[Fourth Quarter and Full Year 2024 Results Overview](index=1&type=section&id=Fourth%20Quarter%20and%20Full%20Year%202024%20Results%20Overview) Freshworks achieved strong financial performance in Q4 and full year 2024, exceeding expectations with significant revenue growth and improved profitability [Fourth Quarter 2024 Financial Summary Results](index=1&type=section&id=Fourth%20Quarter%202024%20Financial%20Summary%20Results) Freshworks exceeded Q4 2024 expectations, reporting **22% revenue growth** to **$194.6 million** and **21%** operating and adjusted free cash flow margins - Freshworks CEO and President Dennis Woodside stated the company once again exceeded key metric expectations in the fourth quarter, achieving **22% year-over-year revenue growth** to **$194.6 million**, with an operating cash flow margin of **21%** and an adjusted free cash flow margin of **21%**[2](index=2&type=chunk) Key Financial Data for Fourth Quarter 2024 | Metric | Q4 2024 | Q4 2023 | Y/Y Change | | :-------------------------------- | :---------- | :---------- | :--------- | | Revenue | $194.6 Million | $160.1 Million | +22% | | GAAP Operating (Loss) | $(23.8) Million | $(40.0) Million | Loss narrowed | | Non-GAAP Operating Income | $40.3 Million | $11.5 Million | +250.4% | | GAAP EPS (Loss) | $(0.07) | $(0.09) | Loss narrowed | | Non-GAAP Diluted Net Income Per Share | $0.14 | $0.08 | +75% | | Net Cash Provided by Operating Activities | $41.4 Million | $30.9 Million | +34% | | Adjusted Free Cash Flow | $41.7 Million | $28.6 Million | +45.8% | | Cash, Cash Equivalents, and Marketable Securities (as of Dec 31, 2024) | $1.07 Billion | N/A | N/A | [Full Year 2024 Financial Summary Results](index=1&type=section&id=Full%20Year%202024%20Financial%20Summary%20Results) Freshworks achieved significant revenue growth and improved profitability in FY2024, with **21% revenue growth** to **$720.4 million** and non-GAAP operating income up **122.7%** Key Financial Data for Full Year 2024 | Metric | Full Year 2024 | Full Year 2023 | Y/Y Change | | :-------------------------------- | :---------- | :---------- | :--------- | | Revenue | $720.4 Million | $596.4 Million | +21% | | GAAP Operating (Loss) | $(138.6) Million | $(170.2) Million | Loss narrowed | | Non-GAAP Operating Income | $99.1 Million | $44.5 Million | +122.7% | | GAAP EPS (Loss) | $(0.32) | $(0.47) | Loss narrowed | | Non-GAAP Diluted Net Income Per Share | $0.43 | $0.26 | +65.4% | | Net Cash Provided by Operating Activities | $160.6 Million | $86.2 Million | +86.3% | | Adjusted Free Cash Flow | $153.3 Million | $77.8 Million | +97% | [Fourth Quarter Key Metrics and Recent Business Highlights](index=2&type=section&id=Fourth%20Quarter%20Key%20Metrics%20and%20Recent%20Business%20Highlights) Freshworks advanced customer growth and strategic partnerships in Q4 2024, reporting **11% year-over-year growth** in customers with **ARR over $5,000** and new executive appointments Key Operating Metrics for Fourth Quarter 2024 | Metric | Q4 2024 | Y/Y Growth | | :-------------------------------- | :---------- | :--------- | | Customers with ARR over $5,000 | 22,558 | +11% (13% constant currency) | | Net Dollar Retention Rate | 103% | -5% (QoQ vs Q3 2024) | | Net Dollar Retention Rate (Constant Currency) | 105% | -2% (QoQ vs Q3 2024) | - Recent business highlights include new customer additions such as New Balance, Rawlings Sporting Goods, Sophos, Onfido, and Mesa Airlines, the appointment of Srinivasan Raghavan as Chief Product Officer and Venkitesh Subramanian as SVP of Customer Experience Product Management, and a new strategic agreement with global systems integrator partner Unisys[8](index=8&type=chunk) [Financial Outlook](index=3&type=section&id=Financial%20Outlook) Freshworks provides financial guidance for Q1 and full year 2025, projecting continued revenue growth and sustained non-GAAP profitability [First Quarter and Full Year 2025 Guidance](index=3&type=section&id=First%20Quarter%20and%20Full%20Year%202025%20Guidance) Freshworks provided financial expectations for Q1 and full year 2025, projecting continued revenue growth and sustained non-GAAP operating income and net income per