NASDAQ$FRSH
Freshworks Inc · Q1 2023 earnings
Q1 2023 earnings · · Investor relations
Briefing
Freshworks' Q1 2023 revenue increased by 20% year-over-year, reaching $137.7 million, and the company achieved its first quarter of non-GAAP operating profit as a public entity.
Freshworks reported a strong first quarter in 2023, exceeding financial estimates with 20% year-over-year revenue growth (23% in constant currency) and achieving its first non-GAAP operating profit as a public company. The company also demonstrated improved business efficiency with positive free cash flow.
- Revenue reached $137.7 million, a 20% increase year-over-year (23% adjusting for constant currency).
- Non-GAAP income from operations was $3.9 million, marking the first profitable quarter as a public company.
- Free cash flow improved to $9.1 million.
- The number of customers contributing more than $5,000 in ARR increased by 18% year-over-year.
Headline financials
Revenue & EPS history
Freshworks · Revenue · Quarterly
$138M
Forward guidance
Freshworks provided revenue and non-GAAP operating income guidance for Q2 2023 and full year 2023.
Tailwinds
- Q2 2023 revenue is expected to be between $140.0 million and $142.5 million, representing year-over-year growth of 15% - 17% (16% - 18% adjusting for constant currency).
- Q2 2023 non-GAAP income (loss) from operations is expected to be between $(2.0) million and $0.0 million.
- Q2 2023 non-GAAP net income per share is expected to be between $0.00 and $0.02.
- Full year 2023 revenue is expected to be between $580.0 million and $592.5 million, representing year-over-year growth of 16% - 19% (17% - 19% adjusting for constant currency).
- Full year 2023 non-GAAP income from operations is expected to be between $2.0 million and $8.0 million.
Headwinds
- Q2 2023 non-GAAP income (loss) from operations is expected to be between $(2.0) million and $0.0 million.
- There is uncertainty and potential variability of expenses that may be incurred in the future.
- Estimates are based on current market conditions and expectations which are subject to change.
- Estimates are subject to various important cautionary factors referenced in the section entitled “Forward-Looking Statements”.
- Actual results may differ materially.
Historical earnings impact
How earnings announcements have historically affected this stock's price.
Avg. return before/after earnings
Based on 19 quarterly earnings reports · overlaid with Q1 2023
-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
| Quarter | Report date | Reaction (Day 0) | +5 days | +30 days |
|---|---|---|---|---|
| Q2 2025 | — | — | — | |
| 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% | |
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| Q2 2014 | — | — | — |
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