TTAN ServiceTitan Inc

 

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549

 

FORM 8-K

 

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): January 13, 2025

 

 

ServiceTitan, Inc.

(Exact name of Registrant as Specified in Its Charter)

 

 

Delaware			001-42434	26-0331862
(State or Other Jurisdiction of Incorporation)			(Commission File Number)	(IRS Employer Identification No.)
801 N Brand Blvd. Suite 100
Glendale, California				91203
(Address of Principal Executive Offices)				(Zip Code)

 

Registrant’s Telephone Number, Including Area Code: (855) 899-0970

 

(Former Name or Former Address, if Changed Since Last Report)

 

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

Securities registered pursuant to Section 12(b) of the Act:

Title of each class		Trading Symbol(s)		Name of each exchange on which registered
Class A Common Stock, par value $0.001 per share		TTAN		The Nasdaq Stock Market LLC

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§ 230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§ 240.12b-2 of this chapter).

Emerging growth company ☒

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

 

 

---

Item 2.02 Results of Operations and Financial Condition.

On January 13, 2025, ServiceTitan, Inc. (the “Company”) issued a press release announcing its financial results for the third fiscal quarter ended October 31, 2024. In the press release, the Company also announced that it would hold a conference call to discuss these financial results on January 13, 2025 at 2:00 p.m. Pacific Time (5:00 p.m. Eastern Time). A copy of the press release is furnished hereto as Exhibit 99.1 to this Current Report on Form 8-K and is incorporated herein by reference.

The Company makes reference to non-GAAP financial information in the press release. A reconciliation of these non-GAAP financial measures to their nearest GAAP equivalents is provided in the press release.

The information in this Item 2.02, including Exhibit 99.1 furnished hereto, shall not be deemed to be “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities of that section. The information contained in this Item 2.02 and in the accompanying Exhibit 99.1 shall not be incorporated by reference into any other filing under the Exchange Act or under the Securities Act of 1933 as amended, whether made before or after the date hereof, regardless of any general incorporation language in such filing, except as shall be expressly set forth by specific reference in such filing.

Item 9.01 Financial Statements and Exhibits.

(d) The following exhibits are being filed herewith:

 

Exhibit No.		Description
99.1		Press Release, dated January 13, 2025.
104		Cover Page Interactive Data File (embedded within the Inline XBRL document).

 

---

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

 

		SERVICETITAN, INC.
Date: January 13, 2025		By:		/s/ Ara Mahdessian
				Ara Mahdessian
				Chief Executive Officer

 

---

 

Exhibit 99.1

ServiceTitan Announces Third Quarter Fiscal 2025 Financial Results

LOS ANGELES – January 13, 2025 – 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:

Loss from Operations:

Net Loss:

Cash:

 

_________________________

1 This press release uses non-GAAP financial measures that adjust GAAP financial measures for the impact of various items. See the section titled “Non-GAAP Financial Measures” and the tables entitled “GAAP to Non-GAAP Reconciliation” below for additional information.

---

Business and Operational Highlights:

Fiscal Fourth Quarter and Fiscal Year 2025 Financial Outlook:

For the fourth quarter of fiscal 2025, the Company currently expects:

For the full year fiscal 2025, the Company currently expects:

 

Conference Call Information:

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.

 

_________________________

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.

Press Contact

Max Wertheimer

ServiceTitan, Inc.

press@servicetitan.com

Investor Contact

Jason Rechel

ServiceTitan, Inc.

investors@servicetitan.com

© 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
Subscription		$	145,282			$	114,311			$	409,013			$	322,086
Usage			45,908				37,344				130,399				105,703
Platform revenue			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

 

---

ServiceTitan, Inc.

Condensed Consolidated Balance Sheets

(in thousands, except share and per share data)

(unaudited)

