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Freshworks Inc.

Freshworks Inc.

NASDAQ•FRSH
CEO: Mr. Rathna Girish Mathrubootham
Sector: Technology
Industry: Software - Application
Listing Date: 2021-09-22
Freshworks Inc., a software development company, provides software-as-a-service products worldwide. Its software-as-a-service solutions includes Customer Experience (CX) and Employee Experience (EX). Customer Experience products include Freshdesk, a ticketing-centric customer service solution; Freshchat that provides agents with a modern conversational experience to proactively engage customers across digital messaging channels; Freshsales, an advanced and user-friendly sales automation solution; and Freshmarketer, a marketing automation solution for businesses to redefine their marketing strategies. Employee Experience products include Freshsales Suite, which offers businesses a unified platform that facilitates cohesive engagement and detailed tracking of customers throughout their entire buying journey; Freshservice that offers virtual agents to help employees resolve issues, make requests, and answer questions without contacting the service desk; and Freshservice for Business Teams, which provides a unified employee service experience while ensuring the secure separation of departmental data; and Device42. The company was formerly known as Freshdesk Inc. and changed its name to Freshworks Inc. in June 2017. Freshworks Inc. was incorporated in 2010 and is headquartered in San Mateo, California.
Contact Information
2950 South Delaware Street, Suite 201, San Mateo, CA, 94403, United States
650-513-0514
www.freshworks.com
Market Cap
$3.18B
P/E (TTM)
-58.6
83.4
Dividend Yield
--
52W High
$19.77
52W Low
$10.76
52W Range
2%
4.0
F-Score
Modified Piotroski Analysis
Based on 10-year fundamentals
Average • 4 / 9 points
Scoring Range (0-9)
8-9: Excellent Value
6-7: Strong Fundamentals
4-5: Average Quality
0-3: Weak Performance
Data Period: 2015-2024

Financial Dashboard

Q2 2025 Data

Revenue

$204.68M+17.54%
4-Quarter Trend

EPS

-$0.01-91.23%
4-Quarter Trend

FCF

$58.21M+77.35%
4-Quarter Trend

2025 Q2 Earnings Highlights

Key Highlights

Revenue Growth Strong 18% Six months revenue reached $401.0M USD, increasing 18% driven by subscription services expansion and new customer acquisition.
Net Loss Significantly Reduced Six months net loss narrowed to $3.0M USD from $43.5M USD last year, reflecting major operational leverage gains.
Gross Margin Expansion Noted Gross margin improved to 85% for the six months ended June 30, 2025, up from 84% due to revenue growth outpacing hosting costs.
Large Customer Base Growing Customers contributing over $5,000 in ARR grew 10% to 23,975 as of June 30, 2025, indicating success with larger enterprises.

Risk Factors

Macroeconomic Pressures Persist Macroeconomic uncertainties like inflation and geopolitical events adversely impacted net dollar retention rate expansion efforts recently.
Foreign Exchange Rate Volatility Adverse 10% foreign currency rate change on monetary assets/liabilities could result in an approximate $12.1M USD gain or loss.
Reliance on Cloud Partner Operations heavily rely on third-party cloud infrastructure partner Amazon Web Services; disruption could severely impact service delivery.
Litigation Contingencies Remain Securities class action complaint remains active; plaintiff filed appeal notice until July 31, 2025, regarding IPO disclosures.

Outlook

Strategic Investments Continue Expect R&D expenses to increase in dollar amount for the foreseeable future, supporting continued investment in product development efforts.
Sales/Marketing Efficiency Expected Sales and marketing expenses are expected to decline as a percentage of revenue over the longer term despite near-term dollar increases.
Tax Law Changes Evaluated New OBBBA legislation allows immediate R&D expensing; expected Q3/Q4 2025 tax impact is immaterial due to existing NOLs.
Liquidity Sufficient for 12 Months Existing liquidity, including $486.0M USD cash, is believed sufficient to meet working capital needs for at least the next 12 months.

Peer Comparison

Revenue (TTM)

Compass, Inc.COMP
$6.64B
+24.3%
Global Business Travel Group, Inc.GBTG
$2.44B
+3.6%
Blackbaud, Inc.BLKB
$1.14B
-1.1%

Gross Margin (Latest Quarter)

Asana, Inc.ASAN
89.7%
+0.9 pp
Freshworks Inc.FRSH
84.8%
+1.0 pp
BlackLine, Inc.BL
75.2%
+0.4 pp

Key Metrics

Symbol
Market Cap
P/E (TTM)
ROE (TTM)
Debt to Assets
COMP$4.40B-83.9-8.9%29.1%
GBTG$3.67B-63.4-5.1%37.6%
BL$3.49B40.121.4%51.4%

Long-Term Trends

Last 4 Quarters
Revenue
Net Income
Operating Cash Flow
4Q Revenue CAGR
+3.1%
Moderate Growth
4Q Net Income CAGR
N/M
Profitability Shift
Cash Flow Stability
100%
Strong Cash Flow

Research & Insights

Reports
All Years

  • Form 10-Q - Q2 2025

    Period End: Jun 30, 2025|Filed: Jul 29, 2025|
    Revenue: $204.68M+17.5%
    |
    EPS: $-0.01-91.2%
    Miss

  • Form 10-Q - Q1 2025

    Period End: Mar 31, 2025|Filed: Apr 29, 2025|
    Revenue: $196.27M+18.9%
    |
    EPS: $-0.00-94.5%
    Miss

  • Form 10-K - FY 2024

    Period End: Dec 31, 2024|Filed: Feb 20, 2025|
    Revenue: $720.42M+20.8%
    |
    EPS: $-0.32+31.9%
    Miss

  • Form 10-Q - Q3 2024

    Period End: Sep 30, 2024|Filed: Nov 6, 2024|
    Revenue: $186.58M+21.5%
    |
    EPS: $-0.10-9.8%
    Miss

  • Form 10-Q - Q2 2024

    Period End: Jun 30, 2024|Filed: Jul 30, 2024|
    Revenue: $174.13M+20.0%
    |
    EPS: $-0.07-43.9%
    Miss

  • Form 10-Q - Q1 2024

    Period End: Mar 31, 2024|Filed: May 1, 2024|
    Revenue: $165.14M+19.9%
    |
    EPS: $-0.08-47.8%
    Miss

  • Form 10-K - FY 2023

    Period End: Dec 31, 2023|Filed: Feb 16, 2024|
    Revenue: $596.43M+19.8%
    |
    EPS: $-0.47+42.7%
    Miss

  • Form 10-Q - Q3 2023

    Period End: Sep 30, 2023|Filed: Oct 31, 2023|
    Revenue: $153.55M+19.3%
    |
    EPS: $-0.11-45.0%
    Miss