This presentation contains "forward-looking" statements within the Private Securities Litigation Reform Act of 1995 that are based on our management's current expectations and projections about anticipated future events and financial trends that we believe may affect our financial condition, results of operations, business strategy, short-term and long-term business operations and objectives and financial needs. Other than statements of historical facts, all statements contained in this presentation, includ ...

Freshworks forecast annual revenue above Wall Street estimates on Tuesday, betting on growing adoption of its software tools that incorporate artificial intelligence to automate customer support and I... ...

Core Insights - Freshworks Inc. reported strong financial results for Q4 and fiscal year 2025, exceeding revenue and operating margin guidance, with a year-over-year revenue growth of 16% [1][5][8] - The company’s EX business achieved over $500 million in annual recurring revenue, indicating significant growth in this segment [1] Financial Performance - **Q4 2025 Results**: Total revenue reached $222.7 million, a 14% increase from $194.6 million in Q4 2024. Adjusted for constant currency, the growth was 13% [5][37] - **Operating Income**: GAAP income from operations was $39.7 million, with an operating margin of 17.8%, compared to a loss of $23.8 million and a margin of (12.2)% in Q4 2024 [5][37] - **Net Income**: GAAP diluted net income per share was $0.67, up from a loss of $(0.07) in Q4 2024 [5][9] - **Cash Flow**: Net cash provided by operating activities was $62.3 million, representing a margin of 28.0%, compared to $41.4 million and a margin of 21.3% in Q4 2024 [5][9] Full Year 2025 Summary - **Total Revenue**: For the full year, revenue was $838.8 million, a 16% increase from $720.4 million in 2024 [5][37] - **Operating Income**: GAAP income from operations was $13.2 million, with a margin of 1.6%, compared to a loss of $(138.6) million and a margin of (19.2)% in 2024 [5][37] - **Non-GAAP Income**: Non-GAAP income from operations was $178.0 million, with a margin of 21.2%, up from $99.1 million and a margin of 13.8% in 2024 [5][37] Customer Metrics and Business Highlights - The number of customers contributing more than $5,000 in annual recurring revenue (ARR) increased by 10% year-over-year to 24,762 [10] - The net dollar retention rate improved to 108%, compared to 105% in Q3 2025 and 103% in Q4 2024 [10] - Freshworks announced the acquisition of FireHydrant to enhance its IT Service Management offerings [10] - New product capabilities were launched, including Freshdesk Command Center and Freddy AI Insights, aimed at improving customer experience [10] Financial Outlook - For Q1 2026, Freshworks expects revenue between $222.0 million and $225.0 million, with year-over-year growth of 13% to 15% [8] - For the full year 2026, revenue is projected to be between $952.0 million and $960.0 million, with growth of 13.5% to 14.5% [8]

Core Insights - Freshworks Inc. has a strong track record of exceeding earnings estimates, with an average surprise of 36.54% over the past two quarters [1] Earnings Performance - In the most recent quarter, Freshworks reported earnings of $0.16 per share, surpassing the expected $0.13 per share by 23.08% [2] - For the previous quarter, the company reported $0.18 per share against an expectation of $0.12 per share, resulting in a surprise of 50.00% [2] Earnings Estimates and Predictions - Estimates for Freshworks have been trending upward, supported by its history of earnings surprises [5] - The company currently has an Earnings ESP of +6.67%, indicating a positive outlook from analysts regarding its earnings prospects [8] - The combination of a positive Earnings ESP and a Zacks Rank of 3 (Hold) suggests a high likelihood of another earnings beat in the upcoming report [8] Statistical Insights - Research indicates that stocks with a positive Earnings ESP and a Zacks Rank of 3 or better have a nearly 70% chance of producing a positive surprise [6] - The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate, reflecting the latest analyst revisions [7]

Group 1 - Piper Sandler downgraded ratings for three enterprise software stocks: Adobe, Freshworks, and Vertex, from "Overweight" to "Neutral" and significantly reduced their target prices to $330, $12, and $20 respectively [1] - The rationale for the bearish outlook includes concerns that AI-driven efficiency will suppress or reduce employee growth, negatively impacting software companies that charge per seat [1] - The report anticipates that 2026 will mark the fifth consecutive year of slowing growth in the software industry, leading to valuation downgrades for companies on their coverage list [1] Group 2 - Target prices were also lowered for several other companies including Amplitude, Asana, BlackLine, Braze, Figma, HubSpot, Salesforce, Oracle, Klaviyo, monday.com, ServiceTitan, and ZoomInfo [2] - Despite the overall pessimism in the software sector, Piper Sandler remains optimistic about Microsoft and ServiceTitan, naming them as top picks for 2026 [2] - The analysis suggests that Microsoft is potentially the best pure play in the current AI application space, with positive sentiment emerging from CIO surveys regarding Azure and Copilot activities [2]