share Financial Outlook for First Quarter and Full Year 2025 | Metric (in Millions, except per share data) | Q1 2025 | Full Year 2025 | | :-------------------------------- | :--------------- | :----------- | | Revenue | $190.0 - $193.0 | $809.0 - $821.0 | | Year-over-Year Growth | 15% - 17% | 12% - 14% | | Year-over-Year Growth (Constant Currency) | 16% - 18% | 13% - 15% | | Non-GAAP Operating Income | $32.5 - $34.5 | $131.0 - $139.0 | | Non-GAAP Diluted Net Income Per Share | $0.12 - $0.14 | $0.52 - $0.54 | [Non-GAAP Financial Measures and Operating Metrics](index=4&type=section&id=Non-GAAP%20Financial%20Measures%20and%20Operating%20Metrics) This section defines Freshworks' non-GAAP financial measures and key operating metrics, detailing adjustments and their relevance for performance assessment [Explanation of Non-GAAP Financial Measures](index=4&type=section&id=Explanation%20of%20Non-GAAP%20Financial%20Measures) Freshworks uses non-GAAP financial measures to assess business performance, excluding non-cash or non-recurring items like stock-based compensation and acquisition amortization for a clearer operational view - The company uses non-GAAP metrics as part of its overall performance assessment, including annual operating budgets, quarterly forecasts, evaluating business strategy effectiveness, and communicating financial performance to the board, aiming to provide consistency and comparability with past financial performance[15](index=15&type=chunk) - Limitations of non-GAAP metrics include potential differences from those used by other companies, limiting comparability, which the company addresses by providing specific information on GAAP items excluded from these non-GAAP financial measures[16](index=16&type=chunk) - Items excluded from non-GAAP financial measures include stock-based compensation expense (non-cash, varies by company valuation methods), employer payroll taxes on employee equity transactions (dependent on stock price and other uncontrollable factors), amortization of acquired intangible assets (non-cash, influenced by acquisition timing and size), restructuring charges (primarily employee severance from November 2024 plan), and income tax effects and adjustments (excluding tax impact of above adjustments and acquisition-related tax impacts)[17](index=17&type=chunk)[22](index=22&type=chunk) - Adjusted free cash flow is defined as net cash provided by operating activities less purchases of property and equipment and capitalized internal-use software, plus restructuring charges, serving as a useful liquidity measure of the company's core business cash generation after property and equipment acquisitions[18](index=18&type=chunk) [Operating Metrics Definitions](index=5&type=section&id=Operating%20Metrics%20Definitions) Freshworks defines key operating metrics like Annual Recurring Revenue (ARR), customers with ARR over $5,000, and Net Dollar Retention Rate, with constant currency adjustments for accurate business performance - Annual Recurring Revenue (ARR) refers to the sum of subscription, software license, and maintenance revenue contractually expected to be recognized over the next 12 months from all customers at a specific point in time, assuming no additions, reductions, or cancellations of subscriptions, and revenue recognized proportionally over the contract term[19](index=19&type=chunk) - Customers with ARR over $5,000 refers to the number of business entities or individuals with one or more paid subscription products contributing over **$5,000** in ARR as of a specific date[19](index=19&type=chunk) - Net Dollar Retention Rate is calculated by dividing the ending ARR from the same cohort of customers at the end of the reporting period (including expansion from upsells, cross-sells, renewals, and acquisitions, less contractions or churn) by the beginning ARR 12 months prior[20](index=20&type=chunk) - Constant currency adjustments for operating metrics involve adjusting the growth rate of customers with ARR over $5,000 and Net Dollar Retention Rate to exclude the impact of foreign exchange rate fluctuations, converting non-USD ending ARR for the current period using the ending exchange