Latest news with #operatingmargin
Yahoo
a day ago
- Business
- Yahoo
ServiceTitan Inc (TTAN) Q1 2026 Earnings Call Highlights: Record Revenue Growth and Strategic ...
Gross Transaction Volume (GTV): $17.7 billion, up 22% year over year. Total Revenue: $215.7 million, up 27% year over year. Subscription Revenue: $162.7 million, up 29% year over year. Usage Revenue: $45.3 million, up 22% year over year. Platform Revenue: $208 million, up 27% year over year. Professional Service Revenue: $7.7 million. Net Dollar Retention: Greater than 110% for the quarter. Platform Gross Margin: 79.7%, an improvement of over 300 basis points year over year. Total Gross Margin: 73.6%, up 390 basis points year over year. Operating Income: $16.2 million, with a record operating margin of 7.5%, an improvement of 560 basis points year over year. Free Cash Flow: Negative $22.3 million, better than negative $24.6 million for the prior-year first quarter. Q2 Revenue Guidance: $228 million to $230 million. Q2 Operating Income Guidance: $17 million to $18 million. Full Year 2026 Revenue Guidance: $910 million to $920 million. Full Year 2026 Operating Income Guidance: $54 million to $59 million. Release Date: June 05, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. ServiceTitan Inc (NASDAQ:TTAN) reported a 29% year-over-year growth in subscription revenue and a 27% increase in total revenue. The company achieved record operating margins, improving by 560 basis points year-over-year. ServiceTitan Inc (NASDAQ:TTAN) successfully launched several large strategic accounts, both residential and commercial, during the quarter. The company is seeing strong adoption of its Pro products, which are contributing significantly to subscription revenue growth. ServiceTitan Inc (NASDAQ:TTAN) is making significant progress in expanding its enterprise capabilities and entering new markets, such as commercial and roofing. ServiceTitan Inc (NASDAQ:TTAN) reported a negative free cash flow of $22.3 million for the quarter. The company faces potential risks from economic uncertainties, including tariffs and supply chain inflation, which could impact customer growth. There is a dependency on weather patterns for Q2 performance, which introduces variability in revenue outcomes. ServiceTitan Inc (NASDAQ:TTAN) is still in the early stages of penetrating the commercial market, indicating a long path to full market capture. The company has to manage the timing of expenses carefully, as Q1 expenses were more favorable than in prior years, which may not be sustainable. Q: How might tariffs impact ServiceTitan's business, particularly in terms of equipment servicing opportunities and transaction volumes? A: Ara Mahdessian, CEO, explained that while tariffs could lead to supply chain inflation, ServiceTitan's customers have historically managed to pass through rising costs. The company remains prudent in forecasting Gross Transaction Volume (GTV) due to macroeconomic uncertainties. Q: Can you elaborate on the stacking S-curve strategy and its role in driving growth? A: Vahe Kuzoyan, President, emphasized the company's focus on enterprise, commercial, Pro products, and roofing as the primary areas of growth. While there are additional opportunities, the current focus remains on these key areas to drive durable growth. Q: What seasonal trends does ServiceTitan typically observe in the first half of the year, and how do Pro products contribute to growth? A: Dave Sherry, CFO, noted that Q2 is seasonally strong due to trades like HVAC and landscaping, making it sensitive to weather. Pro products are the fastest-growing segment, significantly contributing to subscription revenue growth. Q: What progress has ServiceTitan made in the commercial sector, and what is the current penetration rate? A: Ara Mahdessian highlighted successful commercial go-lives and ongoing development of project management capabilities. Vahe Kuzoyan added that the company is still in the early stages of penetrating the commercial market, with significant opportunities ahead. Q: How does ServiceTitan approach entering new trades, and are there opportunities beyond the current focus areas? A: Vahe Kuzoyan stated that while there are broader verticals that could use ServiceTitan, the company prioritizes focused areas like enterprise and commercial. Opportunistic deals are considered if there's a high degree of conviction in their success. Q: How does ServiceTitan plan to leverage AI and digital agents to drive efficiencies for customers? A: Vahe Kuzoyan explained that AI is integrated across the platform to automate tasks and enhance productivity, particularly in back-office operations and fieldwork, providing a competitive advantage. Q: What impact do home equity loan applications have on ServiceTitan's business, and is there potential for larger projects? A: Vahe Kuzoyan noted that increased home equity loan applications could drive more home projects, but the magnitude of impact is uncertain at this point. Q: What factors contributed to the strong gross margin performance in Q1, and what can be expected going forward? A: Dave Sherry attributed the gross margin improvement to scale and product selection, with a significant portion due to customer success management reclassification. Margins are expected to remain stable throughout the year. For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus.