		As of
		October 31,				January 31,
		2024				2024
Assets
Current assets:
Cash and cash equivalents		$	133,811			$	146,710
Restricted cash			692				1,403
Accounts receivable, net of allowance of $5,929 and $3,762 as of October 31, 2024 and    January 31, 2024, respectively			41,218				28,046
Deferred contract costs, current			10,721				9,451
Contract assets			43,964				39,329
Prepaid expenses			18,813				22,652
Other current assets			3,370				1,640
Total current assets			252,589				249,231
Restricted cash, noncurrent			583				750
Deferred contract costs, noncurrent			9,277				8,399
Property and equipment, net			60,124				97,170
Operating lease right-of-use assets			25,572				43,270
Internal-use software, net			35,842				29,300
Intangible assets, net			226,394				251,347
Goodwill			845,836				830,872
Other assets			11,927				7,327
Total assets		$	1,468,144			$	1,517,666
Liabilities, Non-Convertible Preferred Stock, Redeemable Convertible Preferred Stock and    Stockholders' Deficit
Current liabilities:
Accounts payable and other accrued expenses		$	45,306			$	45,293
Accrued personnel related expenses			64,737				55,321
Deferred revenue, current			16,022				11,160
Operating lease liabilities, current			11,710				11,005
Short-term debt			1,073				1,800
Other current liabilities			1,133				688
Total current liabilities			139,981				125,267
Operating lease liabilities, noncurrent			50,201				58,576
Long-term debt, net			174,169				174,578
Other noncurrent liabilities			9,531				7,684
Total liabilities			373,882				366,105
Commitments and contingencies
Non-Convertible Preferred Stock
Non-convertible preferred stock, par value $0.001, 250,000 authorized, issued and outstanding as of    October 31, 2024 and January 31, 2024. Liquidation preference of $307,005 as of October 31, 2024			275,154				233,546
Redeemable Convertible Preferred Stock
Redeemable convertible preferred stock, par value $0.001, 42,465,855 shares authorized, issued and    outstanding as of October 31, 2024 and January 31, 2024. Liquidation preference of $1,398,054 as of    October 31, 2024			1,395,878				1,395,878
Stockholders' Deficit
Common stock, par value $0.001, 94,490,000 and 92,630,000 shares authorized as of October 31, 2024    and January 31, 2024, respectively. 35,397,085 shares and 34,185,388 shares issued and outstanding as of    October 31, 2024 and January 31, 2024, respectively			35				34
Additional paid-in capital			427,982				388,739
Accumulated deficit			(1,004,787	)			(866,636	)
Total stockholders' deficit			(576,770	)			(477,863	)
Total liabilities, non-convertible preferred stock, redeemable convertible preferred stock and    stockholders' deficit		$	1,468,144			$	1,517,666

 

 

 

 

---

ServiceTitan, Inc.

Condensed Consolidated Statements of Cash Flows

(in thousands)

(unaudited)

 

		Three Months Ended October 31,								Nine Months Ended October 31,
		2024				2023				2024				2023
Cash flows provided by (used in) operating activities
Net loss		$	(46,460	)		$	(39,672	)		$	(138,151	)		$	(143,733	)
Adjustments to reconcile net loss to net cash provided by (used in) operating activities
Depreciation and amortization expense			20,229				19,986				59,836				57,997
Amortization of deferred contract costs			2,971				2,433				8,364				6,865
Noncash operating lease expense			1,539				1,955				4,946				5,884
Stock-based compensation expense			25,426				19,462				69,050				72,037
Loss on impairment and disposal of assets			8,312				431				38,586				604
Change in valuation of contingent consideration			—				—				(135	)			(900	)
Deferred income taxes			133				784				1,254				1,647
Amortization of debt issuance costs			87				39				214				93
Provision for credit losses			976				857				2,816				1,636
Changes in operating assets and liabilities, net of effect of business acquisition:
Accounts receivable			(2,480	)			2,330				(13,563	)			(6,346	)
Prepaid expenses and other current assets			6,614				(164	)			3,260				1,179
Deferred contract costs			(4,802	)			(3,207	)			(10,511	)			(9,070	)
Contract assets			(2,186	)			(3,959	)			(4,635	)			(9,277	)
Other assets			(875	)			(564	)			(532	)			(686	)
Accounts payable and other accrued expenses			(4,717	)			(2,893	)			(4,434	)			(3,475	)
Accrued personnel related expenses			12,505				2,534				9,119				(13,381	)
Operating lease liabilities			(3,953	)			(2,010	)			(7,830	)			(6,062	)
Other liabilities			925				1,097				1,421				(1,567	)
Deferred revenue			1,290				979				2,551				991
Net cash provided by (used in) operating activities			15,534				418				21,626				(45,564	)
Cash flows used in investing activities
Capitalized internal-use software			(3,961	)			(3,784	)			(14,161	)			(12,831	)
Purchase of property and equipment			(1,002	)			(2,786	)			(2,803	)			(23,401	)
Deposits for property and equipment			—				(54	)			—				(344	)
Repayment of loan to employee			—				—				—				1,529
Acquisition of business, net of cash acquired			—				—				(1,184	)			—
Net cash used in investing activities			(4,963	)			(6,624	)			(18,148	)			(35,047	)
Cash flows provided by (used in) financing activities
Payment of contingent consideration			—				(120	)			(300	)			(610	)
Proceeds from exercise of stock options			1,093				1,323				4,307				8,044
Proceeds from issuance of preferred stock			—				—				—				34,000
Payment of preferred stock issuance costs			—				—				—				(409	)
Payment of debt arrangements			(450	)			(450	)			(1,350	)			(900	)
Payment of deferred initial public offering costs			(106	)			—				(949	)			—
Shares repurchased for tax withholding for the settlement of restricted stock units			(5,398	)			(9,506	)			(18,963	)			(11,992	)
Net cash provided by (used in) financing activities			(4,861	)			(8,753	)			(17,255	)			28,133
Net increase (decrease) in cash, cash equivalents, and restricted cash			5,710				(14,959	)			(13,777	)			(52,478	)
Cash, cash equivalents, and restricted cash
Beginning of period			129,376				167,124				148,863				204,643
End of period		$	135,086			$	152,165			$	135,086			$	152,165

