ServiceTitan Stock Plummets 8% Despite Q4 Earnings Beat

Los Angeles - ServiceTitan Inc. (NASDAQ: TTAN) reported fourth-quarter results that exceeded analyst expectations, but the stock still fell 8% as investors focused on the company’s guidance for the current quarter and fiscal year.

The software platform company posted adjusted earnings of $0.27 per share, beating analyst estimates of $0.18 by $0.09. Quarterly revenue reached $254 million as of January 31, 2025, up 21% year-over-year from $209.3 million, surpassing the market consensus of $245.5 million. The company also achieved an annualized revenue run rate of over $1 billion during this period.

For the first quarter of fiscal 2027, ServiceTitan issued revenue guidance of $255 million to $257 million, with a midpoint of $256 million, slightly above the analyst consensus of $252.1 million. For the full fiscal year 2027, the company expects revenue between $1.11 billion and $1.12 billion, with a midpoint of $1.115 billion, slightly higher than the market expectation of $1 billion.

“Our vision and mission from the start have been simple: to enhance customer revenue and profit margins through automation,” said co-founder and CEO Ara Mahdessian. “I am incredibly proud to have surpassed a $1 billion annualized revenue run rate and excited to see our vision accelerating faster than we imagined.”

The company reported adjusted operating income of $27.1 million, with an operating profit margin of 10.7%, compared to $6.9 million and a margin of 3.3% in the same period last year. Platform revenue grew 23% year-over-year to $245.1 million. ServiceTitan ended the quarter with approximately 10,800 active customers, up from about 9,500 a year earlier, while net dollar retention remained above 110%.

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