LOS ANGELES, Jan. 13, 2025 (GLOBE NEWSWIRE) -- ServiceTitan (NASDAQ: TTAN), the software platform that powers the trades, today announced financial results for the fiscal third quarter ended October 31, 2024.
"Building a generational business that is the operating system for the trades is our life's work,” said Ara Mahdessian, co-founder and CEO. "We recognize that the only thing more exciting than how far we have come, is just how far we have yet to go. Healthy fiscal third quarter business performance is further evidence that our strategy is working.”
"We are pleased to deliver fiscal third quarter financial performance ahead of the midpoint of our flash results,” said Vahe Kuzoyan, co-founder and President. "Our customers are expanding well and we are pleased with strong early adoption of our new Sales Pro and Contact Center Pro products.”
Third Quarter Fiscal 2025 Financial Highlights:
Revenue:
- Total revenue increased 24% year-over-year to $199.3 million.
- Platform revenue increased 26% year-over-year to $191.2 million.
- GAAP loss from operations was ($44.0) million for the third quarter of fiscal 2025, compared to ($36.1) million for the third quarter of fiscal 2024.
- Non-GAAP income from operations was $1.6 million for the third quarter of fiscal 2025, compared to non-GAAP loss from operations of ($4.3) million for the third quarter of fiscal 20241.
- GAAP net loss was ($46.5) million for the third quarter of fiscal 2025, compared to ($39.7) million for the third quarter of fiscal 2024.
- Non-GAAP net loss was ($1.1) million for the third quarter of fiscal 2025, compared to ($7.2) million for the third quarter of fiscal 20241.
- Cash and cash equivalents totaled $133.8 million as of October 31, 2024.
- Net cash generated by operating activities was $15.5 million for the third quarter of fiscal 2025, compared to $0.4 million for the third quarter of fiscal 2024.
- Non-GAAP free cash flow was $10.6 million for the third quarter of fiscal 2025, compared to ($6.2) million for the third quarter of fiscal 20241.
Business and Operational Highlights:
- Net dollar retention was greater than 110% for the third quarter of fiscal 2025.
- Gross Transaction Volume ("GTV”) was $17.8 billion for the third quarter of fiscal 2025, up 20% year-over-year.
For the fourth quarter of fiscal 2025, the Company currently expects:
- Total revenue in the range of $199.0 million to $201.0 million.
- Non-GAAP income from operations in the range of $3.0 million to $4.0 million2.
- Total revenue in the range of $761.6 million to $763.6 million.
- Non-GAAP income from operations in the range of $21.4 million to $22.4 million².
The financial results and business highlights will be discussed on a conference call and webcast scheduled at 2:00 p.m. Pacific Time (5:00 p.m. Eastern Time) on Monday, January 13, 2025. Online registration for this event conference call can be found here. The live webcast of the conference call can be accessed from ServiceTitan's investor relations website at http://investors.servicetitan.com.
Following completion of the events, a webcast replay will also be available at http://investors.servicetitan.com for 12 months.
About ServiceTitan
ServiceTitan is the software platform that powers trades businesses. The Company's cloud-based, end-to-end solution gives contractors the tools they need to run and grow their business, manage their back office, and provide a stellar customer experience. By bringing an integrated SaaS platform to an industry historically underserved by technology, ServiceTitan is equipping tradespeople with the technology they need to keep the world running.
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2 ServiceTitan is not able, at this time, to provide an outlook for GAAP income (loss) from operations or a reconciliation of expected non-GAAP income from operations to GAAP income (loss) from operations for the fourth quarter of fiscal 2025 or for the full fiscal year 2025 because of the difficulty of estimating certain items excluded from non-GAAP income from operations that cannot be reasonably calculated or predicted without unreasonable efforts. For example, charges related to stock-based compensation expense require additional inputs, such as the number and value of awards granted, that are not currently ascertainable.
