Financial Performance - Total revenue for the three months ended October 31, 2025, was $249,163,000, representing a 25% increase from $199,275,000 in the same period of 2024[22] - Gross profit for the three months ended October 31, 2025, was $176,340,000, compared to $129,945,000 for the same period in 2024, indicating a 36% increase[22] - Net loss attributable to common stockholders for the three months ended October 31, 2025, was $39,527,000, an improvement from a net loss of $61,112,000 in the same period of 2024[22] - Operating expenses for the three months ended October 31, 2025, totaled $218,566,000, up from $173,993,000 in the same period of 2024, marking a 26% increase[22] - The company reported a weighted-average share count of 93,273,982 for the three months ended October 31, 2025, compared to 35,094,547 for the same period in 2024[22] - Subscription revenue for the three months ended October 31, 2025, was $182.8 million, up 26% from $145.3 million in 2024[57] - For the three months ended October 31, 2025, total revenue was $249.2 million, a 25% increase from $199.3 million in the same period of 2024[150] - Platform revenue increased by $48.4 million, or 25%, driven by a $37.5 million increase in subscription revenue and a $10.9 million increase in usage-based products[151] Cash and Assets - Cash and cash equivalents increased to $493,238,000 as of October 31, 2025, up from $441,802,000 as of January 31, 2025[20] - Total assets as of October 31, 2025, were $1,816,571,000, compared to $1,768,648,000 as of January 31, 2025, reflecting a growth of 2.7%[20] - The total cash, cash equivalents, and restricted cash at the end of the period was $493.865 million, up from $135.086 million at the end of the same period in 2024[33] - As of October 31, 2025, the fair value of the Company's money market funds was $475.2 million, an increase from $427.8 million as of January 31, 2025[60] - The balance of common stock as of October 31, 2025, was $1.504 billion, an increase from $1.454 billion as of January 31, 2025[28] Expenses and Costs - General and administrative expenses rose by $21.5 million, or 53%, primarily due to a $19.7 million increase in personnel-related costs, including $17.9 million in stock-based compensation[159] - Research and development expenses increased by $12.6 million, or 19%, driven by a $10.4 million rise in personnel-related costs and a $2.0 million increase in infrastructure and server costs[157] - Sales and marketing expenses increased by $10.5 million, or 15%, driven by higher personnel-related costs and a shift in customer success roles to sales and marketing[156] - Total cost of revenue for the three months ended October 31, 2025, was $72.8 million, a 5% increase from $69.3 million in the same period of 2024[154] - Total debt as of October 31, 2025, was $104.6 million, consisting of a Term Loan of $106.2 million net of unamortized debt issuance costs[193] Stock and Equity - The company reported stock-based compensation expense of $142.716 million for the nine months ended October 31, 2025, compared to $69.050 million in the prior year, indicating a 106.5% increase[31] - Total stock-based compensation expense for the three months ended October 31, 2025, was $49,660 thousand, compared to $25,426 thousand in the same period of 2024, reflecting a significant increase[101] - The company had 751,305 stock options outstanding with a weighted average exercise price of $13.59 and a remaining contractual life of 5.23 years[103] - The company recognized stock-based compensation expense of $0.3 million and $1.2 million for stock options in the three and nine months ended October 31, 2025, respectively[104] Acquisitions and Investments - The company acquired Conduit Tech, Inc. for a total purchase consideration of $19.8 million, net of cash acquired of $6.3 million, in October 2025[75] - The acquisition of Convex Labs Inc. in April 2024 had a purchase price of $25.8 million, consisting of $23.5 million in stock and $2.3 million in cash[79] - The company incurred $19.781 million in cash outflows for business acquisitions during the nine months ended October 31, 2025[31] Future Outlook and Strategy - The company plans to continue investing significantly across all aspects of its business to increase GTV, focusing on serving additional customers in existing trades and markets[124] - The company aims to expand into new trade verticals, having started with plumbing and now serving multiple trades, which unlocks new markets for future customer growth[126] - The company expects its cost of platform revenue to increase in absolute dollars as the adoption and usage of its platform and product offerings increase[141] - The company expects sales and marketing expenses to increase as it invests to attract new customers and retain existing ones, with a focus on expanding its customer success team[144] Risks and Challenges - Risks and uncertainties could adversely affect the company's business, financial condition, and results of operations, potentially impacting stock price[217] - Inflation has not materially affected the company's financial condition, but rising personnel-related costs could pose future challenges[209] - A 100 basis point increase in floating interest rates would increase annual interest expense by approximately $1.1 million[207] Compliance and Controls - There were no material changes in internal control over financial reporting during the quarter ended October 31, 2025[212] - The company believes its disclosure controls and procedures are effective at a reasonable assurance level[211] - The company has not entered into derivative or hedging transactions for foreign currency but may consider it if exposure increases[208]
ServiceTitan, Inc.(TTAN) - 2026 Q3 - Quarterly Report