Core Viewpoint - Freshworks Inc. is set to announce its financial results for the third quarter of 2024 on November 6, 2024, after market close, followed by a live audio webcast to discuss the results and business highlights [1][2]. Company Overview - Freshworks Inc. (NASDAQ: FRSH) provides AI-powered customer and employee-service solutions aimed at enhancing efficiency and engagement for companies of all sizes, resulting in improved customer satisfaction and employee productivity [3]. - The company is headquartered in San Mateo, California, and serves over 68,000 customers globally, including notable clients such as American Express, Bridgestone, Databricks, Fila, Nucor, and Sony [3].

Maskot Investment action I recommended a hold rating for Freshworks (NASDAQ:FRSH) when I wrote about it in May, as I expected the macro environment to continue impacting FRSH, in particular, the near-term performance. Based on my current outlook and analysis, I recommend a buy rating. I believe the upside potential is attractive if an investor has a medium-term investment horizon (i.e., look past near-term weakness). Growth should be able to sustain at 20% as the macro environment recovers with the upcoming ...

This quarterly report represents an earnings surprise of 33.33%. A quarter ago, it was expected that this company would post earnings of $0.08 per share when it actually produced earnings of $0.10, delivering a surprise of 25%. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. While Freshwork has underperformed the market so far this year, the question that com ...

PART I. FINANCIAL INFORMATION [ITEM 1. Financial Statements (unaudited)](index=6&type=section&id=ITEM%201.%20Financial%20Statements%20(unaudited)) The unaudited condensed consolidated financial statements for Freshworks Inc. as of June 30, 2024, show total assets of $1.54 billion, up from $1.46 billion at year-end 2023, with revenue of $339.3 million for the six months ended June 30, 2024, a 20% increase year-over-year, and a net loss of $43.5 million, an improvement from the $78.3 million loss in the prior year period, reflecting the recent acquisition of Device42 in June 2024 [Condensed Consolidated Balance Sheets](index=6&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) As of June 30, 2024, total assets increased to $1.54 billion, primarily driven by a significant rise in Goodwill and Intangible Assets from the Device42 acquisition, while cash and cash equivalents decreased to $310.3 million from $488.1 million at the end of 2023, and total liabilities grew to $428.5 million Condensed Consolidated Balance Sheet Highlights (in thousands) | Account | June 30, 2024 | December 31, 2023 | | :--- | :--- | :--- | | **Assets** | | | | Cash and cash equivalents | $310,266 | $488,121 | | Marketable securities | $708,848 | $699,506 | | Goodwill | $147,014 | $6,181 | | Intangible assets, net | $98,024 | $— | | **Total Assets** | **$1,543,584** | **$1,456,772** | | **Liabilities & Equity** | | | | Deferred revenue | $287,629 | $266,399 | | **Total Liabilities** | **$428,485** | **$384,510** | | **Total Stockholders' Equity** | **$1,115,099** | **$1,072,262** | [Condensed Consolidated Statements of Operations](index=7&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) For the three months ended June 30, 2024, revenue grew 20% year-over-year to $174.1 million, with the net loss for the quarter improving to $20.2 million from a $35.7 million loss in the same period of 2023, and for the six-month period, revenue also grew 20% to $339.3 million, with the net loss narrowing to $43.5 million from $78.3 million year-over-year Condensed Consolidated Statements of Operations (in thousands, except per share data) | Metric | Q2 2024 | Q2 2023 | Six Months 2024 | Six Months 2023 | | :--- | :--- | :--- | :--- | :--- | | Revenue | $174,131 | $145,079 | $339,274 | $282,771 | | Gross Profit | $145,956 | $120,218 | $285,209 | $232,674 | | Loss from operations | $(43,787) | $(43,289) | $(75,954) | $(91,396) | | Net loss | $(20,184) | $(35,658) | $(43,509) | $(78,322) | | Net loss per share | $(0.07) | $(0.12) | $(0.15) | $(0.27) | [Condensed Consolidated Statements of Cash Flows](index=9&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) For the six months ended June 30, 2024, net cash provided by operating activities more than doubled to $77.0 million from $31.4 million in the prior year period, while net cash used in investing activities was $220.5 million, primarily due to the $213.9 million cash payment for the Device42 acquisition, and net cash used in financing activities increased to $34.3 million Cash Flow Summary for Six Months Ended June 30 (in thousands) | Cash Flow Activity | 2024 | 2023 | | :--- | :--- | :--- | | Net cash provided by operating activities | $76,955 | $31,399 | | Net cash provided by (used in) investing activities | $(220,495) | $44,136 | | Net cash used in financing activities | $(34,318) | $(23,380) | - The significant use of cash in investing activities in 2024 was driven by **$213.9 million** paid for a business combination (Device42), net of cash acquired[305](index=305&type=chunk) [Notes to Condensed Consolidated Financial Statements](index=10&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) The notes detail significant accounting policies, the impact of the Device42 acquisition, revenue recognition, fair value measurements, and commitments, noting that on June 6, 2024, the company acquired Device42 for approximately $238.1 million, resulting in $140.8 million of goodwill, and that the company also faces a securities class action lawsuit filed in November 2022, with total remaining performance obligations standing at $469.8 million as of June 30, 2024 - On June 6, 2024, the Company acquired IT asset management company Device42 for approximately **$238.1 million**, consisting of **$225.3 million** in cash and **$12.9 million** in stock and options[85](index=85&type=chunk)[132](index=132&type=chunk)[214](index=214&type=chunk) - The acquisition of Device42 added **$140.8 million** in goodwill and **$99.0 million** in identifiable intangible assets (customer relationships, developed technology, trademarks)[158](index=158&type=chunk)[134](index=134&type=chunk) - As of June 30, 2024, the company had **$469.8 million** in remaining performance obligations, with **$341.9 million** expected to be recognized as revenue in the next 12 months[121](index=121&type=chunk) - The company is defending against a securities class action lawsuit filed in November 2022 and a related stockholder derivative complaint, both alleging material misstatements in IPO offering documents[164](index=164&type=chunk)[33](index=33&type=chunk) [ITEM 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=28&type=section&id=ITEM%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management reports 20% year-over-year revenue growth for both the three and six months ended June 30, 2024, driven by new customers and expansion within the existing base, noting that the net dollar retention rate was 106%, down from 108% a year prior, reflecting macroeconomic pressures on customer expansion, though partially offset by the Device42 acquisition, and the company maintains a strong liquidity position with over $1 billion in cash, cash equivalents, and marketable securities [Overview and Key Business Metrics](index=31&type=section&id=Overview%20and%20Key%20Business%20Metrics) The company's revenue grew 20% YoY for the six months ended June 30, 2024, with the number of customers with over $5,000 in ARR increasing by 14% to 21,744, but the net dollar retention rate decreased to 106% from 108% in the prior year, primarily due to lower expansion within existing customers driven by macroeconomic pressures, partially offset by the addition of Device42 Key Business Metrics as of June 30 | Metric | 2024 | 2023 | % Growth | | :--- | :--- | :--- | :--- | | Customers with >$5,000 in ARR | 21,744 | 19,105 | 14% | | ARR from customers >$5,000 as % of total ARR | 90% | 88% | N/A | | Net dollar retention rate | 106% | 108% | N/A | - The decrease in net dollar retention rate from **108%** to **106%** was primarily due to lower expansion within existing customers, attributed to macroeconomic pressures[40](index=40&type=chunk) - Macroeconomic uncertainties, including inflation and geopolitical developments, have adversely impacted the net dollar retention rate and may continue to affect demand for the company's products[39](index=39&type=chunk) [Results of Operations](index=37&type=section&id=Results%20of%20Operations) For Q2 2024, revenue increased 20% YoY to $174.1 million, with subscription and related services growing 21% and gross margin improving to 84% from 83%, while operating expenses rose 16% to $189.7 million, driven by higher personnel costs and marketing spend, and for the six-month period, revenue also grew 20% to $339.3 million, with operating expenses increasing 11%, and a tax benefit of $14.3 million from the Device42 acquisition significantly impacted the provision for income taxes Revenue Comparison - Q2 2024 vs Q2 2023 (in thousands) | Revenue Type | Q2 2024 | Q2 2023 | Change $ | Change % | | :--- | :--- | :--- | :--- | :--- | | Subscription, licenses, maintenance | $171,604 | $141,699 | $29,905 | 21% | | Professional services | $2,527 | $3,380 | $(853) | (25)% | | **Total revenue** | **$174,131** | **$145,079** | **$29,052** | **20%** | - The increase in Q2 2024 revenue was driven by **$10.9 million** from existing customers and **$18.2 million** from new customers acquired in the last twelve months, including Device42[311](index=311&type=chunk) - For the six months ended June 30, 2024, the company recorded an income tax benefit of **$6.4 million**, compared to a **$7.6 million** expense in the prior year, primarily due to a **$14.3 million** tax benefit from the Device42 acquisition[330](index=330&type=chunk)[236](index=236&type=chunk) [Liquidity and Capital Resources](index=42&type=section&id=Liquidity%20and%20Capital%20Resources) As of June 30, 2024, the company had a strong liquidity position with $310.3 million in cash and cash equivalents and $708.8 million in marketable securities, and management believes existing cash and marketable securities are sufficient to meet working capital and capital expenditure needs for at least the next 12 months, with operating activities generating $77.0 million in cash for the first six months of 2024, a significant increase from $31.4 million in the same period of 2023 - The company holds **$310.3 million** in cash and cash equivalents and **$708.8 million** in marketable securities as of June 30, 2024[302](index=302&type=chunk) - Net cash from operating activities for the first six months of 2024 was **$77.0 million**, up from **$31.4 million** in the prior year, driven by improved net loss and non-cash adjustments like stock-based compensation[354](index=354&type=chunk)[332](index=332&type=chunk) - Principal commitments consist of operating leases for office space and contractual obligations under third-party cloud infrastructure and service subscription agreements[6](index=6&type=chunk) [ITEM 3. Quantitative and Qualitative Disclosures about Market Risk](index=45&type=section&id=ITEM%203.%20Quantitative%20and%20Qualitative%20Disclosures%20about%20Market%20Risk) The company is exposed to market risks from fluctuations in foreign currency exchange rates and interest rates, with primary foreign currency exposures to the Indian Rupee, British Pound, and Euro, and to mitigate this risk, the company uses foreign exchange forward contracts, with a total notional amount of $61.6 million outstanding as of June 30, 2024, while interest rate risk affects investment income and the fair value of its marketable securities portfolio, but a hypothetical 100 basis point change in rates is not expected to have a material effect - The company's primary market risk exposures are from foreign currency exchange rates (particularly INR, GBP, EUR) and interest rates[9](index=9&type=chunk) - To hedge against foreign currency risk, the company entered into foreign exchange forward contracts with a total notional amount of **$61.6 million** as of June 30, 2024[10](index=10&type=chunk) - The company's investment portfolio, consisting of cash, cash equivalents, and marketable securities, is subject to interest rate risk, but management does not believe a **100 basis point** change would have a material impact[11](index=11&type=chunk)[362](index=362&type=chunk) [ITEM 4. Controls and Procedures](index=45&type=section&id=ITEM%204.%20Controls%20and%20Procedures) Management, including the CEO and CFO, concluded that the company's disclosure controls and procedures were effective as of June 30, 2024, and consistent with SEC guidance, the evaluation of internal control over financial reporting excluded the recently acquired Device42, which represented less than 2% of consolidated total assets and revenues for the quarter, with the company currently integrating Device42's internal controls - The principal executive and financial officers concluded that disclosure controls and procedures were effective as of the end of the period[341](index=341&type=chunk) - Management's evaluation of internal controls excluded the recently acquired Device42, as permitted by SEC guidance, with Device42 constituting **less than 2%** of total assets and revenues for the quarter[13](index=13&type=chunk) - There were no material changes in internal control over financial reporting during the most recent fiscal quarter[342](index=342&type=chunk) PART II. OTHER INFORMATION [ITEM 1. Legal Proceedings](index=47&type=section&id=ITEM%201.