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]

Financial Data and Key Metrics Changes - Q1 gross transaction volume (GTV) was $17.7 billion, up 22% year over year [20] - 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 [21] - Q1 platform gross margin was 79.7%, an improvement of over 300 basis points year over year [21] - 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 [22] - Q1 free cash flow was negative $22.3 million, an improvement from negative $24.6 million in the prior year [23] Business Line Data and Key Metrics Changes - Subscription revenue growth was 29% year over year, while usage revenue grew 22% year over year [21] - Professional service revenue for Q1 was $7.7 million [21] - Net dollar retention was greater than 110% for the quarter [21] Market Data and Key Metrics Changes - The company reported healthy growth from both residential and commercial customers [20] - The focus on enterprise customers is increasingly driving growth, with significant interest in standardizing operations around AI and automation [14] Company Strategy and Development Direction - The company aims to expand enterprise capabilities, increase pro product adoption, deepen commercial focus, and grow in roofing [12] - The strategy includes building trade-specific workflows to attract new industries to the platform [9] - The company is focused on becoming the operating system for the trades, with a long-term target of achieving a 25% non-GAAP operating margin [24] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to navigate economic uncertainty and emphasized the resilience of customers [30] - The company is managing for long-term growth rather than short-term gains, with a focus on durable compounding growth over many years [24] - Management acknowledged the potential impact of tariffs and supply chain inflation but emphasized the importance of prudent forecasting [30] Other Important Information - The company highlighted successful customer stories that demonstrate the value of its platform, including significant revenue growth for customers using its services [7][10] - The company is actively pursuing partnerships and consolidations in the commercial space, which is seen as a key growth area [65] Q&A Session Summary Question: Impact of tariffs on the business - Management noted that while tariffs could lead to supply chain inflation, customers have historically managed to pass through rising costs [30] Question: Stacking S curve strategy - The company is focused on enterprise, commercial, pro products, and roofing as primary areas of attention for growth [32] Question: Seasonal perspective on GTV - GTV is expected to be stronger in Q2 due to seasonal factors, particularly in trades like HVAC and landscaping [37] Question: Commercial bookings and product roadmap - Commercial bookings are performing well, with significant go-lives and a focus on enhancing product capabilities for construction use cases [44] Question: Average ticket sizes and macro impacts - Average ticket sizes remained stable, with Q2 guidance factoring in weather variability and macroeconomic conditions [55] 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 [78]

Investor Presentation Summer 2025 | Q1'FY26 Forward-Looking Statements & Other Disclaimers This presentation contains forward-looking statements within the meaning of within the meaning of the Securities Act of 1933, as amended, the Securities Exchange Act of 1934, as amended, and the Private Securities Litigation Reform Act of 1995. Forward-looking statements can be identified by words such as "anticipate," "believe," estimate," "expect," "goal," "intend," "likely," "may," "plan," "project," "seek," "shoul ...

Core Insights - ServiceTitan has launched an integration with EagleView, enhancing the estimating and proposal capabilities for roofing and exterior contractors, which aims to streamline workflows and improve close rates [1][2][3] Company Overview - ServiceTitan is a cloud-based software platform designed to empower trades businesses, providing tools for business management and customer experience enhancement [5] - EagleView specializes in geospatial technology, offering a vast imagery library and property intelligence that covers 94% of the U.S. population, with over 300 patents [6] Integration Benefits - The integration allows contractors to access EagleView's precise aerial measurements directly within ServiceTitan, facilitating the creation of competitive bids and reducing costly errors [1][2] - Contractors can generate estimates four times faster using EagleView data, with a measurement accuracy of 98.77% compared to independent benchmarks, leading to improved proposal pricing efficiency [3][6] Industry Impact - This collaboration is expected to drive automation and efficiency across the roofing industry, enabling contractors to quote with confidence and scale their operations effectively [3]

