ServiceTitan Plunges 30% to Post-IPO Low After Weak Q3 Guidance and CRO Departure Overshadow Earnings Beat

ServiceTitan shares collapsed 29.9% to $57.09 on September 9, a new post-IPO 52-week low, after the cloud software company issued fiscal Q3 revenue guidance of $285 million to $287 million, falling short of the analyst consensus of $287.87 million, and announced the departure of Chief Revenue Officer Ross Biestman.

The guidance disappointment came despite a strong fiscal Q2 2027 report. Adjusted earnings per share came in at $0.40, beating the FactSet consensus of $0.35 and up from $0.33 a year earlier. Revenue also topped expectations, and the company recorded record free cash flow for the quarter. ServiceTitan raised its full-year fiscal 2027 revenue outlook to $1.139 billion to $1.144 billion, up from its prior range of $1.13 billion to $1.14 billion.

The drag on Q3 guidance stems largely from the company's accelerating pivot to its Max AI platform. Because Max customers receive an initial billing-free period and ramp over the first year, management flagged a $2 million to $3 million subscription-revenue headwind over the rest of fiscal 2027, compounded by roughly $2 million in foregone professional-services fees as existing customers are transitioned to Max at no charge. The combined near-term revenue impact from the Max shift is approximately $4 million to $5 million. An additional calendar factor, one fewer business day in Q3 versus the prior year, also pressured the forecast, with management saying the comp issue is the primary driver of the guidance shortfall. Max revenue is expected to begin flowing through meaningfully only in Q4.

On the management side, CRO Ross Biestman will step down from his operating role following the company's Pantheon event during the fiscal third quarter and transition to an advisory role through fiscal year-end. Rikus Pretorius, currently senior vice president of worldwide sales, will assume the CRO title in the fourth quarter. The leadership change, layered on top of already cautious guidance, added to the selloff in a high-multiple stock. Unusual options volume spiked in TTAN shares throughout the session.