ServiceTitan Q2 revenue growth decelerates despite Max rollout gains
ServiceTitan Q2 revenue growth decelerates despite Max rollout gains
Overview
U.S. trades software platform's fiscal Q2 revenue grew 21% yr/yr, beating analyst expectations
Company posted GAAP net loss but generated over $50 mln non-GAAP free cash flow
Growth driven by adoption of Agentic Operating System and AI investments
Outlook
Q3 revenue outlook of $285 million-$287 million implies a sequential dip from Q2's $292.8 million
Company sees full-year 2027 revenue of $1.139 bln to $1.144 bln
ServiceTitan forecasts full-year 2027 non-GAAP income from operations of $152 mln to $154 mln
Result Drivers
AGENTIC OPERATING SYSTEM - Co said revenue growth was driven by momentum in delivering its Agentic Operating System to the trades
AI INVESTMENTS - Co said investments in AI improved organizational velocity and contributed to results
MAX LOCATIONS EXPANSION - Co exceeded goal of doubling Max locations in Q2 and expects over 700 enrolled by year-end
Company press release: ID:nGNX2xvjrn
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q2 Revenue | Beat | $292.80 mln | $285.96 mln (16 Analysts) |
Q2 Net Loss |
| $24.92 mln |
|
Q2 Gross Profit |
| $209.07 mln |
|
Q2 Income from Operations |
| -$27.60 mln |
|
Q2 Loss Per Basic Share |
| $0.26 |
|
Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 15 "strong buy" or "buy", 2 "hold" and no "sell" or "strong sell"
The average consensus recommendation for the software peer group is "buy"
Wall Street's median 12-month price target for ServiceTitan, Inc. is $110.00, about 25.1% above its September 4 closing price of $87.92
The stock recently traded at 58 times the next 12-month earnings vs. a P/E of 52 three months ago
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For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.
(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)