NASDAQ$FRSH

Freshworks Inc · Q1 2024 earnings

Q1 2024 earnings · · Investor relations

Briefing

Freshworks reported a 20% year-over-year revenue growth and improved business efficiency with $40.6 million in net cash provided by operating activities.

Freshworks reported a strong first quarter with a 20% increase in revenue year-over-year, reaching $165.1 million. The company also demonstrated improved profitability and generated a strong free cash flow of $38.7 million.

  • First quarter revenue grew 20% year-over-year, 19% adjusting for constant currency.
  • GAAP loss from operations was $(32.2) million, compared to $(48.1) million in the first quarter of 2023.
  • Non-GAAP income from operations was $21.8 million, compared to $3.9 million in the first quarter of 2023.
  • Free cash flow was $38.7 million, compared to $9.1 million in the first quarter of 2023.

Headline financials

Total Revenue

$165M

Previous: $138M+19.9%
EPS

-$0.08

Previous: $0.03-366.7%
Customers with >$5k ARR

20.6K

Previous: 18.4K+11.7%
Net Dollar Retention Rate

106.0%

Previous: 107.0%-0.9%
Capital Expenditures

-$739K

Previous: -$383K-93.0%
Free Cash Flow

-$24.1M

Previous: -$43M+44.1%
Net Income

-$23.3M

Previous: -$42.7M+45.3%
Operating Income

-$32.2M

Previous: -$48.1M+33.1%
Gross Profit

$139M

Previous: $112M+23.8%
R&D Expense

$34.7M

No prior period
Stock-Based Comp

$52.4M

Previous: $50.7M+3.4%

Revenue & EPS history

Freshworks · Revenue · Quarterly

$165M

Q1 2024+19.9%vs Q1 2023
Beat estimate in 13 of 15 quarters(87%)
ActualEstimate

Forward guidance

Freshworks provided estimates for the second quarter and full year 2024 based on current market conditions and expectations. Revenue and non-GAAP income from operations are based on exchange rates as of April 26, 2024 for currencies other than USD.

Tailwinds

  • Second Quarter 2024 Revenue: $168.0 - $170.0 million
  • Second Quarter 2024 Year-over-year growth: 16% - 17%
  • Second Quarter 2024 Non-GAAP income from operations: $6.5 - $8.5 million
  • Second Quarter 2024 Non-GAAP net income per share: $0.05 - $0.06
  • Full Year 2024 Non-GAAP net income per share: $0.32 - $0.35

Headwinds

  • Full Year 2024 Revenue: $695.0 - $705.0 million
  • Full Year 2024 Year-over-year growth: 17% - 18%
  • Full Year 2024 Non-GAAP income from operations: $58.0 - $64.0 million
  • Estimates are subject to various important cautionary factors.
  • Estimates for non-GAAP financial measures to GAAP have not been reconciled due to the uncertainty and potential variability of expenses that may be incurred in the future.

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 2024

Historical avgQ1 2024

-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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