In the multi-billion home services sector, most local contractors have long managed jobs with paper invoices, phone calls, and Excel sheets. ServiceTitan saw an opportunity in this tech-neglected, fragmented market and created a cloud-based “operating system” for tradespeople.

The total volume of home service jobs processed through the ServiceTitan platform in 2024.

Here’s what you’ll learn: 

The U.S. home services industry generates roughly $600 billion annually. That should support modern operations.

It doesn't. The industry is wildly fragmented. No construction company holds more than 5% market share. Most shops are tiny. One owner, one landline, maybe a few trucks. Fragmentation prevents any standardization. Software vendors can't sell at scale when every contractor runs different processes.

The labor problem makes everything worse. Construction will need 439,000 workers in 2025 and 499,000 in 2026 just to meet demand. Nearly one in four construction workers is over 55. When you're short-staffed, paperwork competes with paid work. A missed invoice or lost phone message costs real money.

Phone calls drive most business. Sixty-eight percent of consumers prefer calling, but home services companies miss 27% of inbound calls. You can't reschedule a missed call from someone with a broken water heater. They're already dialing the next plumber.

ServiceTitan's founders watched this firsthand. Their parents ran contracting businesses from the kitchen table,typing invoices at night, managing shoeboxes of receipts, running three different desktop programs that didn't talk to each other. The software available couldn't scale past a one-truck operation.

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The founders, sons of contractors themselves, built software for the workflows they'd watched their parents struggle with. No generic enterprise tool. Cloud-based platform handling marketing, call booking, dispatch, GPS tracking, invoicing, and CRM in one system.

Mobile came first. Field techs needed to receive jobs, update status, photograph work, and process payments from a tablet at the job site. The software had to fit a plumber's workday, not the other way around.

Embedded payments became the second pillar. ServiceTitan processed credit cards, offered homeowner financing, and handled ACH transfers directly in the platform. The company takes a small fee on each transaction. By 2024, usage-based payments generated roughly 25% of revenue. When contractors close more jobs, ServiceTitan earns more automatic alignment.

Distribution required different channels for different customers. Small shops needed education first, so ServiceTitan invested in content showing what digital operations actually looked like. Sales teams walked family businesses through setup. For consolidators, ServiceTitan worked with private equity firms rolling up local contractors, becoming the standard system across franchise networks.

They also went straight to the source. ServiceTitan partnered with trade schools and programs like The Home Depot's Path to Pro. Future plumbers and HVAC techs learned the platform in training, solving two problems: contractors got workers who already knew the software, and ServiceTitan built early adoption with the next generation.

ServiceTitan became the dominant platform in North American field service. The company now serves nearly 10,000 contractors that perform jobs in zip codes covering 98.5% of the United States.

Revenue hit $685 million for the 12 months ending July 2024. More telling: ServiceTitan maintained over 110% net revenue retention and over 95% gross retention for 10 consecutive quarters. Contractors don't leave. Once they move their entire operation - dispatch, invoicing, payments, customer data - into the platform, switching becomes nearly impossible.

The company went public in December 2024, pricing shares at $71 and raising $625 million. By early 2025, ServiceTitan reached profitability with a 7.5% operating margin while still growing revenue 27% year-over-year.

Premium add-ons now generate additional revenue from existing customers. AI-powered dispatch tools, advanced scheduling optimization, and other "Pro" features let ServiceTitan capture more wallet share as contractors scale.

The trades were 0% software-driven a decade ago. ServiceTitan didn't just build a successful SaaS company. It created the category.

Key Takeaways for you to consider…

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$772 million: ARR in 2024 ARR (2024)

70%: Service Titan’s gross margin

>110%: ServiceTitan’s net dollar retention 

109 million: Home service jobs facilitated by ServiceTitan in 2024

$1.5 trillion: Estimated spend on trades services annually in the U.S. and Canada

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