NASDAQ$FRSH

Freshworks Inc · Q1 2022 earnings

Q1 2022 earnings · · Investor relations

Briefing

Freshworks' Q1 2022 earnings showcased strong revenue growth and business efficiency.

Freshworks reported a strong start to the year with Q1 revenue growth of 42% year-over-year. The company launched Freshworks CRM for e-commerce, increased net dollar retention to 115%, and maintained business efficiency with $1.4 million in net cash from operating activities.

  • Total revenue was $114.6 million, representing 42% growth year-over-year.
  • Net dollar retention rate increased to 115%, up 1 percentage point quarter-over-quarter.
  • Net cash provided by operating activities was $1.4 million.
  • The number of customers contributing more than $5,000 in ARR increased by 27% year-over-year to 15,639.

Headline financials

Total Revenue

$115M

Previous: $80.6M+42.3%
EPS (adj)

-$0.01

Previous: $0.09-111.2%
Customers with >$5k ARR

15.6K

No prior period
Net Dollar Retention Rate

115.0%

Previous: 112.0%+2.7%
Capital Expenditures

-$1.4M

Previous: $1.99M-170.3%
Free Cash Flow

-$50.5M

Previous: $5.79M-971.4%
Net Income

-$49.1M

Previous: -$2.42M-1931.4%
Operating Income

-$47.1M

Previous: -$1.72M-2647.8%
Gross Profit

$92.2M

Previous: $63.9M+44.4%
Cash & Equivalents

$603M

Previous: $121M+399.9%
Total Assets

$1.39B

No prior period
Stock-Based Comp

$46.6M

No prior period

Revenue & EPS history

Freshworks · Revenue · Quarterly

$115M

Q1 2022+42.3%vs Q1 2021
Beat estimate in 7 of 8 quarters(88%)
ActualEstimate

Forward guidance

Freshworks provided estimates for the second quarter and full year 2022 based on current market conditions and expectations.

Tailwinds

  • Second Quarter 2022 Total revenue of $117.0 million - $119.0 million
  • Second Quarter 2022 Non-GAAP loss from operations of $18.5 million - $16.5 million
  • Second Quarter 2022 Non-GAAP net loss per share of $0.08 - $0.06
  • Full Year 2022 Total revenue of $495.5 million - $501.5 million
  • Full Year 2022 Non-GAAP loss from operations of $43.5 million - $37.5 million

Headwinds

  • Second Quarter 2022 Non-GAAP loss from operations of $18.5 million - $16.5 million
  • Second Quarter 2022 Non-GAAP net loss per share of $0.08 - $0.06
  • Full Year 2022 Non-GAAP loss from operations of $43.5 million - $37.5 million
  • Full Year 2022 Non-GAAP net loss per share of $0.18 - $0.16
  • These estimates are subject to various important cautionary factors referenced in the section entitled “Forward-Looking Statements”

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q1 2022

Historical avgQ1 2022

-1.6%

Avg return

Earnings day

-2.6%

Avg return

5 days after

-4.6%

Avg return

30 days after

35%

8 / 23 earnings

Positive

+35.2%

Q3 2024

Best reaction

-21.6%

Q4 2021

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026-0.5%-6.4%+2.9%
Q4 2025-16.4%-17.1%-6.9%
Q3 2025-2.1%+5.2%+16.1%
Q1 2025+3.0%+1.1%+6.5%
Q4 2024-0.3%-4.5%-16.7%
Q3 2024+35.2%+32.7%+33.5%
Q2 2024-6.1%-12.3%-11.9%
Q1 2024-17.8%-20.8%-27.8%
Q4 2023-2.4%+0.2%-14.4%
Q3 2023-0.4%+7.8%+13.6%
Q2 2023+15.8%+12.1%+17.2%
Q1 2023-2.9%-1.1%+16.6%
Q4 2022+4.1%-2.8%-10.1%
Q3 2022-9.9%-9.3%+11.8%
Q2 2021+3.2%+6.8%-13.6%
Q2 2022+12.2%+13.7%-0.7%
Q1 2021-12.0%-15.6%-3.9%
Q1 2022-7.1%-12.9%-10.3%
Q4 2019-5.2%-1.5%+8.1%
Q4 2021-21.6%-5.7%-26.7%
Q3 2020+2.9%-4.1%-28.1%
Q4 2020+2.9%-4.1%-28.1%
Q3 2021-10.7%-20.6%-33.0%
Q2 2020
Q1 2020
Q1 2019
Q4 2018
Q3 2018
Q2 2018
Q1 2018
Q4 2017
Q3 2017
Q2 2017
Q1 2017
Q4 2016
Q3 2016
Q2 2016
Q1 2016
Q4 2015
Q3 2015
Q2 2015
Q1 2015
Q4 2014
Q3 2014
Q2 2014

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