Executive Summary
ServiceTitan reported QQ2 2024 revenue of $181.66 million, up 13.5% year over year, driven by ongoing demand for its field service software platform. The gross margin stood at 62.2%, indicating a solid product cost structure for a SaaS/recurring-revenue model, but the quarter delivered an operating loss of $43.02 million and a net loss of $45.82 million, translating to negative operating and net margins (~-23.7% and ~-25.2%, respectively). These profit metrics reflect continued, intentional reinvestment in product development and go-to-market activities as the company scales. Management commentary (not captured in the provided transcript data) would typically address go-to-market efficiency, customer expansion, and product development cadence; in the absence of transcript content, the qualitative take centers on the cadence between top-line growth and the evolving cost structure.
From a cash-flow perspective, QQ2 2024 generated $3.05 million of operating cash flow and $0.90 million of capital expenditures, producing free cash flow of approximately $2.15 million. This demonstrates modest cash-generation despite a GAAP loss, underscoring the company’s ongoing investment in growth initiatives while preserving liquidity. Balance-sheet indicators show a relatively conservative leverage profile with a low debt footprint, and a cash per share position of about $4.80. However, several leverage and valuation metrics imply structural headwinds (negative equity multiplier and anomalous enterprise-value multiples in the data) that should be interpreted with caution and in the context of stock-based compensation and non-cash adjustments common in growth-stage SaaS companies. The lack of an explicit forward guidance in the provided dataset necessitates reliance on historical growth, margin trajectory, and cash-flow discipline to frame the near-term investment thesis.
Key Performance Indicators
Key Insights
Revenue: $181.66M (Q2 2024); YoY growth: +13.48%; QoQ: N/A
Gross Profit: $113.05M; Gross Margin: 62.23%; YoY Gross Profit growth: +10.00%; QoQ: N/A
Operating Income: -$43.02M; Operating Margin: -23.68% (YoY change: -19.01%); QoQ: N/A
Net Income: -$45.82M; Net Margin: -25.22% (YoY change: -15.56%); QoQ: N/A
Earnings Per Share (diluted): -$1.33 (approximate from the data set; basic EPS per the quarter data not explicitly separated in the provided fields)
Weighted Average Shares Outstanding: ~26.65...
Financial Highlights
Revenue: $181.66M (Q2 2024); YoY growth: +13.48%; QoQ: N/A
Gross Profit: $113.05M; Gross Margin: 62.23%; YoY Gross Profit growth: +10.00%; QoQ: N/A
Operating Income: -$43.02M; Operating Margin: -23.68% (YoY change: -19.01%); QoQ: N/A
Net Income: -$45.82M; Net Margin: -25.22% (YoY change: -15.56%); QoQ: N/A
Earnings Per Share (diluted): -$1.33 (approximate from the data set; basic EPS per the quarter data not explicitly separated in the provided fields)
Weighted Average Shares Outstanding: ~26.65M (basic) / ~34.49M (diluted proxy in the dataset portion for Q2 2024 rows).
Income Statement
| Metric |
Value |
YoY Change |
QoQ Change |
Key Financial Ratios
operatingProfitMargin
-23.7%
operatingCashFlowPerShare
$0.11
freeCashFlowPerShare
$0.08
priceEarningsRatio
-14.69
Management Commentary
Transcript data not provided in the supplied input. As such, no management quotes or thematic highlights from the QQ2 2024 earnings call are available. If you share the earnings-call transcript, I can extract key themes by category (strategy, product road map, go-to-market, customer signals, and macro commentary) and provide quotable takeaways aligned to the themes.
Forward Guidance
No explicit forward guidance appears in the provided data for QQ2 2024. In absence of stated targets, investors should monitor the following proximate catalysts: (1) trajectory of ARR growth and per-customer expansion (upsell into new modules or higher-tier plans), (2) progress toward improving operating efficiency and gross margin expansion, aided by scale and productization of services, (3) stabilization or reduction of net cash burn through better CAC payback and operating leverage, and (4) cash generation consistency across quarters. Given the current margin profile, the key question is whether marketing R&D investments will yield disproportionate returns in terms of ARR and retention over the next several quarters.