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ServiceTitan Announces Fiscal Fourth Quarter and Full Year Fiscal 2025 Financial Results

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LOS ANGELES, March 13, 2025 (GLOBE NEWSWIRE) --  ServiceTitan, Inc. (NASDAQ: TTAN), the software pla...

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AI Summary

ServiceTitan's Q4 revenue grew 29% year-over-year to $209.3 million. Non-GAAP income from operations was $6.9 million, reversing a loss from last year. Net loss increased to $100.9 million, higher than the previous year's loss. Projected revenue for fiscal 2026 is expected to range from $895 million to $905 million. Company's cash balance improved significantly, reaching $441.8 million.

Sentiment Rationale

Despite the net loss, strong revenue growth and a positive outlook indicate potential for recovery. Historically, companies with strong revenues but initial losses have grown as they optimize operations and scale.

Trading Thesis

Growth trajectory and revenue expectations suggest long-term bullishness as business scales. Previous companies have seen stock appreciation post-recovery periods in growth spending.

Market-Moving

  • ServiceTitan's Q4 revenue grew 29% year-over-year to $209.3 million.
  • Non-GAAP income from operations was $6.9 million, reversing a loss from last year.
  • Net loss increased to $100.9 million, higher than the previous year's loss.

Key Facts

  • ServiceTitan's Q4 revenue grew 29% year-over-year to $209.3 million.
  • Non-GAAP income from operations was $6.9 million, reversing a loss from last year.
  • Net loss increased to $100.9 million, higher than the previous year's loss.
  • Projected revenue for fiscal 2026 is expected to range from $895 million to $905 million.
  • Company's cash balance improved significantly, reaching $441.8 million.

Companies Mentioned

  • NOW (NOW)
  • CRM (CRM)
  • ADBE (ADBE)

Earnings

Investors value revenue growth and operational improvements, even amidst losses, indicating a high likelihood of impacting stock price positively.

