ServiceTitan (TTAN) Q1 2027 earnings summary

Executive summary

• Q1 2027 revenue grew 25% year-over-year to $268.8M–$269M, driven by strong customer ROI, operational efficiency, and both subscription and usage-based platform revenue increases.

• Gross transaction volume (GTV) reached $21.7B–$22B, up 23% year-over-year, reflecting robust platform adoption.

• Net dollar retention exceeded 110%, with enterprise segment surpassing 2,000 customers with annualized billings over $100,000, now representing over 60% of annualized billings.

• Significant progress in rolling out Max, the agentic operating system, with more than double the number of locations on Max in Q1 and plans to double again in Q2.

• AI-driven automation and agentic workflows are delivering measurable productivity and revenue gains for customers, with continued expansion of the product suite.

Financial highlights

• Platform revenue increased 25% to $260.6M; professional services and other revenue rose 7% to $8.3M.

• Platform gross margin improved to 81.3% (up 160 bps YoY); total gross margin at 75.3% (up 170 bps YoY); GAAP gross margin improved to 72.1% from 68.8%.

• Q1 operating income was $40.8M (15.2% margin, up 770 bps YoY); non-GAAP net income was $36.7M, up from $17.9M YoY.

• Free cash flow was -$9.6M, improved from -$22.3M YoY, reflecting seasonal bonus payments and continued investment.

• Net loss narrowed to $22.8M from $46.4M in the prior year quarter; non-GAAP EPS (diluted) was $0.37, up from $0.18.

Outlook and guidance

• Q2 2027 revenue expected between $284M and $286M; operating income between $38M and $39M.

• FY 2027 revenue guidance raised to $1.13–$1.14B; operating income expected between $142M and $147M.

• Incremental operating margins for FY 2027 now expected to exceed initial 25% target; long-term non-GAAP gross margin target is ~77%.

• Annual free cash flow projected to approximate annual non-GAAP operating income; target free cash flow conversion above 90%.

• Adopted a fixed long-term projected non-GAAP tax rate of 18% for FY 2027–2030.