ServiceTitan, Inc.

Thank you for standing by and welcome to Service Titans Fiscal First Quarter 2027 Earnings Conference Call. Currently, all participants are in a listen-only mode. After the speaker's presentation, there will be a question and answer session. To ask a question during the session, you will need to press star 1-1 on your telephone. To remove yourself from the queue, please press star 1-1 again. I would now like to hand the call over to Jason Reckle. Please, go ahead.

Thank you, Operator. And welcome, everyone, to Service Titans Fiscal First Quarter 2027 Earnings Conference Call. With me are Service Titans Co-Founder and CEO, R.M. Adessian, Co-Founder and President, Vahe Kazilian, and CFO, Dave Sherry. During today's call, we will review our Fiscal First Quarter 2027 results. We will also discuss our guidance for the second fiscal quarter and full fiscal year 2027. Before we get started, we want to draw your attention to the safe harbor statement included in today's press release and emphasize that information discussed on this call, including our guidance, is based on information as of today and contains forward-looking statements that involve risks, uncertainties, and assumptions, other than statements of historical fact could be deemed to be forward-looking. Forward-looking statements reflect our views as of today only. and accept as required by law, we undertake no obligation to update or revise these forward-looking statements. Please take a look at our filings with the SEC for a discussion of the factors that could cause our results to differ. We also want to point out that we present non-GAAP measures in addition to and not as a substitute for financial measures prepared in accordance with generally accepted accounting principles. Definitions of these non-GAAP financial measures, along with reconciliations to our GAAP financial measures, are included in our earnings release, which we've furnished with the SEC and is available on our website at investors.servicetitan.com. Unless otherwise stated, all references on this call to platform gross margin, total gross margin, operating income, operating margin, free cash flow, and related growth rates are on a non-GAAP basis. Finally, we've posted an updated investor presentation that can be found on the investor relations website at investors.servicetitan.com. along with a replay of this call. And with that, let me turn the call over to Ara. Ara?

Thank you, Jason, and thank you for joining us. Our customers are off to a strong start in fiscal year 2027. We continue to execute on our core multi-year growth sectors. We're delivering the agentic operating system to the trades, and we're improving our organizational velocity. During Q1, our focus on delivering customer ROI resulted in 25% year-over-year revenue growth, healthy efficiency, and record operating margins. As I spoke about last quarter, our vision since founding Service Titan has been to transform the lives of hardworking contractors by helping them grow revenue and increase margins. From day one, we imagined the world where technicians focused on serving customers in the field, owners focused on business outcomes, and service titan increasingly handled the operational complexity in between. I outlined the evolution of our platform and opportunity to build Max and the agentic operating system for the trades. Today, I'd like to share the story of EDS Air Conditioning and Plumbing, one of South Florida's premier HVAC and plumbing contractors, serving the residential and commercial service and construction markets for decades. They were among the first to adopt MAX, and EDS's business performance speaks for itself across virtually every aspect of the funnel. While the first quarter has previously been a slower quarter for EDS, they delivered striking improvements during Q1 2026 compared with Q1 2025. Year over year, call booking rates increased roughly 16 points. Close rate in the field increased more than nine points. Average ticket size increased more than 30%. And as a compounding result of these improvements, average revenue per technician increased more than 50%. These significant revenue outcomes with minimal incremental overhead are powered by agentic workflows across the platform that complement the work that is required to be touched by humans. Service Titans agents are generating leads, booking them into appointments, and helping technicians convert them into revenue at higher average tickets. Of all EDS jobs during Q1 of this year, nearly half were touched by the optimization engine. EDS founder Ed Sasso shared with me. We can now manage our jobs, our accounting and our overall costs without adding layers of people and our tradesmen and women are put in the best position to perform their best work every day without worrying about unnecessary clerical work. This improves job performance, job satisfaction and career development in a way we never thought possible. They have automated workflows that can create dramatic efficiency improvements and we're now able to significantly scale our business without adding additional overhead. All told, both productivity improved and technician count grew. EDS is using ServiceTitan Max to accelerate the capabilities of their best people and create even greater future growth opportunities with enhanced efficiencies across the business. Proof that Max doesn't just allow for improved operations, it compounds them. The best part, Ed Sasso told me, is that the technology gets better every single day. The power of Max is amplified beyond nearly a collection of underlying pro products because there are 25 agentic capabilities optimizing the platform to generate more leads and a higher conversion rate at higher average tickets, all while orchestrating the back office. During Q1, we introduced Speed to Lead, inbound call booking automation, auto inventory replenishment and invoice detection, among others that compound capabilities across the management, the back office and the field. The power that is unlocked with this platform means that what used to require a group of people manually coordinating an operation is now being orchestrated by the system itself, with humans and agents working together seamlessly, where each player does what they do best. This end-to-end orchestration gets worked on in the trades faster, more reliably, and more efficiently. We're leveraging this end-to-end platform and massive proprietary dataset alongside our expanding ecosystem, brand leadership, and distribution across more than 10,000 high-performing contractors to bring the magic of end-to-end automation to life for operators. And our internal leverage of AI tooling is allowing us to accelerate development velocity to create more value for customers faster than ever. We are well on our way to delivering the agentic operating system to the trades. I continue to be inspired watching Titans execute for our customers every day. And now let's hear more about our execution from my co-founder, Vahe.