%20Legal%20Proceedings) The company is involved in a securities class action lawsuit and a related stockholder derivative complaint concerning alleged misstatements in its IPO offering documents, and the company intends to vigorously defend against these claims and does not currently believe any pending legal proceedings will have a material adverse impact - The company is subject to a securities class action complaint and a stockholder derivative complaint related to its IPO, which it intends to defend vigorously[164](index=164&type=chunk)[33](index=33&type=chunk) - Information regarding legal proceedings is incorporated by reference from Note 9 of the financial statements[16](index=16&type=chunk) [ITEM 1A. Risk Factors](index=47&type=section&id=ITEM%201A.%20Risk%20Factors) There have been no material changes from the risks and uncertainties previously disclosed in the company's Annual Report on Form 10-K for the fiscal year ended December 31, 2023 - The company states there have been no material changes to the risk factors disclosed in its 2023 Annual Report on Form 10-K[344](index=344&type=chunk) [ITEM 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=47&type=section&id=ITEM%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) On June 6, 2024, the company issued 686,812 shares of Class A common stock to the founder of Device42 and his affiliates as part of the acquisition consideration, with this issuance not registered under the Securities Act, as it was exempt as a transaction not involving a public offering - In connection with the Device42 acquisition, the company issued **686,812 shares** of Class A common stock in an unregistered sale, exempt from registration under Section 4(a)(2) of the Securities Act[345](index=345&type=chunk) [ITEM 5. Other Information](index=47&type=section&id=ITEM%205.%20Other%20Information) During the second quarter of 2024, two company officers, the Chief Product Officer and the Chief Financial Officer, adopted Rule 10b5-1 trading plans for the future sale of company securities Adoption of Rule 10b5-1 Trading Plans | Name | Title | Adoption Date | Total Securities to be Sold | | :--- | :--- | :--- | :--- | | Srinivasagopalan Ramamurthy | Chief Product Officer | June 14, 2024 | Up to 400,000 shares | | Tyler Sloat | Chief Financial Officer | June 6, 2024 | Up to 500,000 shares | [ITEM 6. Exhibits](index=49&type=section&id=ITEM%206.%20Exhibits) This section lists the exhibits filed with the Quarterly Report on Form 10-Q, including certifications from the CEO and CFO, and XBRL data files - The report includes various exhibits, such as the CEO and CFO certifications pursuant to the Sarbanes-Oxley Act (Exhibits 31.1, 31.2, 32.1, 32.2) and XBRL interactive data files[21](index=21&type=chunk)[350](index=350&type=chunk)[371](index=371&type=chunk) [SIGNATURES](index=50&type=section&id=SIGNATURES) The report was duly signed on July 30, 2024, by Dennis Woodside, Chief Executive Officer and President, and Tyler Sloat, Chief Financial Officer - The Form 10-Q was signed on July 30, 2024, by the company's Chief Executive Officer and Chief Financial Officer[352](index=352&type=chunk)[376](index=376&type=chunk)

Freshworks Q2 2024 Earnings Release [Second Quarter 2024 Financial Highlights](index=1&type=section&id=Second%20Quarter%202024%20Financial%20Summary%20Results) Freshworks achieved solid Q2 2024 results with 20% revenue growth to $174.1 million, narrowing GAAP net loss, and significantly increased cash flows - CEO Dennis Woodside highlighted the company's **increasing financial discipline** and ability to meet customer needs with **AI-powered solutions**, positioning Freshworks to seize a massive market opportunity[24](index=24&type=chunk) Q2 2024 Key Financial Results (vs. Q2 2023) | Financial Metric | Q2 2024 | Q2 2023 | Change | | :--- | :--- | :--- | :--- | | **Total Revenue** | $174.1M | $145.1M | +20% YoY | | **GAAP Loss from Operations** | $(43.8)M | $(43.3)M | +1.2% | | **Non-GAAP Income from Operations** | $13.1M | $11.7M | +12.0% | | **GAAP Net Loss Per Share** | $(0.07) | $(0.12) | Improved | | **Non-GAAP Net Income Per Share** | $0.08 | $0.07 | +14.3% | | **Net Cash from Operating Activities** | $36.3M | $19.9M | +82.4% | | **Free Cash Flow** | $32.8M | $18.1M | +81.2% | - As of June 30, 2024, the company maintained a strong liquidity position with cash, cash equivalents, and marketable securities totaling **$1.02 billion**[5](index=5&type=chunk) [Second Quarter Key Metrics and Recent Business Highlights](index=2&type=section&id=Second%20Quarter%20Key%20Metrics%20and%20Recent%20Business%20Highlights) Freshworks increased high-value customers by 14% to 21,744, maintained a 106% net dollar retention rate, and completed the Device42 acquisition while expanding AI capabilities Q2 2024 Key Operating Metrics | Metric | Q2 2024 | YoY Change | | :--- | :--- | :--- | | Customers with >$5,000 ARR | 21,744 | +14% | | Net Dollar Retention Rate | 106% | (vs. 108% in Q2 2023) | - Significant