Core Points - ServiceTitan will host an investor session at its annual user conference, Pantheon 2025, in Anaheim, CA on September 18, 2025 [1][2] - The event will take place from 8:00 AM to 1:00 PM Pacific Time and will include a live webcast available for twelve months [2] - ServiceTitan is a cloud-based software platform designed to support trades businesses by providing tools for business management and customer experience [3] Company Overview - ServiceTitan (Nasdaq: TTAN) offers an integrated SaaS platform tailored for the trades industry, which has been historically underserved by technology [3] - The platform enables contractors to manage their operations effectively and enhance customer service [3]

Core Insights - The pest control industry is facing rising material and equipment costs, with 89% of businesses reporting challenges that impact profitability, yet there is cautious optimism about market conditions [1][3] - Technology adoption is seen as essential for improving efficiency and profitability, with a shift towards digital tools and AI becoming increasingly important [2][6][7] Group 1: Economic Challenges - 35% of pest control businesses view a potential recession as a significant threat, a 15% increase from the previous year, but 35% still expect market improvement [3] - Concerns about material costs and maintaining profitable margins are the top risks, with an 18% increase in the number of businesses prioritizing margin maintenance compared to 2024 [3] - 44% of companies reported decreased lead times, indicating potential supply chain improvements despite economic uncertainty [3] Group 2: Workforce and Customer Experience - Retaining employees and enhancing customer experience are prioritized as key differentiators in a volatile market, with growing revenue and customer retention as top business goals [4][5] - 89% of companies plan to increase wages for technicians, reflecting a commitment to competitive compensation to improve staff retention and customer satisfaction [5] Group 3: Technology Adoption - Most pest control businesses utilize software for essential operations like accounting and payroll, but only 20% plan to invest in new technology this year [6] - The focus is on all-in-one business management solutions, with 66% prioritizing product features and integrations as key decision factors [6] - Despite low current investment in AI, leaders believe it will significantly impact marketing, field operations, and sales in the coming years [7]

Core Insights - ServiceTitan has partnered with Pine Services Group to create an integrated ecosystem of field service management (FSM), accounting, and ERP solutions aimed at empowering enterprise-level companies [1][2][3] Company Overview - ServiceTitan is a cloud-based software platform designed to support trades businesses by providing tools for business management, back office operations, and customer experience enhancement [5] - Pine Services Group is a holding company focused on preserving the legacy and growth of elite ERP service partners, supporting over 10,000 businesses with a portfolio of more than 12 leading companies and over 1,000 employees [2][6] Partnership Objectives - The partnership aims to leverage ServiceTitan's technology suite to streamline operations, boost profitability, and support enterprise-level growth for commercial and construction businesses [3][6] - ServiceTitan will become a preferred FSM solution within Pine's ecosystem, enhancing its market reach and solidifying its commitment to the commercial and construction sectors [6] Market Impact - The collaboration is expected to expand market reach for both companies, with Pine extending its accounting and IT services to ServiceTitan's residential customers [6] - The partnership is positioned to cater to the needs of enterprise-level clients, providing advanced capabilities and support for complex operations [6]

Core Insights - ServiceTitan has announced a partnership with Associated Builders and Contractors (ABC), enhancing its commitment to providing technology solutions for specialty contractors in the construction industry [1][2][3] - The partnership allows ABC members to access ServiceTitan's software platform, which includes tools for scheduling, billing, and real-time tracking, along with a member-exclusive benefit of three complimentary months of subscription [2][3] - ServiceTitan aims to drive innovation and operational excellence in the construction sector, which has historically been underserved by technology [2][5] Company Overview - ServiceTitan is a cloud-based software platform designed to empower trades businesses by providing an integrated solution for managing operations and enhancing customer experience [6] - The platform combines project management tools with service functionality, enabling specialty contractors to run their entire business on a single platform [4][6] - ServiceTitan's addition to ABC's Tech Marketplace solidifies its leadership position in construction technology, setting new standards for productivity and operational efficiency [5] Industry Context - ABC, a national trade association with 23,000 members, focuses on advancing industry trends and fostering innovation through its Tech Marketplace [3] - The collaboration between ServiceTitan and ABC aims to equip contractors with cutting-edge digital tools to improve safety, profitability, and efficiency in their operations [3] - This partnership reflects a broader trend in the construction industry towards increased technology adoption to enhance productivity and deliver superior outcomes [5]

