - The company is focused on delivering sustainable high ROI to customers in resilient trades [21] - Management noted that the current economic environment remains stable, with job growth and average ticket sizes consistent [50] Other Important Information - The company paid approximately $20 million in cash for the acquisition of Conduit, which is expected to enhance cross-sell opportunities [20] - The company is experiencing strong momentum from private equity customers, who are significant adopters of pro products [36] Q&A Session Summary Question: What are the plans for achieving multi-billion-dollar revenue? - Management emphasized the importance of building the operating system for the trades and leveraging AI as a critical opportunity for growth [27] Question: How is the MAX program progressing? - The MAX program is in early stages, with a focus on ensuring success for initial participants before broader rollout [35] Question: What is the current technician to back office staff ratio? - The ratio varies by trade, with some contractors achieving over two technicians per back office staff [40] Question: Why is GTV in residential HVAC insulated from OEM volume declines? - GTV is driven by break/fix services rather than new home construction, making it less susceptible to OEM cycles [71] Question: What are the learnings from the commercial side? - There is a trend towards consolidation in the commercial space, with a focus on providing capabilities that allow for synergies similar to the residential side [60] Question: How does the company view the impact of AI on product strategy? - The rise of AI presents opportunities for new products and services, with a focus on ensuring the best market solutions for customers [90]

Financial Data and Key Metrics Changes - Q3 total revenue reached $249.2 million, growing 25% year-over-year [17] - Subscription revenue was $182.8 million, reflecting a 26% year-over-year increase [18] - Free cash flow for Q3 was a record $38 million, up from $11 million in the prior year [19] - Q3 platform gross margin improved to 80.2%, an increase of 310 basis points year-over-year [18] - Operating income for Q3 was $21.5 million, resulting in an operating margin of 8.6%, an improvement of 780 basis points year-over-year [18] Business Line Data and Key Metrics Changes - Pro products continued to be the largest driver of subscription revenue growth [12] - The introduction of Field Pro and virtual agents across the pro portfolio indicates a shift towards AI-driven solutions [13] - Professional services revenue for Q3 was $9.6 million, contributing to overall revenue growth [18] Market Data and Key Metrics Changes - Q3 gross transaction volume (GTV) was $21.7 billion, representing a 22% year-over-year growth [17] - GTV growth was primarily driven by commercial sectors, with consistent growth in HVAC and other residential trades [17] - Net dollar retention exceeded 110% for the quarter, indicating strong customer loyalty and expansion [18] Company Strategy and Development Direction - The company aims to build the operating system for the trades, focusing on delivering real ROI to customers [4] - The MAX program is a key initiative aimed at automating workflows and optimizing revenue for contractors [30] - The strategy includes leveraging AI to enhance customer experience and operational efficiency [10] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's growth trajectory, emphasizing the importance of AI in the trades [27] - The company anticipates continued strong performance in the fourth quarter, despite a one-day reduction in business days compared to the previous year [20] - Management highlighted the resilience of the markets served, particularly in essential services [17] Other Important Information - The company completed the acquisition of Conduit for approximately $20 million, which is expected to enhance cross-sell opportunities [19] - The partnership with Verisk aims to streamline claims management for contractors, particularly in the roofing sector [15] Q&A Session Summary Question: What are the plans for scaling to a multi-billion-dollar revenue company? - Management emphasized the focus on building the operating system for trades and leveraging AI as a critical opportunity for growth [27] Question: How is the MAX program progressing? - The MAX program is in early stages, with a focus on ensuring success for initial participants before broader rollout [36] Question: What is the contribution of private equity customers to growth? - Private equity customers are significant utilizers of the product, growing faster than non-sponsored customers [37] Question: What is the average technician to back office staff ratio? - The ratio varies by trade, with efficient contractors achieving higher ratios, indicating potential for increased automation and profitability [40] Question: What are the dynamics affecting Q4 guidance? - The guidance reflects typical seasonal moderation and prudent GTV forecasts, with no unusual factors impacting expectations [44] Question: How is the roofing initiative progressing? - The roofing sector is seeing strong traction, particularly with insurance-based workflows and partnerships [49] Question: What is the outlook for GTV and consumer health? - Job growth and average ticket sizes remain consistent, indicating a stable economic environment [51] Question: How does the company plan to invest in the commercial opportunity? - The focus will remain on enhancing construction capabilities and AI-driven value creation [55] Question: What are the learnings from the commercial side? - There is a trend towards consolidation, with a desire for more centralized operations among commercial contractors [60] Question: How is fintech utilization impacting usage growth? - Increased adoption of fintech products has driven higher usage rates among customers [105]

