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 Data and Key Metrics Changes - In Q2 FY2026, total revenue reached $242.1 million, reflecting a 25% year-over-year growth [18] - Subscription revenue grew by 27% year-over-year to $174.8 million, driven by faster growth from new customers [19] - Gross transaction volume (GTV) was $22.9 billion, representing a 19% year-over-year increase [18] - Platform gross margin improved to 80.7%, an increase of 280 basis points year-over-year [19] - Operating income was $29.2 million, resulting in a record operating margin of 12.1%, an improvement of 510 basis points year-over-year [20] - Free cash flow for Q2 was $34.3 million, up from $18.7 million in the prior year [20] Business Line Data and Key Metrics Changes - The company reported strong performance across its pro products, which are the fastest-growing area of the business [13] - Professional services revenue for Q2 was $9.4 million, contributing to overall revenue growth [19] - The introduction of AI capabilities has allowed customers to automate workflows, leading to increased efficiency and revenue growth [10][14] Market Data and Key Metrics Changes - Commercial customers and non-HVAC residential trades led the overperformance in GTV growth [18] - Residential HVAC growth was slower compared to previous periods due to challenging year-over-year comparisons [19][75] - The partnership with Roto-Rooter is expected to enhance the company's presence in both residential and commercial markets [12][13] Company Strategy and Development Direction - The company aims to become the operating system for the trades, focusing on delivering automation and AI solutions to enhance customer operations [11][12] - There is a strong emphasis on expanding capabilities in the commercial sector, particularly in construction project management [15][39] - The company is committed to improving product offerings and customer service to maintain competitive advantages [35] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to deliver strong ROI to customers, which in turn drives growth [4][5] - The management team highlighted the importance of automation and AI in transforming the trades industry [10][14] - Future growth is expected to be driven by continued investment in R&D and capital deployment towards high ROI opportunities [22][48] Other Important Information - The company has posted an updated investor presentation and earnings release on its website [3] - The management team is focused on executing their strategy with a long-term view of sustainable growth and margin improvement [22] Q&A Session Summary Question: What was the business objective for Roto-Rooter in choosing ServiceTitan? - Management highlighted that Roto-Rooter seeks revenue growth through lead generation, lower customer acquisition costs, and back-office automation [25][26] Question: What percentage of the customer base is hybrid, spanning across residential and commercial? - Management noted that most customers have both residential and commercial operations, which provides a competitive advantage [32][33] Question: Is there anything underperforming that the company is working on? - Management acknowledged the desire for continuous improvement across all areas, including product delivery and service levels [35] Question: How long has the company been investing in the commercial side? - The company has been investing in the commercial side for about three years, focusing on construction capabilities [39] Question: How is the company leveraging AI for efficiency? - Management indicated that AI is being used to improve customer experience and operational efficiency, with ongoing developments in this area [79] Question: What is the expected impact of Pro products on gross margins? - The impact on gross margins will depend on the specific Pro products, with some expected to contribute positively [80]

Financial Data and Key Metrics Changes - Total revenue for fiscal year 2025 reached $772 million, representing a 26% year-over-year growth, with subscription revenue growing by 28% year-over-year [8][19] - Q4 total revenue was $209.3 million, up 29% year-over-year, driven by a gross transaction volume (GTV) of $17 billion, which also grew by 26% year-over-year [19][20] - Q4 operating income was $6.9 million, leading to an operating margin of 3.3%, an improvement of 200 basis points year-over-year [22] - Free cash flow for Q4 was $10.8 million, a significant increase from negative $2.2 million in the prior year [22] Business Line Data and Key Metrics Changes - Subscription revenue in Q4 was $156.7 million, up 31% year-over-year, while usage revenue was $43.4 million, up 26% year-over-year [20] - Professional services revenue in Q4 was $9.2 million, contributing to the overall revenue growth [21] - Net dollar retention exceeded 110% for the quarter, indicating strong customer expansion [21] Market Data and Key Metrics Changes - The company serves a large and durable market, with North American customers spending approximately $1.5 trillion annually on trades services [9] - The company exited fiscal year 2025 with approximately 9,500 total active customers, an 18% increase year-over-year [22] Company Strategy and Development Direction - The company aims to be synonymous with the trades by expanding its enterprise capabilities, increasing pro product adoption, and deepening its presence in commercial and roofing sectors [13][15] - The focus is on creating value for customers through high ROI solutions, which in turn drives growth for the company [7][12] - The company is committed to becoming the operating system for the trades, leveraging partnerships and technology to enhance customer success [11][90] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's growth trajectory, citing strong performance in existing customer segments and the potential for new product adoption [19][63] - The management acknowledged the impact of macroeconomic conditions but noted that historical performance has shown resilience in job growth despite economic cycles [60] - The company is monitoring external variables closely, including weather patterns and macroeconomic shifts, to inform its guidance and operational strategies [64][97] Other Important Information - The company achieved free cash flow positivity for the first time in fiscal year 2025, marking a significant milestone [8] - The management highlighted the importance of customer success metrics, shifting focus to include expansion as a core KPI starting in fiscal year 2026 [24] Q&A Session Summary Question: What contributed to better linearity of new business in Q4? - Management attributed the unusual linearity to momentum from the Pantheon event and excitement surrounding the IPO, leading to more deals closing earlier in the quarter than usual [29][30] Question: What are the new opportunities available with the new products? - Management indicated that while new products take time to mature, they expect them to be significant growth drivers in fiscal year 2027 and beyond [31] Question: How does the company view its position in heavy construction? - Management clarified that they focus on specialty trade subcontractors rather than general contractors, seeing opportunities for coexistence rather than direct competition with firms like Procore [44][45] Question: How does the company plan to drive expansion through customer success managers (CSMs)? - The strategy involves CSMs helping customers better utilize products, which is expected to lead to revenue growth and margin improvement [51] Question: How does inflation impact the company's performance? - Management noted that while inflation could affect average ticket sizes, they have not yet observed a significant impact on jobs performed or average ticket [60][78] Question: What is the outlook for free cash flow in fiscal year 2026? - Management indicated that free cash flow should align closely with non-GAAP operating income, with seasonal dynamics considered [71] Question: How does the company view the impact of AI on its products? - Management highlighted that AI is expected to enhance existing pro products and drive monetization opportunities, with current AI products already showing strong customer adoption [100]