Group 1 - ServiceTitan's new SuiteApp has achieved 'Built for NetSuite' status, enhancing workflows and financial visibility for enterprise, commercial service, and construction contractors [1][2] - The SuiteApp integrates ServiceTitan's field service platform with NetSuite's unified business suite, improving financial reporting speed and accuracy, and optimizing cash flow [2][3] - The Built for NetSuite program ensures that applications meet NetSuite standards, providing customers with confidence in the SuiteApps [3] Group 2 - Oracle NetSuite's SuiteCloud platform offers cloud-based products and development tools, enabling businesses to run operations in the cloud and developers to create applications [5] - The SuiteCloud Developer Network (SDN) supports independent software vendors in building apps for SuiteCloud, with a marketplace for NetSuite customers to find specific applications [6] Group 3 - ServiceTitan provides a comprehensive software platform for trades businesses, equipping contractors with tools to manage operations and enhance customer experience [7]

Core Insights - ServiceTitan has announced a strategic collaboration with ABC Supply Co., Inc. to enhance procurement and estimating processes for roofing contractors [1][2] - The integration aims to provide accurate product catalogs, pricing, and order status directly within ServiceTitan's platform, improving operational efficiency and customer satisfaction [2][3] Company Overview - ServiceTitan is a cloud-based software platform designed to support trades businesses, offering tools for business management and customer experience enhancement [5] - ABC Supply Co., Inc. is the largest wholesale distributor of roofing and other building products in North America, focusing on serving professional contractors since its founding in 1982 [7] Integration Features - The integration will allow for branch-specific, up-to-date pricing pulled nightly, ensuring contractors have the most current costs for accurate estimates [5] - Location-aware estimates will automatically apply branch-level prices based on job location, maintaining profitability across different markets [5] - Real-time validation at purchase will check current pricing and availability, reducing order errors and material delays [5] - The seamless estimate-to-order flow will enable teams to convert estimates into electronic purchase orders instantly [5] - Contractors will have access to ABC's full catalog with product names and imagery, enhancing proposal accuracy and professionalism [5] Industry Context - Material prices are a significant concern for contractors, with 64% indicating that rising costs may hinder growth and profitability [3] - Supply chain disruptions in the roofing industry are making it increasingly challenging for contractors to source materials at the right time and price [3]