rates from the comparable period[21](index=21&type=chunk) [Corporate Information](index=3&type=section&id=Corporate%20Information) This section provides essential corporate communications, including investor call details, forward-looking statements, and an overview of Freshworks Inc [Webcast and Conference Call Information](index=3&type=section&id=Webcast%20and%20Conference%20Call%20Information) Freshworks will host an investor conference call on February 11, 2025, to discuss financial results and business highlights, with webcast and replay services available - The company will host a conference call on February 11, 2025, at 2:00 PM PT / 5:00 PM ET, with investors able to listen to a live audio webcast via ir.freshworks.com, and an audio webcast replay available for twelve months post-conference[12](index=12&type=chunk) [Forward-Looking Statements](index=6&type=section&id=Forward-Looking%20Statements) This press release contains forward-looking statements regarding future performance, financial outlook, and product value, based on current expectations but subject to various risks and uncertainties - This press release contains forward-looking statements as defined by the Private Securities Litigation Reform Act of 1995, covering GAAP and non-GAAP estimates for Q1 and full year 2025, financial outlook, and product value to customers, which are based on current expectations, estimates, and projections, and are subject to various risks and uncertainties that could cause actual results to differ materially[23](index=23&type=chunk) - The company cautions investors not to place undue reliance on forward-looking statements, which speak only as of their date of issuance, and undertakes no obligation to update any forward-looking statements unless required by law[24](index=24&type=chunk) [About Freshworks Inc.](index=7&type=section&id=About%20Freshworks%20Inc.) Freshworks Inc. (NASDAQ: FRSH) provides human-centered AI-powered service software, enabling over **72,000 global businesses** to deliver exceptional customer and employee experiences - Freshworks Inc. (NASDAQ: FRSH) provides human-centered AI-powered service software, helping organizations deliver exceptional customer and employee experiences, with over **72,000 companies globally**, including American Express, Bridgestone, Databricks, Fila, Nucor, and Sony, choosing Freshworks' simple solutions to enhance efficiency and loyalty[25](index=25&type=chunk) [Condensed Consolidated Financial Statements (GAAP)](index=8&type=section&id=Condensed%20Consolidated%20Financial%20Statements%20(GAAP)) This section presents Freshworks' GAAP financial statements, including statements of operations, balance sheets, and cash flows, for the reported periods [Statements of Operations](index=8&type=section&id=Statements%20of%20Operations) Freshworks' condensed consolidated statements of operations present GAAP financial performance for Q4 and full year 2024, including revenue, gross profit, operating expenses, and net loss Condensed Consolidated Statements of Operations (Selected Data, in Thousands) | Metric | Q4 2024 | Q4 2023 | Full Year 2024 | Full Year 2023 | | :-------------------------------- | :-------- | :-------- | :-------- | :-------- | | Revenue | $194,571 | $160,111 | $720,420 | $596,432 | | Cost of Revenue | $29,459 | $27,009 | $113,330 | $103,369 | | Gross Profit | $165,112 | $133,102 | $607,090 | $493,063 | | Total Operating Expenses | $188,904 | $173,143 | $745,700 | $663,235 | | Operating Loss | $(23,792) | $(40,041) | $(138,610) | $(170,172) | | Net Loss | $(21,900) | $(28,081) | $(95,368) | $(137,436) | | Net Loss Per Share - Basic and Diluted | $(0.07) | $(0.09) | $(0.32) | $(0.47) | [Balance Sheets](index=9&type=section&id=Balance%20Sheets) Freshworks' condensed consolidated balance sheets detail the financial position as of December 31, 2024, including assets, liabilities, and stockholders' equity Condensed Consolidated Balance Sheets (Selected Data, in Thousands) | Metric | Dec 31, 2024 | Dec 31, 2023 | | :-------------------------------- | :------------- | :------------- | | Cash and cash equivalents | $620,315 | $48 | | Marketable securities | $449,750 | $69 | | Accounts receivable, net | $122,910 | $9 | | Deferred contract acquisition costs | $26,106 | $2 | | Prepaid expenses and other current assets | $46,346 | $4 | | Total current assets | $1,265,427 | N/A | | Property and equipment, net | $25,893 | $2 | | Operating lease right-of-use assets | $36,891 | $3 | | Deferred contract acquisition costs, non-current | $22,534 | $1 | | Goodwill | $147,014 | N/A | | Intangible assets, net | $90,840 | N/A | | Deferred tax assets | $8,499 | $1 | | Other assets | $14,786 | N/A | | Total assets | $1,611,884 | N/A | | Accounts payable | $1,619 | N/A | | Accrued liabilities | $81,933 | $5 | | Deferred revenue | $323,435 | $26 | | Income taxes payable | $728 | N/A | | Total current liabilities | $407,715 | $32 | | Operating lease liabilities, non-current | $30,221 | $2 | | Other liabilities | $36,027 | $3 | | Total liabilities | $473,963 | $38 | | Common stock | $3 | N/A | | Additional paid-in capital | $4,874,133 | N/A | | Accumulated other comprehensive loss | $(338) | N/A | | Accumulated deficit | $(3,735,877) | N/A | | Total stockholders' equity | $1,137,921 | N/A | | Total liabilities and stockholders' equity | $1,611,884 | N/A | [Statements of Cash Flows](index=10&type=section&id=Statements%20of%20Cash%20Flows) Freshworks' condensed consolidated statements of cash flows detail cash generated from operating, investing, and financing activities for Q4 and full year 2024, illustrating cash generation and utilization Condensed Consolidated Statements of Cash Flows (Selected Data, in Thousands) | Metric | Q4 2024 | Q4 2023 | Full Year 2024 | Full Year 2023 | | :-------------------------------- | :-------- | :-------- | :-------- | :-------- | | Net cash provided by operating activities | $41,362 | $30,866 | $160,646 | $86,178 | | Net cash provided by investing activities | $209,148 | $12,219 | $38,803 | $158,499 | | Net cash used in financing activities | $(21,302) | $(13,210) | $(67,260) | $(60,619) | | Net increase (decrease) in cash, cash equivalents, and restricted cash | $229,208 | $29,875 | $132,189 | $184,058 | | Cash, cash equivalents, and restricted cash at end of period | $620,405 | $488,216 | $620,405 | $488,216 | [Reconciliation of GAAP to Non-GAAP Measures](index=11&type=section&id=Reconciliation%20of%20GAAP%20to%20Non-GAAP%20Measures) This section provides detailed reconciliations between GAAP and non-GAAP financial measures for revenue, gross profit, operating expenses, net loss, and free cash flow, highlighting adjustment impacts [Revenue Reconciliation](index=11&type=section&id=Revenue%20Reconciliation) This section reconciles GAAP revenue to constant currency adjusted revenue, illustrating foreign exchange impact on revenue growth rates for Q4 and full year 2024 Revenue Reconciliation (in Thousands) | Metric | Q4 2024 | Q4 2023 | Growth Rate | Full Year 2024 | Full Year 2023 | Growth Rate | | :-------------------------------- | :-------- | :-------- | :------- | :-------- | :-------- | :------- | | GAAP Revenue | $194,571 | $160,111 | 22% | $720,420 | $596,432 | 21% | | Impact of foreign exchange rate fluctuations | $(1,044) | — | | $(1,414) | — | | | Revenue, constant currency | $193,527 | $160,111 | 21% | $719,006 | $596,432 | 21% | [Gross Profit and Operating Expenses Reconciliation](index=12&type=section&id=Gross%20Profit%20and%20Operating%20Expenses%20Reconciliation) This section reconciles GAAP gross profit and operating expenses (R&D, Sales & Marketing, G&A) to non-GAAP, adjusting for stock-based compensation, employer payroll taxes, and amortization of acquired intangibles Gross Profit Reconciliation (in Thousands) | Metric | Q4 2024 | Q4 2023 | Full Year 2024 | Full Year 2023 | | :-------------------------------- | :-------- | :-------- | :-------- | :-------- | | GAAP Gross Profit | $165,112 | $133,102 | $607,090 | $493,063 | | Non-GAAP Gross Profit | $167,945 | $134,762 | $616,705 | $500,131 | | GAAP Gross Margin | 84.9% | 83.1% | 84.3% | 82.7% | | Non-GAAP Gross Margin | 86.3% | 84.2% | 85.6% | 83.9% | Operating Expenses Reconciliation (in Thousands) | Metric | Q4 2024 (GAAP) | Q4 2024 (Non-GAAP) | Full Year 2024 (GAAP) | Full Year 2024 (Non-GAAP) | | :-------------------------------- | :--------------- | :----------------- | :--------------- | :----------------- | | Research and development | $41,028 | $31,961 | $164,590 | $122,788 | | Sales and marketing | $90,674 | $75,890 | $390,817 | $320,485 | | General and administrative | $47,538 | $19,780 | $180,629 | $74,289 | [Operating Loss and Net Loss Reconciliation](index=13&type=section&id=Operating%20Loss%20and%20Net%20Loss%20Reconciliation) This section reconciles GAAP operating loss and net loss to non-GAAP equivalents, adjusting for stock-based compensation, employer payroll taxes, acquisition amortization, restructuring charges, and income tax Operating Loss Reconciliation (in Thousands) | Metric | Q4 2024 | Q4 2023 | Full Year 2024 | Full Year 2023 | | :-------------------------------- | :-------- | :-------- | :-------- | :-------- | | GAAP Operating Loss | $(23,792) | $(40,041) | $(138,610) | $(170,172) | | Non-GAAP Operating Income | $40,314 | $11,544 | $99,143 | $44,549 | | GAAP Operating Margin | (12.2)% | (25.0)% | (19.2)% | (28.5)% | | Non-GAAP Operating Margin | 20.7% | 7.2% | 13.8% | 7.5% | Net Loss Reconciliation (in Thousands) | Metric | Q4 2024 | Q4 2023 | Full Year 2024 | Full Year 2023 | | :-------------------------------- | :-------- | :-------- | :-------- | :-------- | | GAAP Net Loss | $(21,900) | $(28,081) | $(95,368) | $(137,436) | | Non-GAAP Net Income | $42,861 | $23,285 | $130,368 | $78,683 | [Net Loss Per Share and Free Cash Flow Reconciliation](index=14&type=section&id=Net%20Loss%20Per%20Share%20and%20Free%20Cash%20Flow%20Reconciliation) This section reconciles GAAP diluted net loss per share to non-GAAP diluted net income per share, detailing adjusted free cash flow calculation and highlighting non-GAAP adjustment impacts Net Loss Per Share Reconciliation (Diluted) | Metric | Q4 2024 | Q4 2023 | Full Year 2024 | Full Year 2023 | | :-------------------------------- | :-------- | :-------- | :-------- | :-------- | | GAAP Diluted Net Loss Per Share | $(0.07) | $(0.09) | $(0.32) | $(0.47) | | Non-GAAP Diluted Net Income Per Share | $0.14 | $0.08 | $0.43 | $0.26 | Adjusted Free Cash Flow Calculation (in Thousands) | Metric | Q4 2024 | Q4 2023 | Full Year 2024 | Full Year 2023 | | :-------------------------------- | :-------- | :-------- | :-------- | :-------- | | Net cash provided by operating activities | $41,362 | $30,866 | $160,646 | $86,178 | | Adjusted Free Cash Flow | $41,698 | $28,591 | $153,298 | $77,838 | | Operating Cash Flow Margin | 21.3% | 22.3% | 22.3% | 14.4% | | Adjusted Free Cash Flow Margin | 21.4% | 21.3% | 21.3% | 13.1% |

SAN MATEO, Calif., Feb. 11, 2025 (GLOBE NEWSWIRE) -- Freshworks Inc. (Nasdaq: FRSH), the provider of people-first AI service software, today announced financial results for its fourth quarter and full year ended December 31, 2024. “Freshworks outperformed its previously provided estimates again in Q4 across all our key metrics, delivering another strong quarter with revenue growing 22% year over year to $194.6 million, operating cash flow margin of 21%, and an adjusted free cash flow margin of 21%,” said D ...

Investors might want to bet on Freshworks Inc. (FRSH) , as it has been recently upgraded to a Zacks Rank #1 (Strong Buy). This upgrade primarily reflects an upward trend in earnings estimates, which is one of the most powerful forces impacting stock prices.A company's changing earnings picture is at the core of the Zacks rating. The system tracks the Zacks Consensus Estimate -- the consensus measure of EPS estimates from the sell-side analysts covering the stock -- for the current and following years.The po ...

Investors might want to bet on Freshworks Inc. (FRSH) , as it has been recently upgraded to a Zacks Rank #1 (Strong Buy). This upgrade primarily reflects an upward trend in earnings estimates, which is one of the most powerful forces impacting stock prices.A company's changing earnings picture is at the core of the Zacks rating. The system tracks the Zacks Consensus Estimate -- the consensus measure of EPS estimates from the sell-side analysts covering the stock -- for the current and following years.The po ...

