Freshworks(US:FRSH)2025-11-05 21:17Revenue Performance - Total revenue for Q3 2025 was $215.1 million, a 15% increase from $186.6 million in Q3 2024[6] - Freshworks reported Q3 2025 revenue of $215,118,000, a 15% increase from $186,575,000 in Q3 2024[27] - For Q4 2025, revenue is expected to be between $217.0 million and $220.0 million, reflecting a year-over-year growth of 12% to 13%[9] - Full year 2025 revenue guidance is raised to between $833.1 million and $836.1 million, indicating a 16% year-over-year growth[9] Profitability Metrics - Non-GAAP income from operations was $45.2 million, with a non-GAAP operating margin of 21.0%, compared to $24.0 million and 12.8% in Q3 2024[6] - Gross profit for Q3 2025 was $182,163,000, compared to $156,769,000 in Q3 2024, reflecting a gross margin improvement[27] - Non-GAAP net income for Q3 2025 was $46,776, compared to $33,573 in Q3 2024, representing a 39.2% increase[34] - GAAP gross margin for Q3 2025 was 84.7%, slightly up from 84.0% in Q3 2024[33] - Non-GAAP operating margin for Q3 2025 was 21.0%, compared to 12.8% in Q3 2024, showing a significant improvement[34] Cash Flow and Operating Activities - Net cash provided by operating activities was $63.5 million, representing an operating cash flow margin of 29.5%, up from $42.3 million and 22.7% in Q3 2024[6] - The company reported a net cash provided by operating activities of $63,472,000 for Q3 2025, up from $42,329,000 in Q3 2024[31] - Adjusted free cash flow was $57.2 million, with an adjusted free cash flow margin of 26.6%, compared to $40.1 million and 21.5% in Q3 2024[6] - Adjusted free cash flow for Q3 2025 was $57,209, compared to $40,105 in Q3 2024, marking a 42.6% increase[35] - Net cash provided by operating activities for the nine months ended September 30, 2025, was $180,036, up from $119,284 in the same period of 2024, a 51.0% increase[35] Customer Metrics - The number of customers contributing more than $5,000 in ARR increased by 9% year-over-year to 24,377[11] - The net dollar retention rate was 105%, slightly down from 107% in Q3 2024[11] Cost Management - Operating expenses totaled $189,620,000 in Q3 2025, down from $195,633,000 in Q3 2024, indicating cost management efforts[27] - Stock-based compensation expense for Q3 2025 was $48,529,000, down from $58,709,000 in Q3 2024[32] Asset and Liability Overview - Cash and cash equivalents decreased to $420,934,000 as of September 30, 2025, from $620,315,000 at the end of 2024[29] - Total assets decreased to $1,371,959,000 as of September 30, 2025, down from $1,611,884,000 at the end of 2024[29] - Deferred revenue increased to $348,001,000 as of September 30, 2025, compared to $323,435,000 at the end of 2024, indicating strong future revenue potential[29] Management Changes - The company appointed Enrique Ortegon as Senior Vice President and General Manager of Americas Field Sales[11] Currency Impact - Freshworks' revenue adjusted for constant currency also showed a 15% growth, indicating stable performance despite currency fluctuations[32]