PART I [Financial Statements (Unaudited)](index=9&type=section&id=Item%201.%20Financial%20Statements%20(Unaudited)) ServiceTitan reported $215.7 million revenue, a 27% increase, with a net loss of $46.4 million and $14.6 million net cash used in operations for the quarter [Condensed Consolidated Balance Sheets](index=9&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) Condensed Consolidated Balance Sheet Highlights (in thousands) | Account | April 30, 2025 | January 31, 2025 | | :--- | :--- | :--- | | **Assets** | | | | Cash and cash equivalents | $420,265 | $441,802 | | Total current assets | $552,973 | $572,766 | | Goodwill | $845,836 | $845,836 | | **Total assets** | **$1,727,396** | **$1,768,648** | | **Liabilities & Equity** | | | | Total current liabilities | $114,834 | $153,116 | | Total liabilities | $273,467 | $314,064 | | Total stockholders' equity | $1,453,929 | $1,454,584 | | **Total liabilities and stockholders' equity** | **$1,727,396** | **$1,768,648** | [Condensed Consolidated Statements of Operations](index=10&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) Quarterly Statement of Operations (in thousands, except per share data) | Metric | Q1 FY2026 (ended Apr 30, 2025) | Q1 FY2025 (ended Apr 30, 2024) | Change (%) | | :--- | :--- | :--- | :--- | | **Total Revenue** | **$215,692** | **$170,328** | **26.6%** | | Platform Revenue | $207,982 | $163,225 | 27.4% | | Gross Profit | $148,396 | $105,980 | 40.0% | | Loss from Operations | $(49,536) | $(53,428) | (7.3%) | | **Net Loss** | **$(46,364)** | **$(56,039)** | **(17.3%)** | | Net Loss Per Share (basic and diluted) | $(0.51) | $(2.02) | (74.8%) | [Condensed Consolidated Statements of Cash Flows](index=12&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Quarterly Cash Flow Summary (in thousands) | Cash Flow Activity | Three Months Ended April 30, 2025 | Three Months Ended April 30, 2024 | | :--- | :--- | :--- | | Net cash used in operating activities | $(14,570) | $(19,224) | | Net cash used in investing activities | $(7,764) | $(6,597) | | Net cash provided by (used in) financing activities | $380 | $(5,108) | | **Net decrease in cash, cash equivalents, and restricted cash** | **$(21,954)** | **$(30,929)** | [Notes to Financial Statements](index=14&type=section&id=Notes%20to%20Unaudited%20Condensed%20Consolidated%20Financial%20Statements) Key notes detail the December 2024 IPO, revenue recognition, debt arrangements, and stock-based compensation - In December 2024, the company completed its IPO, receiving net proceeds of **$674.1 million**. A portion of the proceeds was used to redeem all outstanding non-convertible preferred stock[35](index=35&type=chunk) - As of April 30, 2025, the company had remaining performance obligations of **$415.9 million**, with approximately **50%** expected to be recognized as revenue in the next 12 months[52](index=52&type=chunk) - Total stock-based compensation expense for the three months ended April 30, 2025 was **$43.7 million**, a significant increase from **$19.9 million** in the prior-year period, including **$13.1 million** for performance-based RSUs granted to the Co-Founders[92](index=92&type=chunk)[105](index=105&type=chunk) - As of April 30, 2025, the company had a Term Loan with an outstanding principal balance of **$106.8 million** and an undrawn Revolver Facility of **$140.0 million**[79](index=79&type=chunk)[82](index=82&type=chunk)[183](index=183&type=chunk) [Management's Discussion and Analysis (MD&A)](index=31&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management attributes 27% revenue growth to subscription and FinTech adoption, with GTV at $17.7 billion and non-GAAP operating income of $16.2 million - The company's platform processed **$17.7 billion** of Gross Transaction Volume (GTV) in the three months ended April 30, 2025, up from **$14.5 billion** in the prior year period[115](index=115&type=chunk) - Net dollar retention rate was **over 110%** for the three months ended April 30, 2025, indicating strong customer retention and expansion[122](index=122&type=chunk) Revenue and Gross Margin Analysis (in thousands) | Metric | Q1 FY2026 (ended Apr 30, 2025) | Q1 FY2025 (ended Apr 30, 2024) | Change ($) | Change (%) | | :--- | :--- | :--- | :--- | :--- | | **Total Revenue** | **$215,692** | **$170,328** | **$45,364** | **27%** | | Platform Revenue | $207,982 | $163,225 | $44,757 | 27% | | Professional Services Revenue | $7,710 | $7,103 | $607 | 9% | | **Total Gross Margin** | **68.8%** | **62.2%** | - | - | GAAP vs. Non-GAAP Operating Income (in thousands) | Metric | Q1 FY2026 (ended Apr 30, 2025) | Q1 FY2025 (ended Apr 30, 2024) | | :--- | :--- | :--- | | GAAP loss from operations | $(49,536) | $(53,428) | | Non-GAAP income from operations | $16,209 | $3,312 | [Market Risk Disclosures](index=51&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company's primary market risks are interest rate risk on floating-rate debt, with minor foreign currency and inflation exposures - The company is exposed to interest rate risk on its floating-rate debt; a **100 basis point** increase in rates would increase annual interest expense by approximately **$1.1 million**[196](index=196&type=chunk) - Foreign currency risk is considered **minimal** as the vast majority of revenue is denominated in U.S. dollars, and the company does not currently use derivative hedging instruments[197](index=197&type=chunk) [Controls and Procedures](index=51&type=section&id=Item%204.%20Controls%20and%20Procedures) Management confirmed effective disclosure controls as of April 30, 2025, with no material changes to internal controls and prior weaknesses remediated - Management concluded that as of April 30, 2025, the company's disclosure controls and procedures were **effective**[200](index=200&type=chunk) - There were **no changes** in internal control over financial reporting during the quarter that have materially affected, or are reasonably likely to materially affect, internal controls[201](index=201&type=chunk) - Material weaknesses in internal control over financial reporting, first identified in fiscal 2019, were **fully remediated** as of January 31, 2024[17](index=17&type=chunk)[343](index=343&type=chunk) PART II [Risk Factors](index=53&type=section&id=Item%201A.%20Risk%20Factors) The company faces risks from profitability, growth, competition, industry reliance, multi-class stock, cybersecurity, and complex regulations - **Business & Financial Risks:** The company has a history of net losses and may not achieve or sustain profitability, with growth dependent on effective expansion, competition, and navigating economic conditions affecting the trades industry[212](index=212&type=chunk)[214](index=214&type=chunk)[244](index=244&type=chunk) - **Governance Risk:** The multi-class stock structure concentrates approximately **63%** of voting power with the Co-Founders, limiting other stockholders' influence on major corporate decisions[364](index=364&type=chunk) - **Technology & Cybersecurity Risks:** The business relies on third-party data centers (primarily Microsoft Azure) and is exposed to cybersecurity breaches, with AI and open-source software introducing additional operational, reputational, and legal risks[276](index=276&type=chunk)[287](index=287&type=chunk)[315](index=315&type=chunk) - **Regulatory & Legal Risks:** The company is subject to a complex web of regulations, including data privacy laws (e.g., CCPA), marketing laws (e.g., TCPA), and anti-corruption laws, where non-compliance could result in significant penalties and reputational harm[298](index=298&type=chunk)[306](index=306&type=chunk)[337](index=337&type=chunk) [Use of Proceeds and Equity Sales](index=110&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) The company received net proceeds of $674.1 million from its December 2024 IPO, with no material change in the planned use of proceeds - The company received net proceeds of **$674.1 million** from its IPO in December 2024[392](index=392&type=chunk) [Other Information](index=110&type=section&id=Item%205.%20Other%20Information) CEO, President, and CFO adopted Rule 10b5-1 trading plans in April 2025 for potential stock sales through April 2026 - On April 15, 2025, the CEO, President, and CFO each adopted **Rule 10b5-1** trading arrangements for the sale of company stock[396](index=396&type=chunk)[397](index=397&type=chunk)[398](index=398&type=chunk)

