Freshworks (FRSH) recently announced that it has inked a multi-year strategic collaboration agreement with Amazon Web Services (“AWS”). This collaboration, set to kick off in early 2024, aims to elevate Freshworks' capabilities by offering its comprehensive suite of solutions as Software-as-a-Service (SaaS) through the AWS Marketplace.The AWS Marketplace serves as a digital hub, hosting thousands of software listings from independent software vendors (ISVs). With this collaboration, Freshworks aims to provi ...

SAN MATEO, Calif., Jan. 29, 2024 (GLOBE NEWSWIRE) -- Freshworks Inc. (NASDAQ:FRSH) announced today that it has signed a multi-year Strategic Collaboration Agreement (SCA) with Amazon Web Services (AWS) to develop and expand Freshworks' capabilities on AWS. The agreement is set to commence in early 2024, with Freshworks' platform and full suite of solutions becoming available as Software-as-a-Service (SaaS) offerings in AWS Marketplace, a digital catalog with thousands of software listings from independent s ...

champpixs/iStock via Getty Images Investment Thesis Freshworks (NASDAQ:FRSH) is a relatively new entrant in the Customer Relationship Management (CRM) industry. The company was listed in the markets in 2021, but like most of the younger companies on the market, it received a rude awakening in 2022 as the markets re-rated the equity risk premiums and cash flows needed to be prioritized. Last year, the company unveiled its multi-year operating plan in its Investor Day presentation, showcasing its product ...

SAN MATEO, Calif., Jan. 09, 2024 (GLOBE NEWSWIRE) -- Freshworks Inc. (NASDAQ:FRSH) will announce its financial results for the fourth quarter and full year ended December 31, 2023 following the close of market on Tuesday, February 6, 2024. 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 2023 Financial Results Date: Tuesday, Feb ...

Freshworks (FRSH) recently announced an integration with Zuper, which will help it enhance customer relationships and experiences for businesses with field service teams. Zuper’s direct integration with Freshdesk will smoothen up seamless data flow and sharing without the need to switch platforms.The Freshworks-Zuper integration is now available on the Freshworks Marketplace, which is powered by the Freshworks Neo platform. The platform allows developers to easily build and publish apps that integrate with ...

Freshworks (FRSH) shares have jumped 30.4% in the past six months, outperforming the Zacks Computer & Technology sector’s return of 7.9%. It has been benefiting from a strong portfolio that helped in attracting new clients.In third-quarter 2023, Freshworks reported revenues of $153.6 million, up 19% year over year. The number of customers contributing more than $5,000 in annual recurring revenues was 19,551, up 17% year over year.Freshworks has expanded its portfolio with the launch of an AI-powered Custome ...

Freshworks' (FRSH) trajectory has changed course drastically since it brought in a new president 15 months ago. The software maker overhauled its go-to-market strategy in an effort to nail bigger deals in a new market, and FRSH stock is up 66% this year as a result.X Started in India in 2010, Freshworks launched its initial public offering in September 2021. The IPO raised more than $1 billion, buoying India's high-tech industry. Shares traded up the first day but soon nose-dived before touching bottom in J ...

Core Insights - Freshworks Inc. has reported significant growth in its customer engagement tools, with Freshsales experiencing a 24% increase and Freshdesk achieving a 58% increase in customer satisfaction [1] Group 1: Company Performance - Freshworks Inc. (NASDAQ: FRSH) has announced a partnership with Lalamove to enhance its customer engagement solutions through Freshdesk and Freshsales [1] - The partnership aims to improve customer experience by integrating Lalamove's logistics services with Freshworks' CRM tools [1] - Freshworks serves over 65,000 customers, including notable companies like American Express and Databricks [2] Group 2: Product Development - The collaboration with Lalamove will utilize Freshworks' Unified Customer Record (UCR) to provide a comprehensive view of customer interactions [1] - Freshsales and Freshdesk are designed to streamline customer engagement processes, contributing to the reported increases in customer satisfaction [1] - The integration is expected to enhance operational efficiency and customer service capabilities for Lalamove [1]

