ServiceTitan’s QQ3 2024 results show a still-growing top line but ongoing profitability challenges. Revenue reached $199.28 million, up 23.19% year over year and 9.70% quarter over quarter. Gross profit was $129.95 million, yielding a gross margin of 65.2%. However, operating income remained negative at -$44.05 million and net income was -$46.46 million, with EPS of -$1.74 (diluted -$1.32). EBITDA was -$21.86 million, reflecting continued investment in R&D and go-to-market initiatives. Despite the negative GAAP bottom line, the company generated positive operating cash flow of $15.53 million and free cash flow of $10.57 million, supported by a cash balance of $135.09 million and modest capital expenditure.
Key Performance Indicators
Revenue
Increasing
199.28M
QoQ: 9.70% | YoY: 23.19%
Gross Profit
Increasing
129.95M
65.21% margin
QoQ: 14.95% | YoY: 29.67%
Operating Income
Increasing
-44.05M
QoQ: -2.39% | YoY: 8.41%
Net Income
Increasing
-46.46M
QoQ: -1.34% | YoY: 9.63%
EPS
Increasing
-1.74
QoQ: -18.37% | YoY: 7.45%
Revenue Trend
Margin Analysis
Financial Highlights
Overview of key metrics and trends:
- Revenue: $199.28M; YoY +23.19%; QoQ +9.70%
- Gross Profit: $129.95M; Gross Margin 65.21%
- Operating Income: -$44.05M; OpEx elevated with R&D at $65.94M and SG&A + S&M combined at $97.33M
- EBITDA: -$21.86M; EBITDA margin -10.97%
- Net Income: -$46.46M; Net margin -23.31%
- EPS: -$1.74; Diluted EPS -$1.32
- Cash Flow: Operating cash flow $15.53M; Free cash flow $10.57M
- Liquidity: Cash $135.09M; Current ratio ~1.80; Cash ratio ~0.96; Debt ratios indicate modest leverage with negative equity dynamics impacting valuation metrics
- Valuation inputs: Price-to-sales ~13.52x; other multiples indicate a high-growth, high-investment profile with profitability lagging peers
Income Statement
Metric
Value
YoY Change
QoQ Change
Revenue
199.28M
23.19%
9.70%
Gross Profit
129.95M
29.67%
14.95%
Operating Income
-44.05M
8.41%
-2.39%
Net Income
-46.46M
9.63%
-1.34%
EPS
-1.74
7.45%
-18.37%
Key Financial Ratios
Gross Profit Margin
Excellent
65.20%
Gross profit margin is exceptional, indicating strong pricing power and operational efficiency
Operating Profit Margin
Weak
-0.22%
Operating margin is below industry norms, profitability concerns
Net Profit Margin
Weak
-0.23%
Net profit margin is below industry norms, profitability concerns
Return on Assets
Weak
-0.03%
Return on assets suggests inefficient capital allocation
Return on Equity
Fair
8.06%
Return on equity is acceptable but below top-tier companies
Current Ratio
Healthy
1.80
Current ratio shows adequate liquidity to meet short-term obligations
Debt to Equity
Conservative
-0.41
Debt-to-equity shows conservative leverage and low financial risk
P/E Ratio
Negative
-14.50x
Negative earnings make P/E ratio not meaningful
Price to Book
Undervalued
-4.67x
Trading below book value, potential value opportunity or distressed
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