LOS ANGELES, March 13, 2025 (GLOBE NEWSWIRE) --  ServiceTitan, Inc. (NASDAQ: TTAN), the software platform that powers the trades, today announced financial results for the fiscal fourth quarter and full fiscal year ended January 31, 2025. “The beginning of the new public market era for the trades, for our customers, and for ServiceTitan is off to a good start,” said Ara Mahdessian, co-founder and CEO. “I am proud of the way Titans executed this quarter to cap off a transformative year for our business. We plan to carry this same focused execution into fiscal year 2026.” “Our goal and growth strategy is to become the operating system for the trades,” said Vahe Kuzoyan, co-founder and President. “Our core residential trades are performing well while our investments in roofing and commercial continue to deliver.” Fourth Quarter Fiscal 2025 Financial Highlights: Revenue: Total revenue increased 29% year-over-year to $209.3 million.Platform revenue increased 30% year-over-year to $200.1 million. Loss from Operations: GAAP loss from operations was ($99.9) million for the fourth quarter of fiscal 2025, compared to ($48.1) million in the fourth quarter of fiscal 2024.Non-GAAP income from operations was $6.9 million for the fourth quarter of fiscal 2025, compared to non-GAAP income from operations of $2.1 million for the fourth quarter of fiscal 2024¹. Net Loss: GAAP net loss was ($100.9) million for the fourth quarter of fiscal 2025, compared to ($51.4) million in the fourth quarter of fiscal 2024.Non-GAAP net income was $7.5 million for the fourth quarter of fiscal 2025, compared to non-GAAP net loss ($0.8) million for the fourth quarter of fiscal 2024¹. Full Year Fiscal 2025 Financial Highlights: Revenue: Total revenue increased 26% year-over-year to $771.9 million.Platform revenue increased 27% year-over-year to $739.5 million. Loss from Operations: GAAP loss from operations was ($230.0) million for fiscal 2025, compared to ($182.9) million for fiscal 2024.Non-GAAP income from operations was $25.2 million for fiscal 2025, compared to non-GAAP loss from operations of ($17.1) million for fiscal 2024¹. Net Loss: GAAP net loss was ($239.1) million for fiscal 2025, compared to ($195.1) million for fiscal 2024.Non-GAAP net income was $16.5 million for fiscal 2025, compared to non-GAAP net loss of ($27.4) million for fiscal 2024¹. Cash: Cash and cash equivalents totaled $441.8 million as of January 31, 2025.Net cash generated by operating activities was $15.4 million for the fourth quarter of fiscal 2025, compared to $5.9 million in the fourth quarter of fiscal 2024. Net cash generated by operating activities was $37.1 million for fiscal 2025, compared to net cash used of ($39.7) million for fiscal 2024.Non-GAAP free cash flow was $10.8 million for the fourth quarter of fiscal 2025, compared to ($2.2) million for the fourth quarter of fiscal 2024¹. Non-GAAP free cash flow was $15.5 million for fiscal 2025, compared to ($84.3) million for fiscal 2024¹. Business and Operational Highlights: Net dollar retention was greater than 110% for the fourth quarter of fiscal 2025.Gross dollar retention was greater than 95% for fiscal 2025.Gross Transaction Volume was $17.0 billion for the fourth quarter of fiscal 2025, up 26% year-over-year.Gross Transaction Volume was $68.5 billion for fiscal 2025, up 23% year-over-year.Total active customers were ~9,500 as of January 31, 2025, up 18% year-over-year. _________________________ 1 This press release uses non-GAAP financial measures that adjust GAAP financial measures for the impact of various items. See the section titled “Non-GAAP Financial Measures” and the tables entitled “GAAP to Non-GAAP Reconciliation” below for additional information. Fiscal First Quarter and Fiscal Year 2026 Financial Outlook: For the first quarter of fiscal 2026, the Company currently expects: Total revenue in the range of $207 million to $209 million.Non-GAAP income from operations in the range of $12 million to $13 million².  For the full year fiscal 2026, the Company currently expects: Total revenue in the range of $895 million to $905 million. Non-GAAP income from operations in the range of $48 million to $53 million².  Conference Call Information:The financial results and business highlights will be discussed on a conference call and webcast scheduled at 2:00 p.m. Pacific Time (5:00 p.m. Eastern Time) on Thursday, March 13, 2025. Online registration for this event conference call can be found here. The live webcast of the conference call can be accessed from ServiceTitan’s investor relations website at http://investors.servicetitan.com. Following completion of the events, a webcast replay will also be available at http://investors.servicetitan.com for 12 months. About ServiceTitan ServiceTitan is the software platform that powers trades businesses. The company’s cloud-based, end-to-end solution gives contractors the tools they need to run and grow their business, manage their back office, and provide a stellar customer experience. By bringing an integrated SaaS platform to an industry historically underserved