PART I [PART I. FINANCIAL INFORMATION](index=6&type=section&id=PART%20I.%20FINANCIAL%20INFORMATION) Presents Freshworks Inc.'s unaudited condensed consolidated financial statements and management's discussion for the period ended September 30, 2023 [Item 1. Financial Statements (unaudited)](index=6&type=section&id=ITEM%201.%20Financial%20Statements%20(unaudited)) Presents Freshworks Inc.'s unaudited condensed consolidated financial statements for Q3 2023, including Balance Sheets, Statements of Operations, and Cash Flows [Condensed Consolidated Balance Sheets](index=6&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) Summarizes Freshworks Inc.'s financial position as of September 30, 2023, detailing assets, liabilities, and stockholders' equity Balance Sheet Summary (in thousands) | Account | Sep 30, 2023 | Dec 31, 2022 | | :--- | :--- | :--- | | **Total current assets** | $1,319,501 | $1,277,010 | | **Total assets** | **$1,418,088** | **$1,380,216** | | **Total current liabilities** | $305,721 | $271,692 | | **Total liabilities** | **$359,604** | **$328,398** | | **Total stockholders' equity** | **$1,058,484** | **$1,051,818** | [Condensed Consolidated Statements of Operations](index=7&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) Details Freshworks Inc.'s financial performance for the three and nine months ended September 30, 2023, including revenue, gross profit, and net loss Statement of Operations Summary (in thousands, except per share data) | Metric | Three Months Ended Sep 30, 2023 | Three Months Ended Sep 30, 2022 | Nine Months Ended Sep 30, 2023 | Nine Months Ended Sep 30, 2022 | | :--- | :--- | :--- | :--- | :--- | | **Revenue** | $153,550 | $128,760 | $436,321 | $364,829 | | **Gross Profit** | $127,287 | $104,581 | $359,961 | $294,213 | | **Loss from operations** | $(38,735) | $(58,288) | $(130,131) | $(172,764) | | **Net loss** | **$(31,033)** | **$(57,843)** | **$(109,355)** | **$(176,655)** | | **Net loss per share** | $(0.11) | $(0.20) | $(0.37) | $(0.62) | [Condensed Consolidated Statements of Cash Flows](index=11&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Outlines Freshworks Inc.'s cash inflows and outflows from operating, investing, and financing activities for the nine months ended September 30, 2023 Cash Flow Summary (in thousands) | Cash Flow Activity | Nine Months Ended Sep 30, 2023 | Nine Months Ended Sep 30, 2022 | | :--- | :--- | :--- | | **Net cash provided by (used in) operating activities** | $55,312 | $(9,692) | | **Net cash provided by (used in) investing activities** | $146,280 | $(161,074) | | **Net cash used in financing activities** | $(47,409) | $(144,716) | | **Net increase (decrease) in cash** | $154,183 | $(315,482) | | **Cash, cash equivalents and restricted cash, end of period** | $458,341 | $432,382 | [Notes to Condensed Consolidated Financial Statements](index=13&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) Provides detailed explanations of accounting policies and financial data, covering revenue recognition, marketable securities, and stock-based compensation Disaggregation of Revenue (in thousands) | Service Offering | Three Months Ended Sep 30, 2023 | Nine Months Ended Sep 30, 2023 | | :--- | :--- | :--- | | Subscription services | $150,033 | $425,755 | | Professional services | $3,517 | $10,566 | | **Total revenue** | **$153,550** | **$436,321** | - As of September 30, 2023, the company had **$375.8 million** in remaining performance obligations, of which **$285.0 million** is expected to be recognized as revenue in the next 12 months[55](index=55&type=chunk) Stock-Based Compensation Expense (in thousands) | Expense Category | Three Months Ended Sep 30, 2023 | Nine Months Ended Sep 30, 2023 | | :--- | :--- | :--- | | Cost of revenue | $1,710 | $5,137 | | Research and development | $9,623 | $28,662 | | Sales and marketing | $18,757 | $51,786 | | General and administrative | $25,035 | $74,482 | | **Total** | **$55,125** | **$160,067** | - As of September 30, 2023, total unrecognized stock-based compensation expense was **$458.4 