NASDAQ$FRSH

Freshworks Inc · Q2 2022 earnings

Q2 2022 earnings · · Investor relations

Briefing

Freshworks' Q2 2022 financial results announced, demonstrating revenue growth and continued customer acquisition.

Freshworks reported a solid second quarter with revenue of $121.4 million, representing a 37% year-over-year growth (40% adjusting for constant currency). The company's net dollar retention rate was 111%, and it added several new customers.

  • Total revenue was $121.4 million, up 37% year-over-year (40% adjusting for constant currency).
  • GAAP loss from operations was $(67.4) million, compared to $(6.4) million in the second quarter of 2021.
  • Non-GAAP loss from operations was $(15.8) million, compared to $(5.4) million in the second quarter of 2021.
  • Net dollar retention rate was 111%.

Headline financials

Total Revenue

$121M

Previous: $88.3M+37.5%
EPS (adj)

-$0.06

Previous: -$5.13+98.8%
Customers with >$5k ARR

16.2K

Previous: 13.3K+21.9%
Net Dollar Retention Rate

111.0%

Previous: 118.0%-5.9%
Capital Expenditures

-$3.38M

Previous: $799K-523.2%
Free Cash Flow

-$73.1M

Previous: $86K-85139.5%
Net Income

-$69.8M

Previous: -$7.43M-838.9%
Operating Income

-$67.4M

Previous: -$6.44M-946.0%
Gross Profit

$97.4M

Previous: $69.6M+39.9%
Cash & Equivalents

$590M

Previous: $105M+463.1%
Total Assets

$1.38B

No prior period
Stock-Based Comp

$50.1M

No prior period

Revenue & EPS history

Freshworks · Revenue · Quarterly

$121M

Q2 2022+37.5%vs Q2 2021
Beat estimate in 13 of 15 quarters(87%)
ActualEstimate

Forward guidance

Freshworks provided estimates for the third quarter and full year 2022, based on current market conditions and expectations. Revenue growth rates are adjusted for constant currency to provide better visibility into the underlying business trends.

Tailwinds

  • Third quarter revenue is expected to be between $124.5 million and $126.5 million, representing a year-over-year growth of 29% - 31%.
  • Third quarter revenue growth adjusting for constant currency is expected to be 31% - 33%.
  • Full year 2022 revenue is expected to be between $493.0 million and $497.0 million, representing a year-over-year growth of 33% - 34%.
  • Full year 2022 revenue growth adjusting for constant currency is expected to be 35% - 36%.
  • Third quarter non-GAAP loss per share is expected to be between $(0.07) and $(0.05).

Headwinds

  • Third quarter non-GAAP loss from operations is expected to be between ($14.5) million and ($12.5) million.
  • Full year 2022 non-GAAP loss from operations is expected to be between ($42.5) million and ($38.5) million.
  • Full year 2022 non-GAAP net loss per share is expected to be between $(0.18) and $(0.16).
  • Estimates are subject to various important cautionary factors.
  • Estimates have not been reconciled for non-GAAP loss from operations to GAAP loss from operations or non-GAAP net loss per share to GAAP net loss per share due to uncertainty.

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 Q2 2022

Historical avgQ2 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

Discussion

Share your read of this quarter. Sign-in carries your eToro identity.

Join the conversation

Sign in with eToro to post your read of this quarter and vote on others'.

Sign in with eToro