business developments in the quarter include: Completed the acquisition of **Device42** on June 6, 2024, to bolster IT offerings; expanded global infrastructure by launching a new **AWS-powered data center in the UAE**; grew adoption of AI tools, with over **1,200 customers** using Freddy Copilot and **900** using Freddy Self Service; and welcomed new customers such as **Kayak**, **Paul Smith UK**, and **San Diego Unified School District**[28](index=28&type=chunk) [Financial Outlook](index=3&type=section&id=Financial%20Outlook) Freshworks forecasts continued revenue growth for Q3 and full-year 2024, projecting 17-19% and 18.5-19.5% YoY growth, with positive non-GAAP income Q3 2024 and Full Year 2024 Financial Outlook | ($ in millions, except per share data) | Third Quarter 2024 | Full Year 2024 | | :--- | :--- | :--- | | **Revenue** | $180.0 - $183.0 | $707.0 - $713.0 | | **Year-over-year growth** | 17% - 19% | 18.5% - 19.5% | | **Non-GAAP income from operations** | $13.0 - $15.0 | $60.0 - $66.0 | | **Non-GAAP net income per share** | $0.07 - $0.08 | $0.32 - $0.34 | - The financial estimates for Q3 and the full year 2024 include the expected results from the recently acquired **Device42, Inc.**[7](index=7&type=chunk) [Consolidated Financial Statements](index=8&type=section&id=Consolidated%20Financial%20Statements) This section presents the unaudited condensed consolidated financial statements for Q2 2024, including statements of operations, balance sheets, and cash flows [Condensed Consolidated Statements of Operations](index=8&type=section&id=CONDENSED%20CONSOLIDATED%20STATEMENTS%20OF%20OPERATIONS) Q2 2024 revenue increased to $174.1 million, with gross profit at $146.0 million, resulting in a GAAP operating loss of $(43.8) million and a net loss of $(20.2) million Q2 2024 vs. Q2 2023 Statement of Operations (in thousands) | Line Item | Q2 2024 | Q2 2023 | | :--- | :--- | :--- | | Revenue | $174,131 | $145,079 | | Gross Profit | $145,956 | $120,218 | | Total Operating Expenses | $189,743 | $163,507 | | Loss from Operations | $(43,787) | $(43,289) | | Net Loss | $(20,184) | $(35,658) | [Condensed Consolidated Balance Sheets](index=9&type=section&id=CONDENSED%20CONSOLIDATED%20BALANCE%20SHEETS) As of June 30, 2024, Freshworks reported total assets of **$1.54 billion**, total liabilities of **$428.5 million**, and total stockholders' equity of **$1.12 billion**, reflecting the Device42 acquisition Key Balance Sheet Items (in thousands) as of June 30, 2024 | Account | Amount | | :--- | :--- | | Cash and cash equivalents | $310,266 | | Marketable securities | $708,848 | | Total Assets | $1,543,584 | | Total Liabilities | $428,485 | | Total Stockholders' Equity | $1,115,099 | [Condensed Consolidated Statements of Cash Flows](index=10&type=section&id=CONDENSED%20CONSOLIDATED%20STATEMENTS%20OF%20CASH%20FLOWS) Q2 2024 net cash from operating activities increased to $36.3 million, while investing activities used $(182.7) million, primarily for a business acquisition, and financing activities used $(11.4) million Cash Flow Summary for Q2 2024 vs. Q2 2023 (in thousands) | Cash Flow Activity | Q2 2024 | Q2 2023 | | :--- | :--- | :--- | | Net cash provided by operating activities | $36,336 | $19,895 | | Net cash provided by (used in) investing activities | $(182,724) | $2,800 | | Net cash used in financing activities | $(11,364) | $(10,952) | - The significant cash outflow in investing activities was due to the acquisition of a business, net of cash acquired, for **$213.9 million**[20](index=20&type=chunk) [Reconciliation of GAAP to Non-GAAP Measures](index=11&type=section&id=RECONCILIATION%20OF%20SELECTED%20GAAP%20MEASURES%20TO%20NON-GAAP%20MEASURES) This section details the reconciliation of Q2 2024 GAAP to non-GAAP financial measures, showing adjustments from GAAP operating loss to non-GAAP income and GAAP net loss to non-GAAP net income Reconciliation of GAAP Operating Loss to Non-GAAP Operating Income (Q2 2024, in thousands) | Description | Amount | | :--- | :--- | | **GAAP loss from operations** | **$(43,787)** | | Stock-based compensation expense | $55,139 | | Employer payroll taxes on employee stock transactions | $785 | | Amortization of acquired intangibles | $976 | | **Non-GAAP income from operations** | **$13,113** | Reconciliation of GAAP Net Loss to Non-GAAP Net Income (Q2 2024, in thousands) | Description | Amount | | :--- | :--- | | **GAAP net loss** | **$(20,184)** | | Stock-based compensation expense | $55,139 | | Other adjustments (payroll taxes, amortization) | $1,761 | | Income tax adjustments | $(13,729) | | **Non-GAAP net income** | **$22,987** | Reconciliation of GAAP to