Core Viewpoint - Freshworks Inc. is considered one of the best low-priced technology stocks to buy, with a focus on long-term financial targets and an updated outlook from UBS analyst Taylor McGinnis, who reiterated a Buy rating and a $19 price target [1][3]. Financial Targets - The company aims to exceed $1.2 billion in revenue by FY 2028, indicating an annual growth rate of 15%-16%, and targets free cash flow of over $340 million, with a margin of 28%-30% [2]. Analyst Insights - McGinnis noted that while there are execution risks due to challenges from seat-based SaaS models and rising AI adoption, the valuation of Freshworks remains attractive, particularly for CY 2026, with an EV/Sales ratio of approximately 3x and an EV/FCF ratio of 13x [3][5]. - Despite not adjusting the FY 2025 forecast, UBS has lowered the free cash flow margin forecast to 30% from 32% and set revenue growth at the lower end of management's range [4]. Company Overview - Freshworks Inc. operates as a SaaS provider, offering customer engagement and IT service management solutions through products like Freshdesk, Freshservice, and Freshsales [6].

Core Viewpoint - Freshworks Inc. is highlighted as a notable AI stock to monitor, with a Buy rating and a price target of $25.00 set by Needham analyst Scott Berg following the company's Analyst Day [1][3]. Financial Model and Growth Strategy - Freshworks presented its FY28 financial model, focusing on accelerating organic revenue growth and achieving incremental free cash flow (FCF) leverage, aiming for a "Rule of 45" framework [1][3]. - The company targets a $1.3 billion Annual Recurring Revenue (ARR), with a focus on sustaining a 20% growth rate in its Employee Experience (EX) segment and scaling its IT Asset Management (ITAM) ARR beyond $100 million [2][3]. Growth Drivers and Competitive Landscape - Key growth drivers identified include increasing deal sizes, competitive products such as those from Device42, and new partner initiatives [2][3]. - The company believes that targets for its Customer Experience (CX), Enterprise Service Management (ESM), and AI segments are relatively achievable given current growth levels and high demand for ESM and AI modules [3].

Core Viewpoint - Freshworks Inc. is positioned as a trending AI stock with a projected growth plan aiming for $1.3 billion in Annual Recurring Revenue (ARR) by 2028, despite market skepticism regarding its ability to achieve these targets due to AI-related disruptions [1][2][3]. Group 1: Growth Projections - The company has outlined a three-year growth framework that includes reaching $1.3 billion in ARR by 2028 and accelerating revenue growth from 2026 to 2028, while also achieving the "Rule of 45" [1][3]. - Analysts express confidence in Freshworks' potential to sustain over 20% annual growth in the next three years, despite market skepticism [2][3]. Group 2: Market Positioning - Freshworks shares are currently trading at attractive multiples, specifically 3x and 15x the company's revenue and free cash flow (FCF) estimates for 2026, which presents a favorable entry point for investors [3]. - The company is recognized for its software-as-a-service (SaaS) products, indicating a strong foundation for mid-teens growth and improvements in margins and free cash flow [3].

Core Viewpoint - Freshworks is focused on simplifying processes and enhancing user experience, as highlighted during the Investor Day 2025 presentation [1]. Group 1 - The presentation was led by Brian Lan, the Director of Investor Relations at Freshworks, emphasizing the company's commitment to transparency and engagement with investors [1]. - The agenda for the Investor Day included various topics aimed at showcasing Freshworks' strategies and future outlook [2]. - The company acknowledged the importance of disclaimers regarding forward-looking statements, indicating that actual results may differ from expectations [2].

Freshworks Investor Day 2025 Summary Company Overview - **Company**: Freshworks (NasdaqGS:FRSH) - **Event**: Investor Day 2025 - **Date**: September 11, 2025 - **Focus**: Uncomplicated AI-native service platform for customer and employee experiences Core Industry Insights - **Industry**: Software as a Service (SaaS) focusing on IT and customer service - **Market Size**: Total addressable market for EX (Employee Experience) and CX (Customer Experience) software is estimated at **$80 billion** [22] - **Target Market**: Mid-market and lower-end enterprise customers, which account for over **$10 trillion** in economic activity in the U.S. alone [22] Key Company Highlights - **Growth Metrics**: - Recurring revenue increased from approximately **$560 million** to **$840 million** in two years [10] - Achieved Rule of 45 milestone ahead of schedule [10] - AI monetization grew to **$20 million**, doubling in the last year [10] - 25% revenue growth from customers spending over **$100,000** [12] - Majority of revenue now from mid-market and enterprise customers [11] - **Product Portfolio**: - **Freshservice**: AI-powered platform for IT and employee services - **Freshdesk**: AI-powered customer service solution - **Freddy AI**: Includes Freddy AI Copilot, Freddy Insights, and Freddy AI Agents for enhanced customer and employee support [9] Strategic Focus Areas - **AI Integration**: Continuous infusion of AI across core products to enhance value and solve more problems [57] - **Vertical Expansion**: Focus on sectors like education, healthcare, and government [57] - **Add-on Products**: Scaling IT asset management and enterprise service management (ESM) products [58] - **Adjacency Expansion**: Exploring areas like AI Ops and SecOps for future growth [59] Customer Base and Testimonials - **Diverse Customer Base**: Over **74,000** companies including Fortune 500 firms like Panasonic and various government entities [6][7] - **Customer Success Stories**: - **Big Bus Tours**: Transformed customer service center into a profit center using Freddy AI [63] - **Modamax**: Unified IT operations and improved onboarding processes through Freshservice [51][52] Financial Outlook - **Future Projections**: On track to achieve over **$1.3 billion** in recurring revenue by 2028 with strong cash flow and operating margins [21] - **Sustained Growth**: EX business expected to sustain **20% growth** for years [21] Conclusion - Freshworks is positioned to capitalize on the growing demand for uncomplicated, AI-driven solutions in the SaaS market, with a clear strategy for growth and a strong commitment to customer success. The company aims to continue its upward trajectory by leveraging its innovative product offerings and expanding into new market segments.

