Competitive PressureThe competitive market, particularly from large public vendors, may challenge Freshworks' durable growth prospects in its core end markets.
Market ChallengesFreshworks shares have been on a steady downward slide over the last few quarters as the company grapples with significant challenges in the SMB market, particularly in the case of its Customer Experience Management (CXM) segment, where growth has slowed to the mid- to high-single digits.
Workforce ReductionThere is an expectation of near-term disruption with a 13% reduction in workforce, changes in go-to-market strategies, and lowered revenue estimates.