Financial Performance - Gross transaction volume (GTV) for Q1 2026 reached $17.7 billion, a year-over-year growth of 22% compared to $14.5 billion in Q1 2025[3] - Total revenue for Q1 2026 was $215.7 million, reflecting a 27% increase from $170.3 million in Q1 2025[3] - Non-GAAP income from operations for Q1 2026 was $16.2 million, with a non-GAAP operating margin of 7.5%, up from 1.9% in Q1 2025[3] - Platform revenue for Q1 2026 was $208 million, showing a consistent year-over-year growth of 27%[3] - The company reported a GAAP loss from operations of $49.5 million in Q1 2026, an improvement from a loss of $53.4 million in Q1 2025[3] - Non-GAAP income from operations for Q2 2026 is projected to be between $17 million and $18 million, and for the full fiscal year 2026 between $54 million and $59 million[4] - The company expects total revenue for Q2 2026 to be between $228 million and $230 million, and for the full fiscal year 2026 to be between $910 million and $920 million[4] Cash Flow and Expenses - Net cash used in operating activities decreased to $14.6 million in Q1 2026 from $19.2 million in Q1 2025[3] - Cash used in operating activities for Q2 2025 was $14,570,000, an improvement from $19,224,000 in Q2 2024[18] - Net cash used in investing activities was $7,764,000 in Q2 2025, compared to $6,597,000 in Q2 2024[18] - The company reported a net decrease in cash, cash equivalents, and restricted cash of $21,954,000 for the period, down from $30,929,000 in the previous year[18] - The ending cash balance for the period was $420,892,000, compared to $117,934,000 at the end of the same period in 2024[18] Profitability Metrics - Net dollar retention rate remains above 110%, indicating strong customer retention and expansion[3] - Non-GAAP net income reached $17,897,000 in Q2 2025, up from $212,000 in Q2 2024, marking a substantial increase in profitability[32] - Non-GAAP net income per share (diluted) was $0.18 for Q2 2025, while the GAAP net loss per share (diluted) was $(0.51)[33] - Free cash flow for Q2 2025 was $(22,334,000), slightly improved from $(24,637,000) in Q2 2024, reflecting better cash management[34] Operating Expenses - Non-GAAP sales and marketing expense was $56,375,000 in Q2 2025, up from $44,635,000 in Q2 2024, indicating a 26.4% increase[27] - Non-GAAP research and development expense increased to $55,198,000 in Q2 2025 from $46,386,000 in Q2 2024, a rise of 19.0%[28] - Non-GAAP general and administrative expense was $30,974,000 in Q2 2025, compared to $24,406,000 in Q2 2024, marking a 27.0% increase[29] - Stock-based compensation expense increased to $33,260,000 in Q2 2025 from $20,572,000 in Q2 2024, indicating higher costs associated with employee compensation[32] Operational Efficiency - Non-GAAP operating margin improved to 7.5% in Q2 2025, compared to 1.9% in Q2 2024, indicating a positive trend in operational efficiency[31] - GAAP operating margin improved to (23.0)% in Q2 2025 from (31.4)% in Q2 2024, reflecting enhanced operational performance[31] - The loss on operating lease assets decreased to $8,032,000 in Q2 2025 from $20,081,000 in Q2 2024, indicating better asset management[30]

Core Insights - ServiceTitan reported strong financial results for the fiscal first quarter of 2026, with significant year-over-year growth in gross transaction volume and total revenue [2][3] - The company's focus on delivering ROI to customers is highlighted as a key competitive advantage, with a strong start in its four primary areas of focus for the year [1][2] Financial Highlights - Gross transaction volume (GTV) increased to $17.7 billion, representing a 22% year-over-year growth compared to $14.5 billion in the previous year [2] - Total revenue reached $215.7 million, a 27% increase from $170.3 million in the same quarter of the previous year [2] - Platform revenue also grew by 27% year-over-year, amounting to $208.0 million [2] - Non-GAAP income from operations was reported at $16.2 million, compared to $3.3 million in the same quarter last year, resulting in a non-GAAP operating margin of 7.5% [2][31] - Net cash used in operating activities decreased to $14.6 million from $19.2 million year-over-year [2][36] Operational Outlook - For the second quarter of fiscal 2026, ServiceTitan expects total revenue between $228 million and $230 million, and non-GAAP income from operations between $17 million and $18 million [3] - The full fiscal year 2026 revenue outlook is projected to be between $910 million and $920 million, with non-GAAP income from operations expected to be between $54 million and $59 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 [6] - The company aims to transform the trades industry, which has historically been underserved by technology, by equipping contractors with necessary technological solutions [6]

Core Viewpoint - ServiceTitan, Inc. will report its financial results for the fiscal first quarter ended April 30, 2025, on June 5, 2025, and will provide an outlook for fiscal year 2026 [1]. Group 1: Financial Reporting - The financial results will be announced after market close on June 5, 2025 [1]. - A conference call will be held at 2:00 p.m. Pacific Time (5:00 p.m. Eastern Time) on the same day to discuss the results [2]. Group 2: Company Overview - ServiceTitan is a software platform that supports trades businesses with a cloud-based, end-to-end solution [3]. - The platform provides contractors with tools to manage their business operations and enhance customer experience [3]. - ServiceTitan aims to equip tradespeople with technology in an industry that has been historically underserved [3].