Financial Performance & Growth - Freshworks' ARR exceeded $840 million[24], with a 2-year CAGR of 20%[24] - The company achieved 18% YoY revenue growth and a 27% adjusted FCF margin in Q2 2025[24] - Freshworks is on track for $1.3 billion+ ARR by 2028[34] - The company projects revenue between $822.9 million and $828.9 million for 2025, representing 14%-15% YoY growth[232] - Non-GAAP income from operations is projected between $153 million and $157 million for 2025[232] Customer Base & AI - Freshworks has 74,000+ paying customers across 120+ countries[21] - Mid-market and Enterprise customers account for >60% of total ARR[24] - Freddy AI is now a >$20 million ARR business[24, 96] Employee Experience (EX) - EX remains a durable 20%+ growth engine[34] - EX customers with >$100K ARR increased by 32% YoY[58] - Databricks achieved 23% ticket deflection via self-service using Freshworks[61]

Group 1 - The stock market is currently stable around all-time highs, with most gains in the S&P 500 concentrated in a few large-cap technology companies [1] - The experience of analysts covering technology companies and working in Silicon Valley provides insights into current industry trends [1] Group 2 - The article emphasizes the importance of understanding the technology sector to identify potential investment opportunities [1]

Freshworks (FRSH) FY Conference Summary Company Overview - Freshworks is a software company founded in 2010, primarily known for its Freshdesk product line, which has evolved to include AI-powered software for employee-facing (EX) and customer-facing (CX) products [3][4] - The company serves over 74,000 customers, focusing on IT and customer support teams to enhance efficiency and effectiveness [4] Financial Performance - The EX business has surpassed $450 million in revenue, growing over 22% year-over-year in constant currency, with approximately 19,000 customers [5] - The CX business has an annual recurring revenue (ARR) of over $380 million, growing 8% in the last quarter, up from 7% previously, with around 60,000 customers [6] Strategic Focus - The company is prioritizing the EX segment for growth, leveraging its competitive advantages against established players like ServiceNow [12][29] - AI integration across all products is a key strategy, with $20 million in ARR attributed to AI capabilities [13][36] - Freshworks aims to enhance its CX business by improving execution and focusing on the SMB and mid-market segments [14] Competitive Positioning - Freshworks differentiates itself by providing user-friendly, easy-to-implement software at competitive prices, targeting both SMBs and larger enterprises [15][16] - The company sees a significant opportunity in the underserved upmarket, primarily dominated by ServiceNow, which offers complex and expensive solutions [50][51] Sales and Marketing Strategy - Freshworks has two distinct sales motions: one for CX, primarily managed from India, and another for EX, focusing on enterprise sales [28][29] - The company is investing in building its enterprise sales capabilities and optimizing its marketing strategies to drive demand across both segments [30][31] AI Integration and Impact - AI is viewed as an accelerant for Freshworks, enhancing product utility and customer experience while potentially reducing the need for additional hiring among customers [36][46] - The company is focused on integrating AI features that improve agent productivity and customer engagement [41][43] Customer Base and Market Opportunities - Freshworks is expanding its customer base, targeting organizations of various sizes, from small businesses to large enterprises [58] - The company is also exploring adjacent markets, such as employee service management (ESM), to capture additional growth opportunities [60] M&A Strategy - Freshworks is open to pursuing mergers and acquisitions to enhance its product offerings, particularly in areas like security operations and IT operations [62][66] - The acquisition of Device 42 is highlighted as a successful example of entering a new market segment [64] Upcoming Events - Freshworks will hold an Investor Day on September 11, 2025, to provide updates on product strategy, financial goals, and market positioning [70][74] Conclusion - Freshworks is strategically positioned for growth in the EX market, leveraging AI and a strong customer base while addressing the competitive landscape effectively. The focus on execution, product innovation, and market expansion will be critical for its continued success.

Core Insights - Freshworks Inc. will host its Investor Day 2025 on September 11 at 8:30 a.m. Pacific Time in San Francisco, focusing on the company's vision, long-term strategy, product innovation, go-to-market priorities, and financial outlook [1] - The event will feature insights from the Freshworks executive leadership team on how AI-assisted customer and employee service software will drive future growth [1] Company Overview - Freshworks Inc. builds uncomplicated service software aimed at enhancing customer and employee experiences, with over 74,000 companies, including notable names like Bridgestone, New Balance, Nucor, S&P Global, and Sony Music, utilizing its solutions [3] - The company's enterprise-grade solutions are designed to be powerful yet easy to use, delivering quick results and promoting productivity through a people-first approach to AI [3]

Company Announcement - Freshworks Inc. will have Tyler Sloat, Chief Operating Officer and Chief Financial Officer, participate in a fireside chat at the Oppenheimer 28th Annual Technology, Internet & Communications Conference on August 11, 2025 at 9:25 a.m. Pacific Time [1] - An audio webcast replay of the event will be available on the Freshworks investor relations website [1] Company Overview - Freshworks Inc. specializes in creating uncomplicated service software aimed at enhancing customer and employee experiences [2] - The company offers enterprise-grade solutions that are powerful, user-friendly, and deliver quick results [2] - Freshworks employs a people-first approach to AI, which aims to reduce friction and improve employee effectiveness and organizational productivity [2] - Over 74,000 companies, including notable names like Bridgestone, New Balance, Nucor, S&P Global, and Sony Music, utilize Freshworks' customer experience (CX) and employee experience (EX) software [2]