million**, expected to be recognized over a weighted-average period of approximately **2.8 years** for RSUs/PRSUs and **2.9 years** for stock options[94](index=94&type=chunk) Revenue by Geographic Location (in thousands) | Region | Three Months Ended Sep 30, 2023 | Nine Months Ended Sep 30, 2023 | | :--- | :--- | :--- | | North America | $68,847 | $194,158 | | Europe, Middle East and Africa | $59,128 | $168,332 | | Asia Pacific | $21,111 | $61,497 | | Other | $4,464 | $12,334 | | **Total revenue** | **$153,550** | **$436,321** | [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=29&type=section&id=ITEM%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses Q3 2023 financial performance, highlighting 19% revenue growth, improved operating losses, and positive free cash flow [Overview and Key Business Metrics](index=29&type=section&id=Overview%20and%20Key%20Business%20Metrics) Freshworks' Q3 2023 revenue grew 19% to **$153.6 million**, with narrowed operating loss, tracking key metrics like large customers and net dollar retention Key Business Metrics | Metric | Sep 30, 2023 | Sep 30, 2022 | % Growth | | :--- | :--- | :--- | :--- | | Customers contributing >$5,000 in ARR | 19,551 | 16,713 | 17% | | Net dollar retention rate | 108% | 107% | N/A | - On a constant currency basis, the net dollar retention rate was **106%** as of September 30, 2023, a decrease from **107%** a year prior, primarily due to lower expansion within existing customers driven by macroeconomic pressures[116](index=116&type=chunk) [Non-GAAP Financial Measures](index=31&type=section&id=Non-GAAP%20Financial%20Measures) The company utilizes non-GAAP measures like non-GAAP income from operations and free cash flow to assess performance, reporting positive results for Q3 2023 Reconciliation of GAAP to Non-GAAP Income (Loss) from Operations (in thousands) | Metric | Three Months Ended Sep 30, 2023 | Three Months Ended Sep 30, 2022 | | :--- | :--- | :--- | | Loss from operations (GAAP) | $(38,735) | $(58,288) | | Stock-based compensation expense | $55,125 | $53,892 | | Other adjustments | $1,008 | $1,270 | | **Non-GAAP income (loss) from operations** | **$17,398** | **$(3,126)** | Reconciliation to Free Cash Flow (in thousands) | Metric | Three Months Ended Sep 30, 2023 | Three Months Ended Sep 30, 2022 | | :--- | :--- | :--- | | Net cash provided by (used in) operating activities | $23,913 | $(4,223) | | Less: Purchases of property and equipment | $(278) | $(1,907) | | Less: Capitalized internal-use software | $(1,564) | $(1,106) | | **Free cash flow** | **$22,071** | **$(7,236)** | [Results of Operations](index=35&type=section&id=Results%20of%20Operations) Compares Q3 2023 and 2022 financial results, showing 19% revenue growth, improved gross margin, and controlled operating expense increases - Q3 2023 revenue increased by **$24.8 million (19%)** YoY, with **$16.2 million** from new customers and **$8.6 million** from existing customers[144](index=144&type=chunk) - Gross margin for Q3 2023 increased to **83%** from **81%** in Q3 2022, reflecting benefits from economies of scale and cost structure improvements[145](index=145&type=chunk)[146](index=146&type=chunk) - Total operating expenses for Q3 2023 increased by only **2%** YoY, primarily due to a **4%** rise in Sales and Marketing costs, while Research and Development expenses decreased by **3%**[147](index=147&type=chunk) [Liquidity and Capital Resources](index=40&type=section&id=Liquidity%20and%20Capital%20Resources) Freshworks held **$1.16 billion** in cash and marketable securities as of September 30, 2023, generating **$55.3 million** in operating cash flow for the nine months - The company's cash, cash equivalents, and marketable securities totaled approximately **$1.16 billion** as of September 30, 2023[164](index=164&type=chunk) - For the nine months ended September 30, 2023, net cash provided by operating activities was **$55.3 million**, a significant improvement from a net cash use of **$9.7 million** in the same period of 2022[169](index=169&type=chunk)[170](index=170&type=chunk)[171](index=171&type=chunk) [Item 3. Quantitative and Qualitative Disclosures about Market Risk](index=43&type=section&id=ITEM%203.