Stocks
ETFs
Options
Commodities
Crypto
Currency
Pro Newsletters
Research Tools
Daily Feeds
Calendars
Economic Indicators
Class Actions
Calculators
Education
About Us
Working with TipRanks
Follow Us
Freshworks (FRSH)
NASDAQ:FRSH
Holding FRSH?
Track your performance easily
Earnings Data
Report Date
Feb 11, 2025TBA Not Confirmed
Period Ending
2024 (Q4)Consensus EPS Forecast
$0.1Last Year’s EPS
$0.08Same Quarter Last Year
Moderate Buy
Based on 13 Analysts Ratings
---
Earnings Call Summary
Earnings Call Date:Nov 06, 2024
|% Change Since: 17.11%
|Next Earnings Date:Feb 11, 2025
Earnings Call Sentiment|Positive
Freshworks reported strong revenue growth and significant strides in AI product adoption, alongside a robust free cash flow. While there are some challenges in workforce realignment and expansion pressures, the company is confident in its strategic direction and profitability. The sentiment leans towards a positive outlook with proactive measures to enhance growth and efficiency.Company Guidance
During the Freshworks Q3 2024 earnings call, the company reported a strong quarter with revenue growth of 22% year-over-year, reaching $186.6 million, and generated a free cash flow of $40.1 million, resulting in a free cash flow margin of 21%. The company exceeded the 'rule of 40' by combining revenue growth and free cash flow margin. Freshworks ended the quarter with over 69,600 customers, adding more than 800 new customers, the highest organic net additions in the last four quarters. Key strategic imperatives included investing in their employee experience business, enhancing AI capabilities, and accelerating growth for customer experience solutions. The EX business achieved over $390 million in ARR with a growth rate of over 40% year-over-year. The company also reported an increase in copilot adoption by over 30% from the previous quarter, with more than 1,700 paying customers and improved attach rates for new deals over $30,000 in ARR. Freshworks announced a share repurchase program of up to $400 million, aiming to maintain a strong balance sheet with over $600 million in cash post-repurchase. For Q4 2024, revenue is expected to range between $187.8 million and $190.8 million, and for the full year, revenue is anticipated to be between $713.6 million and $716.6 million, with non-GAAP operating income between $80.8 million and $82.8 million. Looking ahead to 2025, revenue growth is preliminarily estimated in the low to mid-teens, with an expansion of the non-GAAP operating margin to above 16% and free cash flow margin to above 25%.Strong Revenue Growth
Revenue grew 22% year-over-year to $186.6 million, with a significant contribution from the EX business, which saw a 40% year-over-year growth in ARR.
Free Cash Flow Achievement
Generated free cash flow of $40.1 million, representing a free cash flow margin of 21% and an 82% increase compared to last year.
Customer Base Expansion
Ended the quarter with more than 69,600 total customers and a net addition of over 800 customers, marking the highest organic net adds for customers in the last 4 quarters.
AI Product Adoption and Expansion
Freddy AI products gained significant traction, with paid copilot adoption growing more than 30% over the previous quarter to over 1,700 paying customers.
EX Business Momentum
EX business ARR exceeded $390 million with a year-over-year growth rate of over 40%, and significant wins in deals over $100,000 ARR.
Share Repurchase Program
Board authorized a share repurchase program of up to $400 million, with a strong balance sheet maintaining over $600 million in cash post-buyback.
---
FRSH Earnings History
The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.
Beat
Missed
---
FRSH Earnings-Related Price Changes
Report Date | Price 1 Day Before | Price 1 Day After | Percentage Change |
|---|---|---|---|
| Nov 06, 2024 | $13.09 | $16.82 | +28.50% |
| Jul 30, 2024 | $13.28 | $12.50 | -5.87% |
| May 01, 2024 | $18.25 | $14.67 | -19.62% |
| Feb 06, 2024 | $21.82 | $21.15 | -3.07% |
Earnings announcements can affect a stock’s price. This table shows the stock's price the day before and the day after recent earnings reports, including the percentage change.
---
FAQ
When does Freshworks (FRSH) report earnings?
Freshworks (FRSH) is schdueled to report earning on Feb 11, 2025, TBA Not Confirmed.
What is Freshworks (FRSH) earnings time?
Freshworks (FRSH) earnings time is at Feb 11, 2025, TBA Not Confirmed.
Where can I see when companies are reporting earnings?
You can see which companies are reporting today on our designated earnings calendar.
What companies are reporting earnings today?
You can see a list of the companies which are reporting today on TipRanks earnings calendar.
What is FRSH EPS forecast?
FRSH EPS forecast for the fiscal quarter 2024 (Q4) is $0.1.
---