ServiceTitan Reaches $1.08B Run Rate at 25% Growth in Q1 2027

ServiceTitan crossed a $1B revenue run rate in fiscal Q1 2027 by delivering $268.8M in quarterly revenue, up 25% year over year, according to SaaStr. The company sells an end-to-end operating system to HVAC, plumbing, electrical, roofing, and garage door contractors.

Growth Clears Rule of 40 at Scale

Revenue reached $268.8M, up 25% from the prior year, placing the company on a roughly $1.08B annualized run rate. The company provided FY27 revenue guidance of $1.13B to $1.14B. Non-GAAP operating margin expanded to 15.2% from 7.5% a year earlier, producing a Rule of 40 score above 40. The stock traded near $78 per share for a market cap of approximately $7.5B, or 6x-7x revenue.

Usage Revenue Outpaces Subscriptions

Gross transaction volume processed on the platform totaled $21.7B in the quarter, up 23% year over year and annualizing to roughly $87B. Subscription revenue reached $202.0M, up 24%, while usage revenue reached $58.5M, up 29%. Usage now accounts for 22% of platform revenue.

Margin Inflection Driven by Sales Efficiency

Non-GAAP operating income more than doubled to $40.8M. GAAP sales and marketing spend rose only 5.6% while revenue grew 25%. GAAP operating margin improved from -23.0% to -9.6%.

R&D Reinvestment and NRR

R&D spend increased 27% to $88M, or 33% of revenue. The company more than doubled the number of locations using its Max product in Q1 and guided to another doubling in Q2. Net dollar retention remained above 110%, unchanged from a year earlier, according to SaaStr.