Financial Highlights - Q3FY26 total revenue reached $249 million[7] - Q3FY26 saw a YoY revenue growth of 25%[7] - Q3FY26 GTV was $22 billion, representing a YoY growth of 22%[7] - The company achieved a Q3FY26 non-GAAP operating margin of 8.6%[7] - Q3FY26 non-GAAP platform gross margin stood at 80.2%[7] - The net dollar retention rate for Q3FY26 exceeded 110%[7] Market Opportunity - The company addresses approximately $650 billion of the trades industry spend[20] - The total addressable market (TAM) is estimated to be over $1.5 trillion[21] - Potential revenue with full platform deployment is estimated at ~$13 billion[24] Customer Base - The company has approximately 9,500 active customers[41] - Over 1,000 customers generate >$100K in annualized billings, accounting for >50% of total annualized billings[41]

Core Insights - ServiceTitan has been selected as the core technology platform for TIMEPROOFUSA and Master Roofing Solutions, enabling both companies to standardize operations and accelerate national expansion [1][2][4] - TIMEPROOFUSA aims to expand to 50 branches across 30 states within the next year, addressing both residential and commercial markets [2][3] - The partnership with ServiceTitan is expected to enhance operational efficiency and consistency, supporting a 'hub-and-spoke' model for local branches [3][4] Company Overview - ServiceTitan is a cloud-based software platform designed to empower trades businesses with tools for growth, back office management, and customer experience [6] - TIMEPROOFUSA specializes in residential roof repair and replacement, with a commitment to quality and reliability [7] - Master Roofing Solutions focuses on providing premium roofing and solar solutions for home builders, emphasizing exceptional quality and timely execution [8] Industry Context - The roofing industry is characterized as fragmented and presents significant untapped opportunities for growth [4] - ServiceTitan is investing in technology tailored for roofing and exterior contractors, including partnerships with leading distributors and suppliers to enhance its platform [4]

Financial Performance - Gross transaction volume (GTV) for Q3 2026 reached $21.7 billion, a year-over-year growth of 22% compared to $17.8 billion in Q3 2025[3] - Total revenue for Q3 2026 was $249.2 million, reflecting a 25% increase from $199.3 million in Q3 2025[3] - Non-GAAP income from operations for Q3 2026 was $21.5 million, significantly up from $1.6 million in Q3 2025, resulting in a non-GAAP operating margin of 8.6%[3] - The platform revenue for Q3 2026 was $239.6 million, a 25% increase from $191.2 million in Q3 2025[3] - The company expects total revenue for Q4 2026 to be between $244 million and $246 million, and for the full fiscal year 2026, total revenue is projected to be between $951 million and $953 million[4] - Non-GAAP income from operations for Q4 2026 is anticipated to be between $16 million and $17 million, with full fiscal year 2026 expected to be between $83 million and $84 million[4] Cash Flow and Assets - Net cash provided by operating activities for Q3 2026 was $43.8 million, compared to $15.5 million in Q3 2025[3] - Total current assets increased to $644,012 thousand as of October 31, 2025, up from $572,766 thousand as of January 31, 2025, representing a growth of 12.4%[16] - Net cash provided by operating activities for the three months ended October 31, 2025, was $43,780 thousand, compared to $15,534 thousand for the same period in 2024, indicating a significant increase of 182.5%[18] - Cash and cash equivalents rose to $493,238 thousand as of October 31, 2025, compared to $441,802 thousand as of January 31, 2025, marking an increase of 11.6%[16] - The company reported a net change in cash, cash equivalents, and restricted cash of $21,753 thousand for the three months ended October 31, 2025, compared to $5,710 thousand for the same period in 2024, showing an increase of 281.5%[18] Profitability Metrics - GAAP gross profit for the three months ended October 31, 2025, was $185,055,000, compared to $138,986,000 for the same period in 2024, representing a year-over-year increase of 33.2%[26] - Non-GAAP gross profit for the three months ended October 31, 2025, was $192,119,000, up from $147,342,000 in 2024, indicating a growth of 30.4%[26] - GAAP gross margin improved to 77.2% in Q3 2025 from 72.7% in Q3 2024, while non-GAAP gross margin increased to 80.2% from 77.1% in the same period[26] - Non-GAAP net income for the three months ended October 31, 2025, was $23,814,000, compared to a loss of $1,148,000 for the same period in 2024[33] - Non-GAAP net income for the nine months ended October 31, 2025, was $74,556,000, significantly up from $9,081,000 in 2024[33] Expenses - GAAP sales and marketing expense for the three months ended October 31, 2025, was $78,270,000, an increase from $67,795,000 in 2024[29] - Non-GAAP research and development expense for the three months ended October 31, 2025, was $63,647,000, compared to $54,016,000 in 2024, showing a rise of 17.5%[30] - Non-GAAP general and administrative expense for the three months ended October 31, 2025, was $33,960,000, up from $28,189,000 in 2024, indicating a 20.0% increase[31] - Stock-based compensation expense for the three months ended October 31, 2025, was $49,660 thousand, up from $25,426 thousand in the same period of 2024, representing a substantial increase of 95.2%[18] Losses and Liabilities - The company reported a GAAP loss from operations of $42.2 million in Q3 2026, an improvement from a loss of $44.0 million in Q3 2025[3] - Net loss for the three months ended October 31, 2025, was $39,527 thousand, an improvement from a net loss of $46,460 thousand for the same period in 2024, reflecting a decrease of 14.3%[18] - Total liabilities decreased slightly to $311,651 thousand as of October 31, 2025, from $314,064 thousand as of January 31, 2025, a reduction of 0.8%[16] - The company incurred $19,781 thousand in cash outflows for business acquisitions during the three months ended October 31, 2025[18] Operational Focus - ServiceTitan continues to focus on leveraging competitive advantages to enhance automation in the trades industry[2]

