Company Performance - BigBear.ai's revenue declined by 20% year over year in Q3, with a gross margin contraction of 3.5 percentage points to 22.4% [5] - BigBear.ai has been unprofitable for the past four years and has missed analysts' earnings per share estimates in three out of the last four quarters [5] - ServiceTitan reported a 25% revenue growth in Q3, achieving an annual revenue run rate of nearly $1 billion [6][7] - ServiceTitan's adjusted operating margin improved to 8.6%, up from 0.8% in the prior-year period [6] Market Sentiment - Both BigBear.ai and ServiceTitan have experienced significant stock declines, with BigBear.ai down 21.4% and ServiceTitan down 23.6% over the past six months, despite the S&P 500 gaining 9.8% [2][3] - Investors are pessimistic about ServiceTitan's outlook due to concerns about the impact of AI on SaaS companies, despite its strong sales growth [3] Investment Outlook - ServiceTitan is viewed as a promising investment opportunity compared to BigBear.ai, which is struggling [4] - ServiceTitan has consistently beaten analysts' earnings expectations for the past four quarters, indicating potential undervaluation [7] - The likelihood of AI disrupting ServiceTitan's business model appears low, suggesting stability in its growth trajectory [8]