Group 1 - Freshworks Inc. (NASDAQ:FRSH) is recognized as a strong software application stock by hedge funds, with Wells Fargo maintaining an Equal Weight rating and a target price of $13, indicating a potential upside of nearly 15% for investors [1] - Recent price increases for Freshdesk plans have resulted in double-digit percentage hikes across all tiers, which could contribute an additional 3% growth for the business in FY26 [2] - Needham has a bullish outlook on Freshworks, assigning a Buy rating with a target price of $25, suggesting a significant upside potential of 121% [2] Group 2 - There is strong demand anticipated for Freshservice, Freshworks' IT service management platform, due to its user-friendly features and competitive pricing, particularly in up-market segments [3] - Freshdesk, the customer service software, is experiencing stable demand, while early adoption of Freddy AI across both platforms is expected to provide automation benefits and a competitive advantage [3] - Freshworks specializes in cloud-based SaaS solutions, focusing on AI-enabled offerings for IT service management, customer experience, and sales & marketing, serving a wide range of clients from startups to large enterprises [4]

Core Viewpoint - Freshworks Inc. is set to announce its financial results for Q4 and the full year of 2025 on February 10, 2026, with a live audio webcast to discuss these results and business highlights [1][2]. Group 1: Financial Results Announcement - The financial results for the fourth quarter and full year ended December 31, 2025, will be announced after market close on February 10, 2026 [1]. - A live audio webcast will take place at 2:00 p.m. Pacific Time / 5:00 p.m. Eastern Time on the same day [2]. Group 2: Company Overview - Freshworks Inc. specializes in uncomplicated service software aimed at enhancing customer and employee experiences [3]. - The company provides enterprise-grade solutions that are powerful yet user-friendly, designed to deliver quick results [3]. - Freshworks' AI-driven, people-first approach aims to eliminate friction, thereby increasing employee effectiveness and organizational efficiency [3]. - The company serves nearly 75,000 clients, including notable names such as Bridgestone, New Balance, Nucor, S&P Global, and Sony Music [3].

Company Overview - Freshworks is a California-based company that develops user-friendly service software aimed at enhancing customer and employee support, utilizing a people-first approach to AI [2] - The company has a strong global presence, serving nearly 75,000 organizations, including notable brands like Bridgestone, Nucor, and S&P Global [1] Financial Performance - Freshworks reported a revenue increase of 15% year-over-year (YOY) to $215.1 million in its fiscal 2025 third-quarter earnings, surpassing analysts' expectations [7] - The company posted a GAAP loss of $0.02 per share, but on an adjusted basis, non-GAAP EPS reached $0.16, reflecting a 45% YOY increase and exceeding Wall Street's estimate by 25.5% [8] - The balance sheet remains robust, with cash, cash equivalents, and marketable securities totaling $813.2 million as of September 30, 2025 [8] Future Outlook - Management anticipates full-year revenue between $833.1 million and $836.1 million, indicating approximately 16% annual growth, with non-GAAP EPS projected between $0.62 and $0.64 [9] - Analysts expect the company's GAAP loss to narrow by nearly 88% in 2025, indicating progress towards sustained profitability [9] Market Sentiment - Freshworks stock currently has a market capitalization of about $3.3 billion and has experienced a 27% decline in 2025, leading to a valuation reset [6] - The stock trades at 16.5 times forward earnings, which is significantly lower than the sector median, placing it in bargain territory [6] - Wall Street maintains a "Moderate Buy" consensus on FRSH, with eight out of 16 analysts recommending a "Strong Buy" [10] Price Targets - The average price target for Freshworks is $18.46, suggesting a potential upside of 57%, while the highest target of $27 indicates a possible increase of 129% [11]

Core Insights - Freshworks has appointed Kady Srinivasan as Chief Marketing Officer, who has over 15 years of experience in driving marketing transformations in high-growth SaaS companies [1][2] - Srinivasan will lead the global marketing strategy to enhance customer and employee experiences through uncomplicated service software [1][8] - Her previous roles include CMO at You.com and Lightspeed Commerce, where she achieved significant growth metrics, including doubling market share and driving 25% year-over-year growth [2] Company Overview - Freshworks Inc. specializes in building uncomplicated service software aimed at delivering exceptional customer and employee experiences [4] - The company serves nearly 75,000 clients, including notable names like Bridgestone, New Balance, and Sony Music, focusing on customer loyalty and service efficiency [4]

Group 1 - Freshworks Inc. is recognized as a low-priced stock with high upside potential, recently receiving a Neutral rating from BTIG without a price target [1] - The company has streamlined its portfolio, focusing on core Customer Experience (CX) and Employee Experience (EX) drivers while targeting the enterprise market [1] - Freshworks announced the acquisition of FireHydrant, an AI-native incident management platform, to enhance its IT service management capabilities [2] Group 2 - The acquisition aims to integrate Freshservice's IT Service Management with FireHydrant's IT Operations Management, creating a unified AI-native ServiceOps solution [3] - The combined solution emphasizes Unified Visibility, Faster Response, and Proactive IT to improve operational efficiency and reduce downtime [4] - Freshworks operates as a software development company providing SaaS products across various global regions [5]