NASDAQ$FRSH

Freshworks Inc · Q2 2024 earnings

Q2 2024 earnings · · Investor relations

Briefing

Freshworks' Q2 2024 revenue grew to $174.1 million with a free cash flow margin of 19%.

Freshworks delivered a solid Q2, with revenue growing to $174.1 million and a free cash flow margin of 19%. The results reflect increasing financial discipline and the ability to meet customer needs with AI-powered solutions.

  • Total revenue was $174.1 million, representing growth of 20% compared to the second quarter of 2023.
  • Non-GAAP income from operations was $13.1 million, compared to $11.7 million in the second quarter of 2023.
  • Free cash flow was $32.8 million, compared to $18.1 million in the second quarter of 2023.
  • The number of customers contributing more than $5,000 in ARR was 21,744, an increase of 14% year-over-year.

Headline financials

Total Revenue

$174M

Previous: $145M+20.0%
EPS

-$0.07

Previous: $0.07-200.0%
Capital Expenditures

-$3.05M

Previous: -$712K-328.9%
Free Cash Flow

-$23.2M

Previous: -$36.4M+36.1%
Net Income

-$20.2M

Previous: -$35.7M+43.4%
Operating Income

-$43.8M

Previous: -$43.3M-1.2%
Gross Profit

$146M

Previous: $120M+21.4%
R&D Expense

$41M

No prior period
Stock-Based Comp

$55.1M

Previous: $54.2M+1.6%

Revenue & EPS history

Freshworks · Revenue · Quarterly

$174M

Q2 2024+20%vs Q2 2023
Beat estimate in 13 of 15 quarters(87%)
ActualEstimate

Forward guidance

Freshworks is providing estimates for the third quarter and full year 2024 based on current market conditions and expectations. Revenue for Q3 2024 is expected to be between $180.0 - $183.0 million and Non-GAAP net income per share is expected to be $0.07 - $0.08. Revenue for full year 2024 is expected to be between $707.0 - $713.0 million and Non-GAAP net income per share is expected to be $0.32 - $0.34.

Tailwinds

  • Revenue for Q3 2024 is expected to be between $180.0 - $183.0 million.
  • Year-over-year growth for Q3 2024 is expected to be 17% - 19%.
  • Non-GAAP income from operations for Q3 2024 is expected to be $13.0 - $15.0 million.
  • Non-GAAP net income per share for Q3 2024 is expected to be $0.07 - $0.08.
  • Revenue for full year 2024 is expected to be between $707.0 - $713.0 million.

Headwinds

  • Estimates are subject to various important cautionary factors.
  • Actual results may differ materially from these forward-looking statements.
  • Estimates for third quarter 2024 and full year 2024 include the estimates of Device42, Inc.
  • We have not reconciled our estimates for non-GAAP financial measures to GAAP due to the uncertainty and potential variability of expenses that may be incurred in the future.
  • A reconciliation is not available without unreasonable effort and we are unable to address the probable significance of the unavailable information.

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 2024

Historical avgQ2 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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