Whetstone Sells All Freshworks Shares

Core Insights - Whetstone Capital Advisors, LLC has fully liquidated its position in Freshworks, selling all 492,234 shares valued at approximately $7.3 million as of the end of June [2][6]. Company Overview - Freshworks Inc. provides cloud-based software-as-a-service (SaaS) solutions for customer engagement, IT service management, and sales automation, catering to a diverse customer base from small businesses to large enterprises globally [5]. - As of the latest financial data, Freshworks reported a total revenue of $810.64 million and a net income of -$29.62 million, with a market capitalization of $3.59 billion [4]. Recent Performance - Freshworks experienced a 15% year-over-year revenue growth in the third quarter, reaching $215.1 million, although it reported an operating loss of $7.5 million, which is an improvement from a loss of $38.9 million in the previous year [6]. - The company also reported a non-GAAP operating income of $45.2 million, nearly double the previous year's figure of $24 million, although this includes adjustments for stock-based compensation [7]. Market Sentiment - Following its IPO in 2021 at $36, Freshworks' stock price has significantly declined, currently trading at $12.11, which is less than one-third of the IPO price. The stock has underperformed the S&P 500 by 40.5 percentage points over the past year, indicating market skepticism regarding its future prospects despite efforts to push AI products [8][9].