by technology, ServiceTitan is equipping tradespeople with the technology they need to keep the world running. Forward Looking Statements This press release contains forward-looking statements within the meaning of the Securities Act of 1933, as amended, the Securities Exchange Act of 1934, as amended, and the Private Securities Litigation Reform Act of 1995. All statements other than statements of historical facts contained in this press release may be forward-looking statements. In some cases, you can identify forward-looking statements because they contain words such as “anticipate,” “believe,” “contemplate,” “continue,” “could,” “estimate,” “expect,” “intend,” “may,” “plan,” “potential” “predict,” “project,” “should,” “target,” or “will,” or the negative of these words or other similar terms or expressions that concern ServiceTitan’s expectations, strategy, plans or intentions. Forward-looking statements in this release include, but are not limited to, statements regarding ServiceTitan’s financial outlook for total revenue and non-GAAP income from operations for the first quarter of fiscal year 2026 ending April 30, 2025 and the full fiscal year ending January 31, 2026. ServiceTitan’s expectations and beliefs regarding these matters may not materialize, and actual results in future periods are subject to risks and uncertainties that could cause actual results to differ materially from those projected, including those more fully described under the caption “Risk Factors” in our Prospectus dated December 11, 2024, filed with the SEC on December 12, 2024 and our Quarterly Report on Form 10-Q for the fiscal third quarter ended October 31, 2024, which should be read in conjunction with this press release and the financial results included herein. Additional information will be set forth in our Annual Report on Form 10-K for the fiscal year ended January 31, 2025. The forward-looking statements in this release are based on information available to ServiceTitan as of the date hereof, and ServiceTitan undertakes no obligation to update any forward-looking statements, except as required by law. _________________________2 ServiceTitan is not able, at this time, to provide an outlook for GAAP income (loss) from operations or a reconciliation of expected non-GAAP income from operations to GAAP income (loss) from operations for the first quarter of fiscal 2026 or for the full fiscal year 2026 because of the difficulty of estimating certain items excluded from non-GAAP income from operations that cannot be reasonably calculated or predicted without unreasonable efforts. For example, charges related to stock-based compensation expense require additional inputs, such as the number and value of awards granted, that are not currently ascertainable. Press ContactMax WertheimerServiceTitan, Inc.press@servicetitan.com Investor ContactJason RechelServiceTitan, Inc.investors@servicetitan.com © 2025 ServiceTitan. All rights reserved. ServiceTitan, the ServiceTitan logo, and all ServiceTitan product and service names mentioned herein are registered trademarks or unregistered trademarks of ServiceTitan, Inc. in the United States and other countries. Other brand names and marks mentioned herein are for identification purposes only and may be the trademarks of their respective holder(s).  ServiceTitan, Inc.Consolidated Statements of Operations(in thousands, except share and per share data)(unaudited)   Three Months Ended January 31,  Fiscal   2025  2024  2025  2024 Revenue:            Platform $200,074  $153,962  $739,486  $581,751 Professional services and other  9,207   7,802   32,392   32,590 Total revenue  209,281   161,764   771,878   614,341 Cost of revenue:            Platform  53,785   43,827   202,982   169,766 Professional services and other  17,320   17,725   67,969   67,945 Total cost of revenue  71,105   61,552   270,951   237,711 Gross profit  138,176   100,212   500,927   376,630 Operating expenses:            Sales and marketing  69,735   56,689   253,349   219,994 Research and development  76,057   54,420   263,054   203,534 General and administrative  92,250   37,194   214,476   135,966 Total operating expenses  238,042   148,303   730,879   559,494 Loss from operations  (99,866)  (48,091)  (229,952)  (182,864)Other expense, net            Interest expense  (3,193)  (4,233)  (15,517)  (16,436)Interest income  3,637   1,972   8,765   7,067 Other income (expense), net  (467)  133   (72)  1,224 Total other expense, net  (23)  (2,128)  (6,824)  (8,145)Loss before income taxes  (99,889)  (50,219)  (236,776)  (191,009)Provision for income taxes  1,054   1,193   2,318   4,136 Net loss  (100,943)  (51,412)  (239,094)  (195,145)Adjustments to net loss attributable to common stockholders  (79,023)  (12,483)  (120,631)  (45,873)Net loss attributable to common stockholders $(179,966) $(63,895) $(359,725) $(241,018)Net loss per share, basic and diluted $(2.80) $(1.88) $(8.53) $(7.24)Weighted-average shares used in computing net loss per share,    basic and diluted  64,361,825   33,932,005   42,148,552   33,267,131                           