Yahoo
28-05-2025
- Business
- Yahoo
Okta Inc (OKTA) Q1 2026 Earnings Call Highlights: Strong Profitability Amid Cautious Outlook
Revenue Growth (Q2 FY26): Expected growth of 10%. Current RPO Growth (Q2 FY26): Expected growth of 10% to 11%. Non-GAAP Operating Margin (Q2 FY26): Expected at 26%. Free Cash Flow Margin (Q2 FY26): Expected at approximately 19%. Revenue Growth (FY26): Expected growth of 9% to 10%. Non-GAAP Operating Margin (FY26): Expected at 25%. Free Cash Flow Margin (FY26): Expected at approximately 27%. Warning! GuruFocus has detected 6 Warning Sign with OKTA. Release Date: May 27, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Okta Inc (NASDAQ:OKTA) reported strong financial performance in Q1 FY26, with record operating profitability and profit margin. The company experienced significant growth in its governance portfolio, with products like Okta Identity Governance and lifecycle management showing substantial adoption. Okta Inc (NASDAQ:OKTA) saw a nearly 400% increase in workflow executions over the past three years, indicating strong integration into customer IT infrastructures. The company is making strides in innovation, particularly with new products like Identity Security Posture Management and Okta Privileged Access, which address evolving cyber threats. Okta Inc (NASDAQ:OKTA) is well-positioned in the US public sector, with strong performance in Q1 and strategic investments yielding positive results. Okta Inc (NASDAQ:OKTA) has introduced additional conservatism in its guidance due to macroeconomic uncertainties, which could impact future performance. The company is facing headwinds in net revenue retention (NRR), which has declined for the fourth consecutive quarter. There is potential uncertainty in the US federal vertical, which could affect Okta Inc (NASDAQ:OKTA)'s federal business due to economic and political factors. Despite strong Q1 results, Okta Inc (NASDAQ:OKTA) is cautious about the macroeconomic environment, which could impact growth in the latter half of FY26. The company's go-to-market specialization is still in early stages, and while initial signals are positive, the long-term success of this strategy remains to be seen. Q: You've layered in additional conservatism into your guidance. What factors influenced this decision, and how do you see these impacting Q1 and future quarters? A: Todd McKinnon, CEO, explained that while Q1 was strong and on track, the guidance reflects a cautious approach due to macroeconomic uncertainties. Brett Tighe, CFO, added that while no macro impact was seen in Q1, the guidance includes potential risks due to the current economic environment, maintaining less conservatism than in previous models. Q: Can you elaborate on the go-to-market specialization and its impact on your business? A: Todd McKinnon noted that the specialization into Okta and Auth0 sellers is progressing well, with strong performance from Auth0 and a solid pipeline build. Eric Kelleher, COO, emphasized that specialization has proven effective in the past and is expected to enhance focus and enablement, benefiting both Okta and its customers. Q: How is the new suite-based pricing for the Okta platform performing, and what are the expectations? A: Todd McKinnon stated that the suite-based pricing introduced in Q1 is showing positive results, with customers opting for bundled products in good, better, best configurations. This approach leverages Okta's broad product portfolio and appeals to customers seeking strategic consolidation around identity. Q: What is the outlook for the customer identity side of the business, particularly with Auth0? A: Todd McKinnon highlighted that Auth0 had a strong Q1, driven by large customer deals. The introduction of Auth for GenAI is expected to further enhance demand, especially among smaller companies innovating in AI, indicating a broad-based opportunity for growth. Q: How does Okta plan to address the emerging market for non-human identities (NHIs) and AI agents? A: Todd McKinnon explained that Okta's comprehensive solution, including Identity Security Posture Management and Privileged Access, positions it well to manage NHIs. The company is focused on innovating and executing to maintain its lead in this growing market, emphasizing the importance of identity in AI-driven environments. For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Daily Mail