%20Quantitative%20and%20Qualitative%20Disclosures%20about%20Market%20Risk) The company faces market risks from foreign currency and interest rate fluctuations, using forward contracts to hedge Indian Rupee exposure - The company's primary foreign currency exposures are to the Indian Rupee, British Pound, and Euro[186](index=186&type=chunk) - To mitigate currency risk, the company entered into foreign exchange forward contracts to hedge a portion of forecasted expenses in Indian Rupee, with a total notional amount of **$49.4 million** outstanding as of September 30, 2023[187](index=187&type=chunk) - A sensitivity analysis indicates that a hypothetical **10%** adverse change in foreign currency rates or a **100 basis point** movement in interest rates would not have a material effect on the company's financial statements[189](index=189&type=chunk)[191](index=191&type=chunk) [Item 4. Controls and Procedures](index=44&type=section&id=ITEM%204.%20Controls%20and%20Procedures) Management concluded that disclosure controls and procedures were effective as of September 30, 2023, with no material changes to internal controls - The Principal Executive Officer and Principal Financial Officer concluded that the company's disclosure controls and procedures are effective[192](index=192&type=chunk) - No changes were identified in the company's internal control over financial reporting during the most recent fiscal quarter that have materially affected, or are reasonably likely to materially affect, internal controls[193](index=193&type=chunk) PART II [PART II. OTHER INFORMATION](index=45&type=section&id=PART%20II.%20OTHER%20INFORMATION) Details legal proceedings, risk factors, and other significant information not covered in the financial statements [Item 1. Legal Proceedings](index=45&type=section&id=ITEM%201.%20Legal%20Proceedings) The company faces securities class action and stockholder derivative complaints related to IPO disclosures, which it intends to vigorously defend - A securities class action complaint was filed on November 1, 2022, alleging violations of the Securities Act of 1933 in connection with the IPO[196](index=196&type=chunk) - A stockholder derivative complaint was filed on March 20, 2023, based on similar allegations as the class action, and this case has been stayed pending the securities class action[197](index=197&type=chunk) [Item 1A. Risk Factors](index=45&type=section&id=ITEM%201A.%20Risk%20Factors) No material changes to the company's previously disclosed risk factors were reported in the current quarter - The company states there have been no material changes to the risks and uncertainties previously disclosed in its Q1 2023 Form 10-Q[199](index=199&type=chunk) [Item 5. Other Information](index=46&type=section&id=ITEM%205.%20Other%20Information) Discloses adoption of Rule 10b5-1 trading plans by officers and directors, and the departure of the Chief Marketing Officer Rule 10b5-1 Trading Plan Adoptions (Q3 2023) | Name | Title | Adoption Date | Total Securities to be Sold | | :--- | :--- | :--- | :--- | | Tyler Sloat | Chief Financial Officer | Sep 6, 2023 | Up to 400,000 shares | | Sameer Gandhi | Director | Sep 19, 2023 | Up to 100,000 shares | | Barry Padgett | Director | Sep 14, 2023 | Up to 38,356 shares | - Stacey Epstein, the company's former Chief Marketing Officer, departed the company on September 15, 2023[205](index=205&type=chunk)

Freshworks Inc. (NASDAQ:FRSH) Q2 2023 Earnings Conference Call August 1, 2023 5:00 PM ET Corporate Participants Joon Huh - Vice President of Investor Relations Girish Mathrubootham - Chief Executive Officer Dennis Woodside - President Tyler Sloat - Chief Financial Officer Conference Call Participants Brent Bracelin - Piper Sandler Ryan MacWilliams - Barclays Pinjalim Bora - JPMorgan Brian Peterson - Raymond James Patrick Walravens - JMP Securities DJ Hynes - Canaccord Genuity Elizabeth Porter - Morgan Stanl ...