Forward Looking Statements
This press release contains forward-looking statements 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. All statements other than statements of historical facts contained in this press release may be forward-looking statements. In some cases, you can identify forward-looking statements because they contain words such as "anticipate,” "believe,” "contemplate,” "continue,” "could,” "estimate,” "expect,” "intend,” "may,” "plan,” "potential” "predict,” "project,” "should,” "target,” or "will,” or the negative of these words or other similar terms or expressions that concern ServiceTitan's expectations, strategy, plans or intentions. Forward-looking statements in this release include, but are not limited to, statements regarding ServiceTitan's financial outlook for total revenue and non-GAAP income from operations for the fourth quarter of fiscal year 2025 ending January 31, 2025 and the full fiscal year ending January 31, 2025. ServiceTitan's expectations and beliefs regarding these matters may not materialize, and actual results in future periods are subject to risks and uncertainties that could cause actual results to differ materially from those projected, including those more fully described under the caption "Risk Factors” in our Prospectus dated December 11, 2024, filed with the SEC on December 12, 2024, and elsewhere in documents that ServiceTitan files with the SEC, including ServiceTitan's Quarterly Report on Form 10-Q for the fiscal third quarter ended October 31, 2024, which is being filed with the SEC at or around the date hereof. The forward-looking statements in this release are based on information available to ServiceTitan as of the date hereof, and ServiceTitan undertakes no obligation to update any forward-looking statements, except as required by law.
© 2025 ServiceTitan. All rights reserved. ServiceTitan, the ServiceTitan logo, and all ServiceTitan product and service names mentioned herein are registered trademarks or unregistered trademarks of ServiceTitan, Inc. in the United States and other countries. Other brand names and marks mentioned herein are for identification purposes only and may be the trademarks of their respective holder(s).
| ServiceTitan, Inc. Condensed Consolidated Statements of Operations (in thousands, except share and per share data) (unaudited) | ||||||||||||||||
| Three Months Ended October 31, | Nine Months Ended October 31, | |||||||||||||||
| 2024 | 2023 | 2024 | 2023 | |||||||||||||
| Revenue: | ||||||||||||||||
| Platform | $ | 191,190 | $ | 151,655 | $ | 539,412 | $ | 427,789 | ||||||||
| Professional services and other | 8,085 | 8,429 | 23,185 | 24,788 | ||||||||||||
| Total revenue | 199,275 | 160,084 | 562,597 | 452,577 | ||||||||||||
| Cost of revenue: | ||||||||||||||||
| Platform | 52,204 | 42,036 | 149,197 | 125,939 | ||||||||||||
| Professional services and other | 17,126 | 15,280 | 50,649 | 50,220 | ||||||||||||
| Total cost of revenue | 69,330 | 57,316 | 199,846 | 176,159 | ||||||||||||
| Gross profit | 129,945 | 102,768 | 362,751 | 276,418 | ||||||||||||
| Operating expenses: | ||||||||||||||||
| Sales and marketing | 67,795 | 60,097 | 183,614 | 163,305 | ||||||||||||
| Research and development | 65,935 | 49,094 | 186,997 | 149,114 | ||||||||||||
| General and administrative | 40,263 | 29,723 | 122,226 | 98,772 | ||||||||||||
| Total operating expenses | 173,993 | 138,914 | 492,837 | 411,191 | ||||||||||||
| Loss from operations | (44,048 | ) | (36,146 | ) | (130,086 | ) | (134,773 | ) | ||||||||
| Other expense, net | ||||||||||||||||
| Interest expense | (3,974 | ) | (4,216 | ) | (12,324 | ) | (12,203 | ) | ||||||||
| Interest income | 1,778 | 1,978 | 5,128 | 5,095 | ||||||||||||
| Other income (expense), net | 185 | (258 | ) | 395 | 1,091 | |||||||||||
| Total other expense, net | (2,011 | ) | (2,496 | ) | (6,801 | ) | (6,017 | ) | ||||||||
| Loss before income taxes | (46,059 | ) | (38,642 | ) | (136,887 | ) | (140,790 | ) | ||||||||
| Provision for income taxes | 401 | 1,030 | 1,264 | 2,943 | ||||||||||||
| Net loss | (46,460 | ) | (39,672 | ) | (138,151 | ) | (143,733 | ) | ||||||||
| Accretion of non-convertible preferred stock | (14,652 | ) | (11,772 | ) | (41,608 | ) | (33,390 | ) | ||||||||
| Net loss attributable to common stockholders | $ | (61,112 | ) | $ | (51,444 | ) | $ | (179,759 | ) | $ | (177,123 | ) | ||||
| Net loss per share, basic and diluted | $ | (1.74 | ) | $ | (1.53 | ) | $ | (5.18 | ) | $ | (5.36 | ) | ||||
| Weighted-average shares used in computing net loss per share, basic and diluted | 35,094,547 | 33,588,617 | 34,690,079 | 33,043,071 | ||||||||||||
| Disaggregated Revenue | ||||||||||||||||
| Three Months Ended October 31, | Nine Months Ended October 31, | |||||||||||||||
| 2024 | 2023 | 2024 | 2023 | |||||||||||||
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