 

---

 

 

 

 

 

Non-GAAP Financial Measures

In addition to our results prepared in accordance with GAAP, we believe non-GAAP gross profit and non-GAAP gross margin in total and for platform and professional services and other, non-GAAP sales and marketing expense, non-GAAP research and development expense, non-GAAP general and administrative expense, non-GAAP income (loss) from operations, non-GAAP operating margin, and non-GAAP net income (loss) are useful in evaluating our operating performance.

These measures, however, have certain limitations in that they reflect the exercise of judgment by our management about which expenses are excluded or included and do not include the impact of certain expenses that are reflected in our consolidated statement of operations that are necessary to run our business. These non-GAAP financial measures should be considered in addition to, not as a substitute for or in isolation from, our financial results determined in accordance with GAAP. We caution investors that amounts presented in accordance with our definition of non-GAAP gross profit, non-GAAP gross margin, non-GAAP sales and marketing expense, non-GAAP research and development expense, non-GAAP general and administrative expense, non-GAAP income (loss) from operations, non-GAAP operating margin and non-GAAP net income (loss) may not be comparable to similar measures disclosed by other companies because not all companies and analysts calculate these measures in the same manner.

For the reasons set forth below, we believe that excluding the following items provides information that is helpful in understanding our operating results, evaluating our future prospects, comparing our financial results across accounting periods, and comparing our financial results to our peers, many of which provide similar non-GAAP financial measures.

 

---

 

Free Cash Flow

We define free cash flow as net cash provided by (used in) operating activities less cash used for investing activities for capitalized internal use software and less cash paid for purchases of, and deposits for, property and equipment. We believe that free cash flow is a meaningful indicator of our sources of liquidity and capital requirements that provides information to management and investors in evaluating the cash flow trends of our business. Once our business needs and obligations are met, cash can be used to maintain a strong balance sheet and invest in future growth. Free cash flow has limitations as an analytical tool and should not be considered in isolation or as a substitute for analysis of our results as reported under GAAP. Other companies may calculate free cash flow or similarly titled non-GAAP measures differently, which could reduce the usefulness of free cash flow as a tool for comparison. In addition, free cash flow does not reflect mandatory debt service and other non-discretionary expenditures that are required to be made under contractual commitments and does not represent the total increase or decrease in our cash balance for any given period.

 

 

ServiceTitan, Inc.

GAAP to Non-GAAP Reconciliations

(unaudited)

 

Non-GAAP Gross Profit and Non-GAAP Gross Margin

 

		Platform								Professional Services and Other								Total
		Three Months Ended October 31,								Three Months Ended October 31,								Three Months Ended October 31,
		2024				2023				2024				2023				2024				2023
		(in thousands)
GAAP gross profit		$	138,986			$	109,619			$	(9,041	)		$	(6,851	)		$	129,945			$	102,768
Stock-based compensation expense    and related employer payroll taxes			1,634				1,399				1,159				1,102				2,793				2,501
Amortization of acquired intangible   assets			5,533				5,502				334				484				5,867				5,986
Restructuring charges			—				—				—				—				—				—
Loss on operating lease assets			1,189				—				563				—				1,752				—
Non-GAAP gross profit		$	147,342			$	116,520			$	(6,985	)		$	(5,265	)		$	140,357			$	111,255

