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Freshworks (FRSH)
NASDAQ:FRSH
Earnings Data
Report Date
May 06, 2025TBA Not Confirmed
Period Ending
2025 (Q1)Consensus EPS Forecast
0.13Last Year’s EPS
0.1Same Quarter Last Year
Moderate Buy
Based on 16 Analysts Ratings
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Earnings Call Summary
Earnings Call Date:Feb 11, 2025
|% Change Since: 1.46%
|Next Earnings Date:May 06, 2025
Earnings Call Sentiment|Positive
The earnings call highlighted significant achievements in revenue growth, customer base expansion, and AI product adoption, with strong operating margins and free cash flow. However, challenges such as FX impacts and pressure on net dollar retention were noted. Overall, the positives largely outweighed the negatives, suggesting a strong performance with room for continued growth.Company Guidance
During Freshworks' fourth quarter and full year 2024 earnings call, the company reported a strong performance, surpassing key metrics and estimates. Freshworks achieved a revenue of $194.6 million in Q4, marking a 22% year-over-year growth. The company also reported a non-GAAP operating margin of 21% and generated an adjusted free cash flow of $41.7 million, resulting in a 21% free cash flow margin. Freshworks ended the year with over 72,200 customers and added more than 2,600 net new customers in Q4. The company achieved a net dollar retention rate of 105% on a constant currency basis. Key accomplishments included exceeding $400 million in annual recurring revenue (ARR) for the Employee Experience (EX) business, which grew 35% year-over-year on a constant currency basis, and achieving over $360 million in ARR for the Customer Experience (CX) business, with a 7% year-over-year growth. Freshworks also highlighted strategic initiatives in AI, with Freddy Copilot reaching over 2,200 customers and a 50% attach rate for new deals of $30,000 or more. Looking ahead, Freshworks provided revenue guidance for Q1 2025 in the range of $190 million to $193 million, with a growth expectation of 15% to 17% year-over-year. For the full year 2025, the company expects revenue between $809 million and $821 million, representing a 12% to 14% increase, and aims to generate approximately $210 million in free cash flow.Strong Revenue Growth
Q4 revenue grew 22% year-over-year to $194.6 million, exceeding expectations. Full year 2024 revenue was strong, driven by significant growth in key segments.
Customer Base Expansion
Freshworks ended the year with over 72,200 customers, adding over 2,600 net customers in Q4, the largest quarterly increase in four years.
Employee Experience (EX) Business Growth
EX business surpassed $400 million in ARR, growing 35% year-over-year on a constant currency basis, with a strong emphasis on mid-market and enterprise customers.
AI Product Adoption
Freddy Copilot ended the year with more than 2,200 customers, reflecting 30% growth quarter-over-quarter, and over 50% attach rates for new deals of $30,000 or more.
Strategic Partnerships and New Customers
New strategic agreement with Unisys and onboarding of notable customers including Airbus, AMC Networks, and New Balance.
Record Operating Margin and Free Cash Flow
Non-GAAP operating margin reached 21% in Q4, with adjusted free cash flow of $41.7 million, representing a 46% year-over-year growth.
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FRSH Earnings History
The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.
Beat
Missed
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FRSH Earnings-Related Price Changes
Report Date | Price 1 Day Before | Price 1 Day After | Percentage Change |
|---|---|---|---|
| Feb 11, 2025 | $17.86 | $17.80 | -0.34% |
| Nov 06, 2024 | $13.09 | $16.82 | +28.50% |
| Jul 30, 2024 | $13.28 | $12.50 | -5.87% |
| May 01, 2024 | $18.25 | $14.67 | -19.62% |
Earnings announcements can affect a stock’s price. This table shows the stock's price the day before and the day after recent earnings reports, including the percentage change.
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FAQ
When does Freshworks (FRSH) report earnings?
Freshworks (FRSH) is schdueled to report earning on May 06, 2025, TBA Not Confirmed.
What is Freshworks (FRSH) earnings time?
Freshworks (FRSH) earnings time is at May 06, 2025, TBA Not Confirmed.
Where can I see when companies are reporting earnings?
You can see which companies are reporting today on our designated earnings calendar.
What companies are reporting earnings today?
You can see a list of the companies which are reporting today on TipRanks earnings calendar.
What is FRSH EPS forecast?
FRSH EPS forecast for the fiscal quarter 2025 (Q1) is 0.13.
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