Episode Details

ServiceTitan Q1 FY2027 earnings breakdown - conversational walkthrough with a price-aware verdict and Wall Street consensus comparison. THE CALL: BUY (4/5 conviction, STRONG) - CURRENT @ $80.51 - BUY - BUY below $74.07 with $64.41 stop - AVOID above $116.74 TRIGGER: Q2 FY27 revenue at or above guided $285M AND GTV growth holding at or above 20% WINDOW: 12-18 months — first-public-year inflection plus multi-quarter beat-and-raise sequence TRACKER: chargedalpha.com WALL STREET CONSENSUS - Ratings: 9 Strong Buy / 11 Buy / 4 Hold / 0 Sell / 0 Strong Sell - BUY - Median 12-month price target: $116.00 (range $100 - $125) - Charged Alpha vs consensus: Charged Alpha aligns with Street consensus — BUY with strong conviction, buy below $100. THESIS ServiceTitan is the de facto operating system for the trades industry — contractors run dispatch, invoicing, payments, and financing on a single integrated stack with high switching costs. Bull lever: Revenue compounds to two billion by FY2030 at twenty-percent growth, non-GAAP op margin expands to twenty-percent, and the stock re-rates to ten times forward EV/Sales — implying double or better from current levels. Key risk: SBC-heavy dilution combined with macro residential construction sensitivity creates downside if growth decelerates or stock catches a multiple compression. QUALITY CHECK - Management quality grade: A (Co-founder CEO Ara Mahdessian — with the company since 2003; took it public December 2024; first full public year delivers beat-and-raise; meaningful insider ownership; long tenure aligned with platform thesis) - Earnings quality grade: B+ (Non-GAAP EPS beat is clean; GAAP still loss-making at $22.8M; platform revenue is real recurring SaaS; SBC at twenty percent of revenue is high for the stage; non-GAAP-to-GAAP gap is the key disclosure) CHAPTERS 0:00 Hook 0:12 S0b_Year 0:47 The Print 1:47 S1b_BeatDecomp 2:23 The Trend 3:03 The Segments 3:41 The FCF Bridge 4:25 S4b_MarginQual 5:07 Guidance & The Narrative Diff 6:02 S5b_Catalyst 6:38 Peer Dot-Plot 7:19 S6b_Valuation 7:59 Management & Earnings Quality 8:40 S8a_Call 9:19 S8b_Call KEY METRICS - Q1 FY2027 - Revenue: $0.27B (YoY +24.6%, beat est by +4.9%) - EPS: $0.37 (vs $0.28 est, beat +32.1%) - Operating margin: 15.2% - Free cash flow: $0.03B (12.6% margin) ServiceTitan delivered its first clean beat-and-raise as a public company — revenue up twenty-four-point-six percent to two hundred sixty-nine million, EPS of thirty-seven cents crushing the twenty-eight-cent estimate, GTV at twenty-one-point-seven billion plus twenty-three percent year over year, and both Q2 and FY27 guidance raised. Non-GAAP operating margin inflected positive at fifteen-point-two percent — the first clean profitable quarter in eight. At seven-point-two times forward EV/Sales the stock trades cheaper than every vertical SaaS peer, with analyst consensus price target of one hundred fifteen implying roughly forty-three percent upside. BUY below $100, strong conviction; key risk remains SBC-driven dilution. NARRATIVE DIFF - what changed in management tone - Prior call: "Last quarter Ara Mahdessian framed ServiceTitan as still early in the trades-industry digitization opportunity, with platform revenue compounding and GTV scaling as contractors adopt the integrated software stack." - This call: "We delivered a beat-and-raise quarter — platform revenue grew twenty-five percent, GTV reached twenty-one-point-seven billion, and our customers are seeing measurable productivity gains. We are raising our full-year outlook." - Tone shift: Growth re-accelerated, non-GAAP op margin inflected to plus fifteen percent, and management raised the guide — all three lines that mattered moved in the same direction simultaneously DATA SOURCES - FMP (financialmodelingprep.com) - ServiceTitan Q1 FY2027 press release + earnings call DISCLAIMER This is for informational and educational purposes only. Not financial advic