 

---

		Platform								Professional Services and Other								Total
		Three Months Ended October 31,								Three Months Ended October 31,								Three Months Ended October 31,
		2024				2023				2024				2023				2024				2023
GAAP gross margin			73	%			72	%			(112	)%			(81	)%			65	%			64	%
Stock-based compensation expense    and related employer payroll taxes			1	%			1	%			14	%			13	%			1	%			2	%
Amortization of acquired intangible    assets			3	%			4	%			4	%			6	%			3	%			4	%
Restructuring charges			0	%			0	%			0	%			0	%			0	%			0	%
Loss on operating lease assets			1	%			0	%			7	%			0	%			1	%			0	%
Non-GAAP gross margin			77	%			77	%			(86	)%			(62	)%			70	%			69	%

 

		Platform								Professional Services and Other								Total
		Nine Months Ended October 31,								Nine Months Ended October 31,								Nine Months Ended October 31,
		2024				2023				2024				2023				2024				2023
		(in thousands)
GAAP gross profit		$	390,215			$	301,850			$	(27,464	)		$	(25,432	)		$	362,751			$	276,418
Stock-based compensation expense    and related employer payroll taxes			4,161				4,361				3,165				3,436				7,326				7,797
Amortization of acquired intangible   assets			16,369				16,506				1,452				1,452				17,821				17,958
Restructuring charges			386				1,160				129				1,969				515				3,129
Loss on operating lease assets			5,390				—				2,556				—				7,946				—
Non-GAAP gross profit		$	416,521			$	323,877			$	(20,162	)		$	(18,575	)		$	396,359			$	305,302

 

		Platform								Professional Services and Other								Total
		Nine Months Ended October 31,								Nine Months Ended October 31,								Nine Months Ended October 31,
		2024				2023				2024				2023				2024				2023
GAAP gross margin			72	%			71	%			(118	)%			(103	)%			64	%			61	%
Stock-based compensation expense    and related employer payroll taxes			1	%			1	%			14	%			14	%			1	%			2	%
Amortization of acquired intangible    assets			3	%			4	%			6	%			6	%			3	%			4	%
Restructuring charges			0	%			0	%			1	%			8	%			0	%			1	%
Loss on operating lease assets			1	%			0	%			11	%			0	%			1	%			0	%
Non-GAAP gross margin			77	%			76	%			(87	)%			(75	)%			70	%			67	%

 

Non-GAAP Sales and Marketing Expense

 

		Three Months Ended October 31,								Nine Months Ended October 31,
		2024				2023				2024				2023
		(in thousands)
GAAP sales and marketing expense		$	67,795			$	60,097			$	183,614			$	163,305
Stock-based compensation expense    and related employer payroll taxes			(4,132	)			(4,419	)			(11,776	)			(14,305	)
Amortization of acquired intangible assets			(5,606	)			(5,547	)			(16,662	)			(17,033	)
Restructuring charges			—				—				(292	)			(1,647	)
Loss on operating lease assets			(1,467	)			—				(6,900	)			—
Non-GAAP sales and marketing expense		$	56,590			$	50,131			$	147,984			$	130,320

 

---

Non-GAAP Research and Development Expense

 

		Three Months Ended October 31,								Nine Months Ended October 31,
		2024				2023				2024				2023
		(in thousands)
GAAP research and development expense		$	65,935			$	49,094			$	186,997			$	149,114
Stock-based compensation expense    and related employer payroll taxes			(10,451	)			(7,621	)			(28,060	)			(25,023	)
Acquisition-related items			—				—				(250	)			—
Restructuring charges			—				—				(991	)			(1,418	)
Loss on operating lease assets			(1,468	)			—				(6,711	)			—
Non-GAAP research and development expense		$	54,016			$	41,473			$	150,985			$	122,673

 

Non-GAAP General and Administrative Expense

 