Disaggregated Revenue              Three Months Ended January 31,  Fiscal   2025  2024  2025  2024 Subscription $156,674  $119,398  $565,687  $441,484 Usage  43,400   34,564   173,799   140,267 Platform revenue  200,074   153,962   739,486   581,751 Professional services and other  9,207   7,802   32,392   32,590 Total revenue $209,281  $161,764  $771,878  $614,341    ServiceTitan, Inc.Consolidated Balance Sheets(in thousands, except share and per share data)(unaudited)   As of January 31,   2025  2024 Assets      Current assets:      Cash and cash equivalents $441,802  $146,710 Restricted cash  711   1,403 Accounts receivable, net of allowance of $4,698 and $3,762 as of January 31, 2025 and    January 31, 2024, respectively  44,469   28,046 Deferred contract costs, current  11,554   9,451 Contract assets  45,926   39,329 Prepaid expenses  24,791   22,652 Other current assets  3,513   1,640 Total current assets  572,766   249,231 Restricted cash, noncurrent  333   750 Deferred contract costs, noncurrent  10,608   8,399 Property and equipment, net  56,667   97,170 Operating lease right-of-use assets  24,025   43,270 Internal-use software, net  35,775   29,300 Intangible assets, net  214,952   251,347 Goodwill  845,836   830,872 Other assets  7,686   7,327 Total assets $1,768,648  $1,517,666 Liabilities, Non-Convertible Preferred Stock, Redeemable Convertible Preferred Stock and    Stockholders' Deficit      Current liabilities:      Accounts payable and other accrued expenses $40,182  $45,293 Accrued personnel related expenses  80,160   55,321 Deferred revenue, current  16,803   11,160 Operating lease liabilities, current  12,996   11,005 Short-term debt  1,073   1,800 Other current liabilities  1,902   688 Total current liabilities  153,116   125,267 Operating lease liabilities, noncurrent  47,327   58,576 Long-term debt, net  104,014   174,578 Other noncurrent liabilities  9,607   7,684 Total liabilities  314,064   366,105 Commitments and contingencies      Non-Convertible Preferred Stock      Non-convertible preferred stock, par value $0.001, 0 and 250,000 authorized, issued and outstanding    as of January 31, 2025 and 2024, respectively.  —   233,546 Redeemable Convertible Preferred Stock      Redeemable convertible preferred stock, par value $0.001, 0 and 42,465,855 shares authorized, issued    and outstanding as of January 31, 2025 and 2024, respectively.  —   1,395,878 Stockholders' Equity (Deficit)      Preferred stock, par value $0.001, 100,000,000 and 0 shares authorized as of January 31, 2025    and 2024, respectively. 0 shares issued and outstanding as of January 31, 2025 and 2024  —   — Class A common stock, par value $0.001, 1,000,000,000 and 92,630,000 shares authorized as of    January 31, 2025 and 2024, respectively. 76,644,240 shares and 34,185,388 shares    issued and outstanding as of January 31, 2025 and 2024, respectively  77   34 Class B common stock, par value $0.001, 100,000,000 and 0 shares authorized as of    January 31, 2025 and 2024, respectively. 13,404,097 shares and 0 shares    issued and outstanding as of January 31, 2025 and 2024, respectively  13   — Class C common stock, par value $0.001, 100,000,000 and 0 shares authorized as of    January 31, 2025 and 2024, respectively. 0 shares    issued and outstanding as of January 31, 2025 and 2024  —   — Additional paid-in capital  2,560,224   388,739 Accumulated deficit  (1,105,730)  (866,636)Total stockholders' equity (deficit)  1,454,584   (477,863)Total liabilities, non-convertible preferred stock, redeemable convertible preferred    stock and stockholders' equity (deficit) $1,768,648  $1,517,666    ServiceTitan, Inc.Consolidated Statements of Cash Flows(in thousands)(unaudited)   Three Months Ended January 31,  Fiscal   2025  2024  2025  2024 Cash flows provided by (used in) operating activities            Net loss $(100,943) $(51,412) $(239,094) $(195,145)Adjustments to reconcile net loss to net cash provided by (used in) operating    activities            Depreciation and amortization expense  20,385   22,992   80,221   80,989 Amortization of deferred contract costs  3,107   2,537   11,471   9,402 Noncash operating lease expense  1,394   1,728   6,340   7,612 Stock-based compensation expense  94,679   30,417   163,729   102,454 Loss on impairment and disposal of assets  772   4,819   39,358   5,423 Change in valuation of contingent consideration  —   (200)  (135)  (1,100)Deferred income taxes  (72)  179   1,182   1,826 Amortization of debt issuance costs  113   48   327   141 Gain on sale of intangibles  —   (1,224)  —   (1,224)Provision for credit losses  872   1,013   3,688   2,649 Changes in operating assets and liabilities, net of effect of business acquisition:            Accounts receivable  (4,123)  (1,443)  (17,686)  (7,789)Prepaid expenses and other current assets  (6,123)  (4,530)  (2,863)  (3,351)Deferred contract costs  (5,270)  (3,525)  (15,781)  (12,595)Contract assets  (1,962)  (2,563)  (6,597)  (11,840)Other assets  3,193   (1,203)  2,661   (1,889)Accounts payable and other accrued expenses  (4,546)  707   (8,980)  (2,768)Accrued personnel-related expenses  14,046   12,419   23,165   (962)Operating lease liabilities  (1,588)  (3,185)  (9,418)  (9,247)Other liabilities  712   (1,090)  2,133   (2,657)Deferred revenue  781   (622)  3,332   369 Net cash provided by (used in) operating activities  15,427   5,862   37,053   (39,702)Cash flows provided by (used in) investing activities            Capitalized internal-use software  (3,638)  (2,912)  (17,799)  (15,743)Purchase of property and equipment  (997)  (4,953)  (3,800)  (28,354)Cash received for sale of intangible assets  —   2,739   —   2,739 Deposits for property and equipment  —   (174)  —   (518)Repayment of loan to employee  —   —   —   1,529 Acquisition of business, net of cash acquired  —   —   (1,184)  — Net cash used in investing activities  (4,635)  (5,300)  (22,783)  (40,347)Cash flows provided by (used in) financing activities            Payment of contingent consideration  —   (225)  (300)  (835)Proceeds from exercise of stock options  2,348   1,659   6,655   9,703 Proceeds from issuance of Series H-1 redeemable convertible preferred stock  —   —   —   34,000 Payment of Series H-1 convertible preferred stock issuance costs  —   —   —   (409)Proceeds from issuance of common stock in initial public offering, net of underwriting costs  682,952   —   682,952   — Repayment of non-convertible preferred stock  (310,562)  —   (310,562)  — Payment of debt arrangements  (70,268)  (450)  (71,618)  (1,350)Costs associated with initial public offering  (7,502)  (334)  (8,451)  (334)Shares repurchased for tax withholding for the settlement of restricted stock units  —   (4,514)  (18,963)  (16,506)Net cash provided by financing activities  296,968   (3,864)  279,713   24,269 Net increase (decrease) in cash, cash equivalents, and restricted cash  307,760   (3,302)  293,983   (55,780)Cash, cash equivalents, and restricted cash            Beginning of period  135,086   152,165   148,863   204,643 End of period $442,846  $148,863  $442,846  $148,863   Statement Regarding Use of Non-GAAP Financial Measures In addition to our results prepared in accordance with GAAP, we believe non-GAAP gross profit and non-GAAP gross margin, in total and for platform, and professional services and other, non-GAAP sales and marketing expense, non-GAAP research and development expense, non-GAAP general and administrative expense, non-GAAP income (loss) from operations, non-GAAP operating margin, and non-GAAP net income (loss) are useful in evaluating our operating performance. These measures, however, have certain limitations in that they reflect the exercise of judgment by our management about which expenses are excluded or included and do not include the impact of certain expenses that are reflected in our consolidated statement of operations that are necessary to run our business. These non-GAAP financial measures should be considered in addition to, not as a substitute for or in isolation from, our financial results determined in accordance with GAAP. We caution investors that amounts presented in accordance with our definition of non-GAAP gross profit, non-GAAP gross margin, non-GAAP sales and marketing expense, non-GAAP research and development expense, non-GAAP general and administrative expense, non-GAAP income (loss) from operations, non-GAAP operating margin and non-GAAP net income (loss) may not be comparable to similar measures disclosed by other companies because not all companies and analysts calculate these measures in the same manner. For the reasons set forth below, we believe that excluding the following items provides information that is helpful in understanding our operating results, evaluating our future prospects, comparing our financial results across accounting periods, and comparing our financial results to our peers, many of which provide similar non-GAAP financial measures.   Stock-based compensation expense and related employer payroll taxes. We exclude stock-based compensation expense, including the performance-based RSU’s granted to our Co-Founders, and related employer payroll taxes to allow investors to make more meaningful comparisons of our performance between periods and to facilitate a comparison of our performance to those of other peer companies. Stock-based compensation may vary between periods due to various factors unrelated to our core performance, including as a result of the assumptions used in the valuation methodologies, timing and amount of grants and other factors. We exclude employer payroll taxes because the amounts vary based on timing and settlement or vesting of awards unrelated to our core operating performance. Moreover, stock-based compensation expense is a non-cash expense that we exclude from our internal management reporting processes and when assessing our actual performance, budgeting, planning, and forecasting future periods.Amortization of acquired intangible assets. We incur amortization expense for acquired intangible assets in connection with acquisitions of certain businesses and technologies. Amortization of