ServiceTitan, Inc. (TTAN): A Bull Case Theory

We came across a bullish thesis on ServiceTitan, Inc. on FJ Research’s Substack. In this article, we will summarize the bulls’ thesis on TTAN. ServiceTitan, Inc.’s share was trading at $107.23 as of August 29^th. TTAN’s forward P/E was 212.77 according to Yahoo Finance.

ServiceTitan (TTAN) represents a compelling long-term investment in the trades-focused software space, offering significant asymmetric upside. Founded by Armenian immigrants Ara Mahdessian and Vahe Kuzoyan, the company was built out of firsthand experience with the inefficiencies of small service businesses, giving it a rare founder-market fit. ServiceTitan has evolved from a small tool for local contractors into a vertical SaaS leader, becoming the central operating system for thousands of service companies. Its software simplifies dispatch, billing, scheduling, and customer communication, creating deep stickiness, recurring revenue, and pricing power. The company’s credibility is reinforced by backing from top-tier investors, including Sequoia Capital, Iconiq Capital, Bessemer, Battery Ventures, TPG, and Index Ventures, signaling confidence in ServiceTitan as a category-defining platform.

Having gone public in December 2024, ServiceTitan entered the market with a solid growth trajectory, over 90 million shares outstanding, a clean balance sheet, and manageable debt. Revenue has already surpassed $200 million quarterly, growing over 25% year-over-year, with gross transaction volume approaching $20 billion annually. The recurring subscription model remains robust, net dollar retention exceeds 110%, and customer acquisition costs are recovered in under two years. Margins are improving, with a target of 25% long-term operating margins as the company leverages scale.

The market opportunity is substantial, with the trades industry representing over $1 trillion in economic activity, an immediate addressable market of $13 billion in software spend, and a broader opportunity exceeding $30 billion. Penetration of modern software is low, creating a runway for expansion, while revenue per customer can potentially double through deeper module adoption. Free from regulatory constraints, ServiceTitan’s growth depends primarily on execution, positioning it to potentially reach a $100 billion market capitalization over the next decade. The combination of massive market opportunity, high retention, strong margins, and founder authenticity makes ServiceTitan a rare, category-defining investment with exceptional long-term upside.

Previously we covered a bullish thesis on Braze, Inc. (BRZE) by Elliot in May 2025, which highlighted the company’s real-time, cross-channel customer engagement platform and strong enterprise adoption. The company’s stock price has depreciated approximately by 12.64% since our coverage due to macro pressures. The long-term thesis still stands as BRZE continues international expansion and deepening customer penetration. ServiceTitan, Inc. (TTAN) shares a similar vertical SaaS focus but emphasizes the trades industry and founder-market fit.

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Disclosure: None.