20-05-2025
- Business
- Daily Mail
Diploma shares hit record high as technical products firm ups guidance
Diploma shares hit a record high on Tuesday after the FTSE 100-listed technical products supplier upgraded its annual guidance. The FTSE 100 group, whose products include cables, fasteners and hydraulic seals, now expects to achieve organic revenue growth of 8 per cent this year, up from a prior prediction of 6 per cent. It also raised its full-year operating margin forecast from around 21 per cent to about 22 per cent. Shares in Diploma soared 18 per cent to a record £49.90 in early trading before retreating to be 14.7 per cent up by late Tuesday afternoon. Diploma's new outlook follows a bumper first-half performance, with the firm's sales expanding by 14 per cent to £728.5million in the six months ending March. Growth was driven by its controls segment, which saw organic revenue jump by 16 per cent and total turnover surge by over a third to £391.3million. The London-based business noted that its Windy City Wire segment enjoyed greater demand for its digital antenna systems and data centres, as well as increased sales in its core building markets. At the same time, Diploma said its international controls arm benefited from tailwinds in established markets, such as energy and defence, and the takeover of aerospace parts manufacturer Peerless. In contrast, sales in its seals division fell by 6 per cent to £226.7million, partly due to a halt in government infrastructure projects hitting purchases of hydraulic components at R&G, its UK fluid power business. However, the company's total adjusted operating profits still climbed by a quarter to £156.9million, supported by a 190 basis points improvement in operating margins. Johnny Thomson, chief executive of Diploma, said the performance demonstrated 'our sustainable quality compounding with excellent earnings growth at fantastic returns on capital'. He added: 'We have a differentiated business model with a well-diversified portfolio of high-quality businesses, allowing us to deliver compounding growth in good times and bad.' Diploma also said recently-imposed tariffs had a 'limited impact' because a large share of its goods are locally sourced. Since returning to office in January, President Donald Trump has put a 10 per cent baseline tariff on imported US goods, and 25 per cent taxes on cars, steel, and aluminium entering the US. Trump gradually raised tariffs on most Chinese products to a whopping 145 per cent, but the US and China agreed last week to drop their respective tariffs on each other to 30 per cent for 90 days. Thomson said: 'Despite the uncertain environment, I feel confident in our ability to deliver on our upgraded guidance this year. And I'm really excited about our longer-term prospects too.'
Reuters
14-05-2025
- Business
- Reuters
France's Atos sets 10 billion euro target for annual revenue in new strategic plan
May 14 (Reuters) - French IT group Atos ( opens new tab unveiled a new, four-year strategic plan on Wednesday, aiming for up to 10 billion euros ($11 billion) in annual revenue in 2028, with an operating margin of 10%. ($1 = 0.8939 euros)
Skift
12-05-2025
- Business
- Skift
Allegiant's Unique LCC Story
Skift Take Allegiant earned a +9% operating margin in Q1 2025. That seems downright triumphant compared to Southwest's figure of -2%, Frontier's -5%, or JetBlue's -8%, but context is key. In 2019, Allegiant's operating margin in the first quarter was 20%. In other words, it's performing 11 points worse today, a drop repeated at most of its LCC peers. In this week's feature story, we ask what's going on.