Non-GAAP EPS (Q2 2024) | Description | Amount | | :--- | :--- | | **GAAP net loss per share - diluted** | **$(0.07)** | | Non-GAAP adjustments per share | $0.15 | | **Non-GAAP net income per share - diluted** | **$0.08** | [Explanation of Non-GAAP Financial Measures and Operating Metrics](index=4&type=section&id=Explanation%20of%20Non-GAAP%20Financial%20Measures) Freshworks uses non-GAAP measures to provide clearer operational performance insights by excluding non-cash expenses, and tracks key operating metrics like Net Dollar Retention Rate for business health - The primary purpose of using non-GAAP measures is to facilitate **period-to-period comparisons** and evaluate performance against other industry companies by eliminating certain variable or **non-cash items**[10](index=10&type=chunk) - Key items excluded from GAAP measures to arrive at non-GAAP figures include: **Stock-based compensation expense**, **Amortization of acquired intangibles**, and **Employer payroll taxes on employee stock transactions**[12](index=12&type=chunk)[13](index=13&type=chunk)[34](index=34&type=chunk) - Free cash flow is defined as net cash from operating activities minus purchases of property and equipment and capitalized internal-use software, used as an indicator of **liquidity** and cash available for **strategic initiatives**[35](index=35&type=chunk) [Forward-Looking Statements](index=6&type=section&id=Forward-Looking%20Statements) This section provides a standard safe harbor disclaimer for forward-looking statements, including financial outlook, which are subject to risks and uncertainties that may cause actual results to differ materially - Forward-looking statements pertain to the company's **financial outlook**, the **value of its products**, and the results of **product innovation efforts**[38](index=38&type=chunk) - Investors are warned not to place undue reliance on these statements as they are subject to **risks** including **global economic conditions**, **customer retention**, and the ability to **manage growth**[16](index=16&type=chunk)[38](index=38&type=chunk)

"Freshworks delivered a solid Q2, growing revenue to $174.1 million with a free cash flow margin of 19%," said Dennis Woodside, CEO & President of Freshworks. "Our results reflect our increasing financial discipline and our ability to meet the needs of customers with our AI-powered solutions. With clear strategic priorities in place, we are well positioned to seize the massive opportunity in front of us." Revenue: Total revenue was $174.1 million, representing growth of 20% compared to the second quarter of ...

Data by YCharts The bull case for Freshworks Freshworks portfolio (Freshworks Q1 earnings deck) Freshworks customers (Freshworks Q1 earnings deck) Valuation advantage And for next year FY25, Wall Street analysts have a consensus revenue target of $821.5 million for the company, representing 17% y/y growth. This puts Freshworks' valuation multiples at: Data by YCharts Despite the sharp YTD drop, we can find no major red flags in Freshworks' financials. Freshworks net revenue retention trends (Freshworks Q1 e ...

Return on AI: Productivity gains equivalent to a month each year Freshworks' survey found knowledge workers are achieving impressive productivity gains from using AI at work. Employees estimate that using AI helps them reduce their existing workload by 3 hours and 47 minutes in a typical work week, by helping them complete tasks such as summarizing issues and suggesting the next steps to handling repetitive tasks. By freeing up nearly 24 business days – or just over one month of work per year – employees ca ...

Nearly all (95%) senior leaders (defined as manager level and above) using AI say their departments are measuring the business impact AI brings to their organization. Many report productivity improvement (52%), better quality of work (47%), and improved customer engagement (34%). Still, 37% of workers admit they don't have good metrics for measuring productivity in their organization. Freshworks' survey also revealed more workers are using – and benefiting from – AI than they even realize. Almost half (40%) ...

"We are thrilled to further strengthen our presence in MEA with the new data center in UAE," said Abe Smith, Chief of Global Field Operations at Freshworks. "This investment demonstrates our dedication to supporting the growth and digital transformation of businesses in the region. With our data center, companies requiring regional data compliance within the UAE can depend on us for business software in Customer Service, IT, and Sales and Marketing. Freshworks will be partnering with AWS in joint go-to-mark ...