ServiceTitan Inc

ServiceTitan, the dominant vertical software operating system serving residential and commercial home services trades, is viewed as AI-resilient. Its customers, skilled trade businesses, are largely insulated from AI-driven labor disruption. With over $80 billion in transaction volume, ServiceTitan is well positioned to enable AI-driven automation on its platform. The premium Max tier, with fully ramped customers utilizing AI, is expected to approximately double monthly subscription revenue.

ServiceTitan dominates its niche of residential and commercial contractors with low-cost software that provides essential services, thus making it very sticky and difficult to displace. We believe both of these stocks are being unfairly punished and over time the results of each business will prove their resiliency to the AI threat.

We initiated a position in ServiceTitan (TTAN), a fast-growing software company modernizing the trades industry. ServiceTitan helps plumbers, electricians, and HVAC technicians run their businesses more efficiently. There is a huge need to professionalize the trades. With its brand recognition and first-mover advantage, ServiceTitan is leading the charge. Rather than being displaced by AI, the company is already leveraging it to automate scheduling, billing, and customer service, driving significant productivity gains.

We are encouraged that ServiceTitan will compound growth over many years as they become the operating system of record for plumber, electricians, and other trade industries.

We initiated a position in ServiceTitan (TTAN), the leading cloud-based software platform for the trades (e.g., HVAC, plumbing). TTAN has strong SaaS metrics, a large market opportunity, and lower AI displacement risk. Its valuation is reasonable, with defensibility justifying a premium among public SaaS peers. We entered post the June unlock-driven selloff.