Core Insights - ServiceTitan reported strong financial results for the fiscal third quarter of 2026, with significant year-over-year growth in gross transaction volume and total revenue, indicating a robust business performance [2][3] - The company aims to leverage its competitive advantages to enhance automation in the trades industry, reflecting a strategic focus on growth and innovation [1][2] Financial Performance - Gross transaction volume (GTV) reached $21.7 billion, up 22% year-over-year from $17.8 billion [2] - Total revenue for the quarter was $249.2 million, representing a 25% increase from $199.3 million in the same quarter of the previous year [2] - Platform revenue also grew by 25% year-over-year, totaling $239.6 million compared to $191.2 million [2] - Non-GAAP income from operations was $21.5 million, a significant increase from $1.6 million in the prior year, with a non-GAAP operating margin of 8.6% [2] - The company reported a GAAP loss from operations of $42.2 million, an improvement from a loss of $44.0 million in the same quarter last year [2] Operational Highlights - The company achieved a net dollar retention rate of over 110%, indicating strong customer loyalty and recurring revenue potential [2] - Cash provided by operating activities was $43.8 million, up from $15.5 million in the previous year, showcasing improved cash flow management [2] Future Outlook - For the fiscal fourth quarter of 2026, ServiceTitan expects total revenue to be between $244 million and $246 million, and non-GAAP income from operations to be between $16 million and $17 million [3] - The full fiscal year 2026 revenue is projected to be between $951 million and $953 million, with non-GAAP income from operations expected to be between $83 million and $84 million [3] Company Overview - ServiceTitan is a cloud-based software platform designed to support trades businesses, providing tools for business management and customer experience enhancement [7] - The company positions itself as a leader in democratizing technology for an industry that has historically been underserved [1][7]

ServiceTitan's consensus price target has decreased to $115 from a previous $131.33, indicating a more conservative outlook among analysts.The company is expected to report a revenue increase of 19.66% in Q3, driven by demand for AI tools and automation.Market trends and strategic moves, such as potential mergers or new product launches, could impact ServiceTitan's stock target price.ServiceTitan, Inc. (TTAN) is a leading software company that provides a cloud-based platform for home and commercial service ...

Core Insights - ServiceTitan (TTAN) is expected to report third-quarter fiscal 2026 results on December 4, 2025, with projected revenues between $237 million and $239 million, indicating a year-over-year growth of nearly 20% [1][8] - The Zacks Consensus Estimate for revenues stands at $238.45 million, reflecting a growth of 19.66% from the previous year's quarter [1] - Earnings per share consensus remains at 15 cents, suggesting a significant year-over-year increase of 133.33% [1] Revenue and Growth Factors - Gross transaction volume (GTV) rose by 19% year over year to $22.9 million in the second quarter of fiscal 2026, driven by new user growth and a 23% increase in usage revenues [3] - The anticipated growth in the upcoming quarter is attributed to the increasing traction of ServiceTitan's AI, Titan Intelligence, and strong demand for professional products [4][8] - Rising automation needs among ServiceTitan's customers are expected to further contribute to top-line growth [4] Earnings Expectations - According to the Zacks model, TTAN currently has an Earnings ESP of 0.00% and a Zacks Rank of 3 (Hold), indicating that the odds of an earnings beat are not favorable at this time [5]

Core Financial Performance - CoreWeave reported a 134% increase in revenue to $1.3 billion, driven by strong demand for AI infrastructure [1] - The company's GAAP loss improved to $0.22 per diluted share, compared to $1.82 per diluted share in the previous year [1] - Cash from operations more than doubled to $1.7 billion [1] Market Position and Recognition - SemiAnalysis recognized CoreWeave as a technology leader in AI services, scoring its platform above competitors like Amazon Web Services and Microsoft Azure [2] - CoreWeave is categorized as a neocloud, providing AI-specific cloud services with superior performance compared to traditional cloud providers [3] IPO and Stock Performance - CoreWeave completed its IPO on March 28, 2025, and the stock has advanced 93% since then, with a median target price of $130 per share indicating a 68% upside from its current price of $77 [4] - The current price-to-sales (P/S) multiple for CoreWeave is 7.5, significantly lower than the average of 13 times sales since its IPO, suggesting it is undervalued [7] Future Growth Potential - Earnings for CoreWeave are forecasted to increase at 92% annually through 2027, making the current P/S multiple reasonable for long-term investors [7] - Despite a recent reduction in full-year revenue guidance due to a partner's delay in a data center build, the overall contract value remains intact, indicating future revenue recognition [6]