acquired intangible assets is a non-cash expense that is significantly affected by the timing and size of acquisitions, and the inherent subjective nature of purchase price allocations. Because these costs have already been incurred, we exclude the amortization expense from our internal management reporting processes. We exclude these charges when assessing our actual performance and when budgeting, planning, and forecasting future periods. Investors should note that the use of intangible assets contributed to our revenues earned during the periods presented and will contribute to our future period revenues as well.Restructuring charges. To better align our strategic priorities with our investments, we implemented workforce reductions in fiscal 2024 and fiscal 2025. In connection with these reductions, we incurred employee-related expenses including severance and other termination benefits. We excluded these charges when assessing our actual performance and when budgeting, planning and forecasting future periods.Loss on operating lease assets. In fiscal 2024 and fiscal 2025, we incurred impairments on certain right-of-use assets and other long-lived assets. We believe that it is useful to exclude these charges when assessing the level of various operating expenses and resource allocations when budgeting, planning and forecasting future periods. In addition, we believe excluding such costs enhances the comparability between periods.Acquisition-related items. We have incurred costs related to acquisitions, including legal, third-party valuation and due diligence, insurance costs, and one-time retention bonuses for employees of acquired companies. In addition, we periodically record the change to the fair value of contingent consideration related to past acquisitions. We exclude these items when assessing our actual performance and when budgeting, planning and forecasting future periods. We believe excluding these items allows investors to make meaningful comparisons between our core operating results and those of other peer companies. Free Cash Flow We define free cash flow as net cash provided by (used in) operating activities less cash used for investing activities for capitalized internal use software and less cash paid for purchases of, and deposits for, property and equipment. We believe that free cash flow is a meaningful indicator of our sources of liquidity and capital requirements that provides information to management and investors in evaluating the cash flow trends of our business. Once our business needs and obligations are met, cash can be used to maintain a strong balance sheet and invest in future growth. Free cash flow has limitations as an analytical tool and should not be considered in isolation or as a substitute for analysis of our results as reported under GAAP. Other companies may calculate free cash flow or similarly titled non-GAAP measures differently, which could reduce the usefulness of free cash flow as a tool for comparison. In addition, free cash flow does not reflect mandatory debt service and other non-discretionary expenditures that are required to be made under contractual commitments and does not represent the total increase or decrease in our cash balance for any given period.  ServiceTitan, Inc.GAAP to Non-GAAP Reconciliations(unaudited)Non-GAAP Gross Profit and Non-GAAP Gross Margin   Platform  Professional Services and Other  Total   Three Months Ended January 31,  Three Months Ended January 31,  Three Months Ended January 31,   2025  2024  2025  2024  2025  2024   (in thousands) GAAP gross profit $146,289  $110,135  $(8,113) $(9,923) $138,176  $100,212 Stock-based compensation expense    and related employer payroll taxes  1,570   1,333   1,133   988   2,703   2,321 Amortization of acquired intangible    assets  5,533   5,338   334   3,032   5,867   8,370 Restructuring charges  —   57   —   212   —   269 Loss on operating lease assets  102   798   52   347   154   1,145 Non-GAAP gross profit $153,494  $117,661  $(6,594) $(5,344) $146,900  $112,317     Platform  Professional Services and Other  Total   Three Months Ended January 31,  Three Months Ended January 31,  Three Months Ended January 31,   2025  2024  2025  2024  2025  2024 GAAP gross margin  73%  72%  (88)%  (127)%  66%  62%Stock-based compensation expense    and related employer payroll taxes  1%  1%  12%  13%  1%  1%Amortization of acquired intangible    assets  3%  3%  4%  39%  3%  5%Restructuring charges  0%  0%  0%  3%  0%  0%Loss on operating lease assets  0%  1%  1%  4%  0%  1%Non-GAAP gross margin  77%  76%  (72)%  (68)%  70%  69%    Platform  Professional Services and Other  Total   Fiscal  Fiscal  Fiscal   2025  2024  2025  2024  2025  2024   (in thousands) GAAP gross profit $536,504  $411,985  $(35,577) $(35,355) $500,927  $376,630 Stock-based compensation expense    and related employer payroll taxes  5,731   5,694   4,298   4,424   10,029   10,118 Amortization of acquired intangible    assets  21,902   21,844   1,786   4,484   23,688   26,328 Restructuring charges  386   1,217   129   2,181   515   3,398 