Group 1 - The stock market is perceived as exceedingly expensive, leading to investor dissatisfaction during the Q1 earnings season, resulting in stock price declines even after successful earnings reports [1] - Investors are reacting negatively despite companies beating earnings expectations and raising guidance, indicating a challenging environment for stock performance [1] - Gary Alexander has extensive experience in technology sectors, both on Wall Street and in Silicon Valley, and has been contributing insights on industry trends since 2017 [1]

Group 1 - ServiceTitan reported adjusted earnings of 18 cents per share, exceeding market estimates of 12 cents per share [1] - Quarterly sales reached $215.69 million, surpassing expectations of $208.69 million [1] - The company raised its FY2026 sales guidance from a range of $895 million-$905 million to $910 million-$920 million [1] Group 2 - Co-Founder and President Vahe Kuzoyan emphasized the company's focus on delivering ROI to customers and building transformative outcomes [2] - Following the earnings announcement, ServiceTitan shares fell by 7.7% to $105.68 [2] - Analysts adjusted their price targets for ServiceTitan, with Morgan Stanley raising it from $107 to $109, Loop Capital from $90 to $100, and Needham maintaining a $140 target [7]

Financial Data and Key Metrics Changes - Q1 gross transaction volume (GTV) was $17.7 billion, up 22% year over year [23] - Q1 total revenue was $215.7 million, up 27% year over year, driven by subscription revenue of $162.7 million, which grew 29% year over year [24] - Q1 platform gross margin was 79.7%, an improvement of over 300 basis points year over year [24] - Q1 operating income was $16.2 million, leading to a record operating margin of 7.5%, an improvement of 560 basis points year over year [25] - Q1 free cash flow was negative $22.3 million, an improvement from negative $24.6 million in the prior year [26] Business Line Data and Key Metrics Changes - Subscription revenue growth was 29% year over year, while usage revenue grew 22% year over year [24] - Professional service revenue for Q1 was $7.7 million [24] - Net dollar retention was greater than 110% for the quarter [24] Market Data and Key Metrics Changes - The company reported healthy growth from both residential and commercial customers [23] - The focus on enterprise customers is increasingly driving growth, with significant interest in standardizing operations around AI and automation [16][17] Company Strategy and Development Direction - The company aims to deliver real ROI to customers, which drives subscription and usage revenue growth [6] - Four primary areas of focus for FY 2026 include expanding enterprise capabilities, pro product adoption, deeper engagement in commercial, and growth in roofing [15] - The company is leveraging partnerships and technology to enhance its offerings, particularly in the commercial and roofing sectors [21][66] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to navigate economic uncertainty and highlighted the resilience of customers [32] - The company is managing for long-term growth and margin expansion, with a target of achieving a 25% non-GAAP operating margin [27] - Management is cautious about external factors such as tariffs and their potential impact on customer growth and supply chain inflation [32] Other Important Information - The company is focused on delivering transformative customer outcomes and building trade-specific workflows [11][14] - The introduction of new AI-native products is expected to enhance operational efficiency for customers [18] Q&A Session Summary Question: Impact of tariffs on the business - Management acknowledged potential positive and negative impacts of tariffs, emphasizing customer resilience and the ability to pass through rising costs [32] Question: Stacking S curve strategy for growth - The company is focused on enterprise, commercial, pro, and roofing as primary areas of attention for growth [35] Question: Seasonal perspective on GTV and pro product attach - GTV is expected to be stronger in Q2 due to seasonal factors, with pro products being a significant growth driver [40][43] Question: Update on commercial bookings and product capabilities - Commercial bookings and go-lives are performing well, with ongoing development of a dedicated commercial CRM and project management capabilities [46][48] Question: Opportunities in new trades - The company is open to exploring new trades but focuses primarily on established priorities to ensure resource allocation [52] Question: Average ticket sizes and macro impacts - Average ticket sizes remained stable, with Q2 guidance factoring in weather variability and macroeconomic conditions [56] Question: Visibility from customer go-lives - Customer go-lives provide high visibility into subscription revenue, with a focus on delivering ROI to encourage upselling of pro products [76][78]