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 Contact
Max Wertheimer
ServiceTitan, Inc.
[email protected]

Investor Contact
Jason Rechel
ServiceTitan, Inc.
[email protected]

© 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 )