Loss on operating lease assets  5,492   798   2,608   347   8,100   1,145 Non-GAAP gross profit $570,015  $441,538  $(26,756) $(23,919) $543,259  $417,619     Platform  Professional Services and Other  Total   Fiscal  Fiscal  Fiscal   2025  2024  2025  2024  2025  2024 GAAP gross margin  73%  71%  (110)%  (108)%  65%  61%Stock-based compensation expense    and related employer payroll taxes  1%  1%  13%  14%  1%  2%Amortization of acquired intangible    assets  3%  4%  6%  14%  3%  4%Restructuring charges  0%  0%  0%  7%  0%  1%Loss on operating lease assets  1%  0%  8%  1%  1%  0%Non-GAAP gross margin  77%  76%  (83)%  (73)%  70%  68%  Non-GAAP Sales and Marketing Expense   Three Months Ended January 31,  Fiscal   2025  2024  2025  2024   (in thousands) GAAP sales and marketing expense $69,735  $56,689  $253,349  $219,994 Stock-based compensation expense    and related employer payroll taxes  (12,854)  (7,028)  (24,630)  (21,333)Amortization of acquired intangible assets  (5,575)  (5,456)  (22,237)  (22,489)Restructuring charges  —   (27)  (292)  (1,674)Loss on operating lease assets  (123)  (980)  (7,023)  (980)Non-GAAP sales and marketing expense $51,183  $43,198  $199,167  $173,518   Non-GAAP Research and Development Expense   Three Months Ended January 31,  Fiscal   2025  2024  2025  2024   (in thousands) GAAP research and development expense $76,057  $54,420  $263,054  $203,534 Stock-based compensation expense    and related employer payroll taxes  (18,993)  (9,385)  (47,053)  (34,408)Acquisition-related items  —   —   (250)  — Restructuring charges  —   (128)  (991)  (1,546)Loss on operating lease assets  (126)  (1,007)  (6,837)  (1,007)Non-GAAP research and development expense $56,938  $43,900  $207,923  $166,573   Non-GAAP General and Administrative Expense   Three Months Ended January 31,  Fiscal   2025  2024  2025  2024   (in thousands) GAAP general and administrative expense $92,250  $37,194  $214,476  $135,966 Stock-based compensation expense    and related employer payroll taxes  (45,149)  (12,460)  (68,749)  (39,173)Stock-based compensation expense -    Co-Founder performance based RSUs  (14,980)  —   (14,980)  — Acquisition-related items  —   199   (1,933)  1,092 Restructuring charges  —   (115)  (698)  (1,564)Loss on operating lease assets  (231)  (1,725)  (17,189)  (1,725)Non-GAAP general and administrative expense $31,890  $23,093  $110,927  $94,596   Non-GAAP Income (Loss) from Operations and Non-GAAP Operating Margin   Three Months Ended January 31,  Fiscal   2025  2024  2025  2024   (in thousands) GAAP loss from operations $(99,866) $(48,091) $(229,952) $(182,864)Stock-based compensation expense and    related employer payroll taxes  79,699   31,194   150,461   105,032 Stock-based compensation expense -    Co-Founders performance based RSUs  14,980   —   14,980   — Amortization of acquired intangible assets  11,442   13,826   45,925   48,817 Restructuring charges  —   539   2,496   8,182 Acquisition-related items  —   (199)  2,183   (1,092)Loss on operating lease assets  634   4,857   39,149   4,857 Non-GAAP income (loss) from operations $6,889  $2,126  $25,242  $(17,068)    Three Months Ended January 31,  Fiscal   2025  2024  2025  2024 GAAP operating margin  (48)%  (30)%  (30)%  (30)%Stock-based compensation expense and    related employer payroll taxes  38%  19%  19%  17%Stock-based compensation expense -    Co-Founders performance based RSUs  7%  0%  2%  0%Amortization of acquired intangible assets  5%  9%  6%  8%Restructuring charges  0%  0%  0%  1%Acquisition-related items  0%  0%  0%  0%Loss on operating lease assets  0%  3%  5%  1%Non-GAAP operating margin  3%  1%  3%  (3)%  Non-GAAP Net Income (Loss)   Three Months Ended January 31,  Fiscal   2025  2024  2025  2024   (in thousands) GAAP net loss $(100,943) $(51,412) $(239,094) $(195,145)Stock-based compensation expense and    related employer payroll taxes  79,699   31,194   150,461   105,032 Stock-based compensation expense -    Co-Founders performance based RSUs  14,980   —   14,980   — Amortization of acquired intangible assets  11,442   13,826   45,925   48,817 Restructuring charges  —   539   2,496   8,182 Acquisition-related items  —   (199)  2,183   (1,092)Loss on operating lease assets  634   4,857   39,149   4,857 Income tax effects related to the above adjustments (1)  1,646   408   439   1,915 Non-GAAP net income (loss) $7,458  $(787) $16,539  $(27,434)              (1) This amount represents adjustments for the current and deferred income tax effects on non-GAAP net income (loss) for the impact of the non-GAAP adjustments above. Free Cash Flow   Three Months Ended January 31,  Fiscal   2025  2024  2025  2024   (in thousands) Net cash provided by (used in) operating activities $15,427  $5,862  $37,053  $(39,702)Capitalized internal-use software  (3,638)  (2,912)  (17,799)  (15,743)Purchase of property and equipment  (997)  (4,953)  (3,800)  (28,354)Deposits for property and equipment  —   (174)  —   (518)Non-GAAP free cash flow $10,792  $(2,177) $15,454  $(84,317)

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