SAN MATEO, Calif., Jan. 09, 2025 (GLOBE NEWSWIRE) -- Freshworks Inc. (NASDAQ:FRSH) will announce its financial results for the fourth quarter and full year ended December 31, 2024 following the close of market on Tuesday, February 11, 2025. Freshworks will host a live audio webcast beginning at 2:00 p.m Pacific Time / 5:00 p.m. Eastern Time that same day to discuss the company's financial results and business highlights. Event: Freshworks Fourth Quarter and Full Year 2024 Financial Results Date: Tuesday, Fe ...

SAN MATEO, Calif., Jan. 07, 2025 (GLOBE NEWSWIRE) -- Freshworks Inc., (NASDAQ: FRSH) today announced that Joon Huh, Senior Vice President of Investor Relations and Treasury, is scheduled to participate in a fireside chat at the 27th Annual Needham Growth Conference on Tuesday, January 14, 2025 at 8:45 a.m. Pacific Time / 11:45 a.m. Eastern Time. An audio webcast replay will be accessible from the Freshworks investor relations website at https://ir.freshworks.com. About Freshworks Inc.Freshworks Inc. (NASDAQ ...

Freshworks Inc. (FRSH) appears an attractive pick, as it has been recently upgraded to a Zacks Rank #2 (Buy). This upgrade is essentially a reflection of an upward trend in earnings estimates -- one of the most powerful forces impacting stock prices.A company's changing earnings picture is at the core of the Zacks rating. The system tracks the Zacks Consensus Estimate -- the consensus measure of EPS estimates from the sell-side analysts covering the stock -- for the current and following years.Individual in ...

SAN MATEO, Calif., Nov. 26, 2024 (GLOBE NEWSWIRE) -- Freshworks Inc. (NASDAQ: FRSH) today announced that Tyler Sloat, Chief Operating Officer and Chief Financial Officer, is scheduled to participate in a fireside chat at the UBS Global Technology Conference on Tuesday, December 3, 2024 at 12:35 p.m. Pacific Time (3:35 p.m. Eastern Time). An audio webcast replay will be accessible from the Freshworks investor relations website at https://ir.freshworks.com. About Freshworks Inc.Freshworks Inc. (NASDAQ: FRSH) ...

Freshworks (NASDAQ: FRSH ) has been punished significantly by the market in 2024, but may be poised for a 2025 rebound. Software stocks have been a stock pickers sector this year, but interest rate cuts will provide the space a boost going forward. FRSH isI am focused on Canadian stocks, Technology and growth stocks. The key to long term returns are disruptive companies that change the landscape of their industry. I also focus on Mid-Cap companies with strong management and high growth to attain alpha. I bu ...

Core Insights - Freshworks Inc. (FRSH) shows a significantly improving earnings outlook, making it a strong investment choice as analysts continue to raise earnings estimates [1][2] - The correlation between earnings estimate revisions and stock price movements suggests that the stock price may reflect the positive earnings outlook [2] - The Zacks Rank system indicates a favorable position for Freshworks, with a current rank of 2 (Buy), supported by strong analyst agreement on earnings estimates [3][6] Current-Quarter Estimate Revisions - For the current quarter, Freshworks is expected to earn $0.10 per share, reflecting a +25% change from the previous year [4] - The Zacks Consensus Estimate for Freshworks has increased by 6.67% over the last 30 days, with six estimates raised and no negative revisions [4] Current-Year Estimate Revisions - The full-year earnings estimate stands at $0.38 per share, representing a +46.15% change from the previous year [5] - Over the past month, seven estimates have been revised upward for Freshworks, leading to a 6.74% increase in the consensus estimate [5] Favorable Zacks Rank - Freshworks currently holds a Zacks Rank 2 (Buy), indicating strong potential for outperformance based on earnings estimate revisions [6] - Research indicates that stocks with Zacks Rank 1 (Strong Buy) and 2 (Buy) tend to significantly outperform the S&P 500 [6] Bottom Line - The stock has gained 44.7% over the past four weeks, driven by solid estimate revisions, suggesting that it may be a good addition to investment portfolios [7]