		Three Months Ended October 31,								Nine Months Ended October 31,
		2024				2023				2024				2023
		(in thousands)
GAAP general and administrative expense		$	40,263			$	29,723			$	122,226			$	98,772
Stock-based compensation expense    and related employer payroll taxes			(8,408	)			(5,789	)			(23,600	)			(26,713	)
Acquisition-related items			(6	)			10				(1,933	)			893
Restructuring charges			—				—				(698	)			(1,449	)
Loss on operating lease assets			(3,660	)			—				(16,958	)			—
Non-GAAP general and administrative expense		$	28,189			$	23,944			$	79,037			$	71,503

 

Non-GAAP Income (Loss) from Operations and Non-GAAP Operating Margin

 

		Three Months Ended October 31,								Nine Months Ended October 31,
		2024				2023				2024				2023
		(in thousands)
GAAP loss from operations		$	(44,048	)		$	(36,146	)		$	(130,086	)		$	(134,773	)
Stock-based compensation expense and    related employer payroll taxes			25,784				20,330				70,762				73,838
Amortization of acquired intangible assets			11,473				11,533				34,483				34,991
Restructuring charges			—				—				2,496				7,643
Acquisition-related items			6				(10	)			2,183				(893	)
Loss on operating lease assets			8,347				—				38,515				—
Non-GAAP income (loss) from operations		$	1,562			$	(4,293	)		$	18,353			$	(19,194	)

 

		Three Months Ended October 31,								Nine Months Ended October 31,
		2024				2023				2024				2023
GAAP operating margin			(22	)%			(23	)%			(23	)%			(30	)%
Stock-based compensation expense and    related employer payroll taxes			13	%			13	%			13	%			16	%
Amortization of acquired intangible assets			6	%			7	%			6	%			8	%
Restructuring charges			0	%			0	%			0	%			2	%
Acquisition-related items			0	%			(0	)%			0	%			(0	)%
Loss on operating lease assets			4	%			0	%			7	%			0	%
Non-GAAP operating margin			1	%			(3	)%			3	%			(4	)%

 

---

Non-GAAP Net Income (Loss)

 

		Three Months Ended October 31,								Nine Months Ended October 31,
		2024				2023				2024				2023
		(in thousands)
GAAP net loss		$	(46,460	)		$	(39,672	)		$	(138,151	)		$	(143,733	)
Stock-based compensation expense and    related employer payroll taxes			25,784				20,330				70,762				73,838
Amortization of acquired intangible assets			11,473				11,533				34,483				34,991
Restructuring charges			—				—				2,496				7,643
Acquisition-related items			6				(10	)			2,183				(893	)
Loss on operating lease assets			8,347				—				38,515				—
Income tax effects related to the above adjustments (1)			(298	)			632				(1,207	)			1,508
Non-GAAP net income (loss)		$	(1,148	)		$	(7,187	)		$	9,081			$	(26,646	)

(1) This amount represents adjustments for the current and deferred income tax effects on non-GAAP net income (loss) for the impact of the non-GAAP adjustments above.

 

Free Cash Flow

 

		Three Months Ended October 31,								Nine Months Ended October 31,
		2024				2023				2024				2023
		(in thousands)
Net cash provided by (used in) operating activities		$	15,534			$	418			$	21,626			$	(45,564	)
Capitalized internal-use software			(3,961	)			(3,784	)			(14,161	)			(12,831	)
Purchase of property and equipment			(1,002	)			(2,786	)			(2,803	)			(23,401	)
Deposits for property and equipment			-				(54	)			-				(344	)
Non-GAAP free cash flow		$	10,571			$	(6,206	)		$	4,662			$	(82,140	)

 

---

v3.24.4

Document And Entity Information	Jan. 13, 2025
Cover [Abstract]
Document Type	8-K
Amendment Flag	false
Document Period End Date	Jan. 13, 2025
Entity Registrant Name	ServiceTitan, Inc.
Entity Central Index Key	0001638826
Entity Emerging Growth Company	true
Entity File Number	001-42434
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	26-0331862
Entity Address, Address Line One	801 N Brand Blvd.
Entity Address, Address Line Two	Suite 100
Entity Address, City or Town	Glendale
Entity Address, State or Province	CA
Entity Address, Postal Zip Code	91203
City Area Code	(855)
Local Phone Number	899-0970
Written Communications	false
Soliciting Material	false
Pre-commencement Tender Offer	false
Pre-commencement Issuer Tender Offer	false
Entity Ex Transition Period	false
Title of 12(b) Security	Class A Common Stock, par value $0.001 per share
Trading Symbol	TTAN
Security Exchange Name	NASDAQ

---