ServiceTitan Q1 Earnings Call Highlights

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ServiceTitan (NASDAQ:TTAN) reported 25% year-over-year revenue growth for its fiscal first quarter of 2027, as executives said the company benefited from healthy demand across residential and commercial trades, stronger gross transaction volume and early traction for its AI-focused Max offering.

Co-founder and CEO Ara Mahdessian said ServiceTitan’s focus on customer return on investment helped produce “healthy efficiency, and record operating margins” in the quarter. The company is positioning Max as part of what management repeatedly described as an “agentic operating system for the trades,” designed to automate workflows across lead generation, appointment booking, field work and back-office operations.

Revenue rises 25% as GTV grows 23%

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CFO Dave Sherry said gross transaction volume, or GTV, totaled $21.7 billion in the quarter, up 23% from a year earlier. The quarter benefited from one additional business day compared with the prior-year period, which Sherry said added roughly 150 basis points to GTV growth. Weather provided another roughly 150-basis-point tailwind, helped by January ice storms that pushed activity into the quarter and an unusually early start to the cooling season.

Total revenue was $268.8 million, up 25% year over year. Subscription revenue rose 24% to $202 million, led by growth in Pro, commercial and “initial upside for Max,” according to Sherry. Usage revenue increased 29% to $58.5 million, with fintech revenue supported by higher on-platform monetization and commercial GTV strength. Sherry said ecosystem and virtual agent revenue also grew well.

Platform revenue, which includes subscription and usage revenue, grew 25% to $260.6 million. Professional services revenue was $8.3 million. Net dollar retention was greater than 110% for the quarter.

On profitability, Sherry said platform gross margin was 81.3%, up 160 basis points year over year, while total gross margin was 75.3%, up 170 basis points. Non-GAAP operating income was $40.8 million, producing an operating margin of 15.2%, an improvement of 770 basis points from the year-ago period. Free cash flow was negative $9.6 million, compared with negative $22.3 million in the prior-year quarter.

Guidance raised for fiscal 2027

For the fiscal second quarter, ServiceTitan guided for total revenue of $284 million to $286 million and non-GAAP operating income of $38 million to $39 million.

For the full fiscal year 2027, the company expects total revenue of $1.13 billion to $1.14 billion and operating income of $142 million to $147 million. Sherry said the company now expects full-year incremental operating margins to be higher than its initial target of 25%, while also increasing investments in Max and AI inference.

Sherry said the company is not assuming a different weather pattern for the rest of the year despite the strong first quarter. In response to analyst questions, he said summer conditions will heavily influence whether first-quarter GTV appears more heavily weighted than in prior years. “If the summer is hot, I’d expect it to be sort of a normal pattern,” he said. “If the summer’s more mild, then I’d expect it to be maybe a little bit higher in Q1.”

Max rollout expands, with management emphasizing ROI

Mahdessian highlighted E·D·S Air Conditioning Plumbing, a South Florida HVAC and plumbing contractor, as an example of Max adoption. He said E·D·S saw call booking rates increase roughly 16 percentage points, field close rates rise more than nine points, average ticket size increase more than 30% and average revenue per technician rise more than 50% in the first quarter of 2026 compared with the prior-year period.

Mahdessian said nearly half of E·D·S jobs during the quarter were touched by ServiceTitan’s optimization engine. He quoted E·D·S founder Ed Sasso as saying the company can now manage jobs, accounting and costs “without adding layers of people,” while scaling the business without additional overhead.

Co-founder and President Vahe Kuzoyan said ServiceTitan more than doubled the number of locations on Max during the first quarter and expects to double that number again in the second quarter. He said every fully ramped Max customer is running at least one fully automated job where the only human intervention is the technician in the field. Across fully ramped Max customers, he said more than 10% of jobs are now fully automated on average.

Executives stressed that Max is not merely a bundle of ServiceTitan’s Pro Products. Mahdessian said Max includes 25 agentic capabilities, only about seven of which had previously been available as Pro Products. These capabilities span demand generation, booking conversion and field conversion, including ad optimization, email marketing, speed-to-lead functionality, voice agents, SMS agents, CSR coaching, technician assignment and follow-up on unsold estimates.

Kuzoyan said the company is intentionally limiting the pace of rollout to ensure customer ROI and scalability. “We have way more demand than what we’ve been onboarding,” he said, adding that the company wants to protect “the brand and reputation of Max” and the durability of customers on the program.

Enterprise customers and commercial growth remain priorities

Kuzoyan said ServiceTitan surpassed 2,000 customers with annualized billings greater than $100,000 during the quarter. That cohort now represents more than 60% of annualized billings and remains the company’s fastest-growing segment, he said.

Management said private equity-backed operators continue to be a fast-growing part of the business. Sherry said the company’s recent private equity symposium brought together large operators and sponsors and reinforced management’s view that ServiceTitan serves as the “execution layer,” “orchestration layer” and “interaction layer” for trade businesses.

In commercial, Kuzoyan said the company launched invoicing agents, equipment systems and enhanced CRM capabilities during the quarter. In roofing, he said ServiceTitan continues to work on roofing-specific and insurance workflows to support future growth.

Virtual agents and internal AI tools draw attention

Mahdessian said ServiceTitan gave selected customers access to an early version of its voice agents in the fourth quarter and expanded production use cases during the first quarter. He said a broader go-to-market effort began late in the first quarter, with penetration still low but “ramping quite well.”

Executives said virtual agents may help customers handle call surges and after-hours demand, particularly when individual calls can represent thousands of dollars of revenue. Kuzoyan said the company recently introduced outbound calling and receptionist capabilities.

ServiceTitan is also using AI internally to accelerate product development. Kuzoyan said the company’s goal is to build a “software factory” where AI agents play a central role in code development. He said AI is being used across the product life cycle, including user feedback collection, design ideation, code creation and bug detection.

Mahdessian said improved research and development velocity could have significant long-term implications for the business. “There is nothing more important than the long-term success of our company than our ability to get the benefits of AI, particularly within our R org,” he said.

About ServiceTitan (NASDAQ:TTAN)

ServiceTitan, Inc (NASDAQ: TTAN) is a cloud-based software provider specializing in end-to-end business management solutions for residential and commercial trade contractors. The company's platform integrates customer relationship management, scheduling and dispatch, mobile workforce management, invoicing, payments and reporting tools into a single suite. By automating key back-office processes, ServiceTitan helps field service businesses improve operational efficiency, enhance customer experience and drive revenue growth.

At the core of ServiceTitan's offering is a mobile application that allows technicians to access job details, update work orders, capture signatures and process payments from the field.

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