Flashback to early 2023.
If you had asked a couple of thousand contractors back then to share their outlook at the time (which we did), a majority would say they were not expecting a banner year in terms of revenue or profitability.
In fact, only 18% of residential contractors and 22% of commercial contractors reported feeling optimistic or positive about the market in 2023.
While we can't speak to contractors not on ServiceTitan, we are pleased to report that, collectively, ServiceTitan customers were able to defy their own expectations with 11.2% average year-over-year revenue growth in the last 12 months.
Contractors can hardly be blamed for their wariness in light of lingering supply chain woes, inflation, and the ever-looming threat of recession, among other fears and challenges. But how then do we account for the better-than-expected results? The fact is ServiceTitan customers are a motivated bunch. It’s no surprise they could flip the script and eclipse the year’s mostly sober projections.
Meanwhile, ServiceTitan was focused in 2023 on ensuring customers had the necessary resources to achieve optimal results. While all credit goes to contractors for their successes, we are happy that our software, in conjunction with learning and networking opportunities like Pantheon, could play a role in making 2023 a year to remember rather than one to forget.
Please enjoy this look back at your year in Titan triumphs.(1)
Optimizing for success
A quick study of ServiceTitan marketing efforts would reveal no surprises about what we think our solution can do for contractors. More efficient processes, better insights, and frictionless scalability top the list of the unique value ServiceTitan provides.
Yet each of those outcomes ladder up to the ultimate reason customers sign on with ServiceTitan—to ensure they have the tools, technology, and support needed to be as successful as possible. The numbers from the last 12 months suggest contractors on ServiceTitan are collectively tracking toward that goal:
25 million households/businesses served (2)
11.2% average YoY revenue growth
16% higher average ticket size with integrated financing (3)
233K leads generated through Marketing Pro
Impressive on their own, what makes these results even more meaningful is the fact that each one is created by thousands of small wins piling up continuously day after day.
Take Integrated Financing. Data shows that when contractors offer a choice between three estimates plus financing, customers choose the best option 32% of the time.(4)
Considering that the best option is typically double the cost of the least expensive one, it's clear to see how small, incremental wins can lead to big results for contractors—in this case, 39% higher year-over-year revenue growth compared to situations in which financing products are not offered.(5)
Consistency is key
Speaking of small wins adding up to big results, contractors in the last year put up huge numbers across the board in terms of day-to-day operations. If a journey of a thousand miles begins with a single step, the journey to the top for contractors begins with a single email, inbound call, or purchase order.
Here’s a snapshot of just how much of the day-to-day ServiceTitan users accomplished on the platform.
83 million inbound calls taken
52 million jobs booked
43 million estimates created
11 million POs created
252 million emails sent via Marketing Pro
Over 800K jobs booked via Scheduling Pro
Regardless of the metrics used to measure progress, the takeaway here is that success does not happen overnight. It takes persistence, perseverance, and above all consistency to hit 11.2% YoY revenue growth collectively. In 2023 our customers put on a masterclass in that regard.
Committed to the trades
ServiceTitan’s mission is to build world-class software for contractors. No less important is creating both community and learning opportunities for people who have dedicated their lives to the trades.
Why does it matter? Such connections are how we learn the intricacies and nuances of the contractor experience, and, in turn, how contractors learn the intricacies and nuances of our software, much to the benefit of everyone involved.
Here’s a quick breakdown of how contractors engaged with ServiceTitan in 2023.
2,262 Pantheon attendees learning and networking together at the premier user conference in the trades
450K courses completed in Academy helping customers proactively deepen and broaden their understanding of ServiceTitan products
211 new Torch Network members contributing to a dialog of power users sharing their success and helping influence the direction of the platform
368 new Certified Admins becoming the go-to in-house experts on ServiceTitan in shops across the country
80K Toolbox for the Trades podcast views/downloads reflecting and reinforcing a vibrant, dynamic culture related to the trades
The year’s single most popular podcast episode was EP 110 (“The Day I Almost Quit the Trades with NexGen’s Ismael Valdez”). Check it out here if you’re not one of the 2,200+ people who already did.
What’s in store in ‘24: Innovation continues
The topic of artificial intelligence dominated more than its share of headlines and conversations in 2023. It also dominated the main stage at Pantheon in Orlando, where ServiceTitan Co-Founder Vahe Kuzoyan enumerated the many ways our own version of AI, Titan Intelligence (ti), will be on display in product after product in the months and years ahead. Highlights include:
Invoice Summary Generator: Get crisp, well-written, personalized invoice summaries in seconds based on prompts and your original invoice and job summaries.
Reputation Review Response Generator: Respond faster to reviews and rank higher in local search; generate tailored responses to reviews in just one click and match the voice and tone of your brand.
Automated Invoice Capture: Automatically map key fields from scanned invoices to relevant fields within ServiceTitan.
Equipment Data Plate Scanning & Opportunity Predictor: Remove manual input by seamlessly scanning equipment and automatically populating all relevant data. With all your equipment details in ServiceTitan, you get proactive insights into the deficiencies and the opportunity cost to replace.
Financing: Get help recommending the best financing plans to optimize your business outcomes.
Similar to 2023, surveys indicate that at least some contractors expect business to slow in 2024. While no one can predict the future, what we can say for sure is that ServiceTitan will continue innovating so that our customers can grow, scale, and generally overcome challenges in any economic landscape.
To that end, expect to see further developments in the realm of Titan Intelligence, Pro Products, and Fintech alongside ongoing work to strengthen ServiceTitan’s core products.
Finally, keep an eye out for announcements related to special events and learning opportunities. If last year was any indication, Pantheon 2024 in particular is one you won’t want to miss.
[1] All metrics are measured over the period November 2022 to November 2023. Results are not guaranteed and may vary.
[2] Includes households and business end customers; may include duplicates. 25,000,000 is a rounded number.
[3] Customers using integrated finance see 16% higher average ticket sizes compared to customers who don't use it.
[4] Results based on customer samples; your estimates may differ.
[5] Percentage increase represents the percentage change between customers using financing products v. not; your individual results may vary.
