NASDAQ$FRSH

Freshworks Inc · Q3 2021 earnings

Q3 2021 earnings · · Investor relations

Briefing

Freshworks reported strong results driven by continued adoption of its products and healthy expansion activity.

Freshworks reported a 46% year-over-year increase in total revenue, reaching $96.6 million for the third quarter of 2021. The company's net dollar retention rate was 117%, and they completed their initial public offering.

  • Total revenue grew 46% year-over-year.
  • Net dollar retention rate was 117%, up 8 percentage points year-over-year.
  • Completed an Initial Public Offering and listed as FRSH on NASDAQ.
  • Welcomed new customers including Double Diamond Resorts, ForgeRock, Hunter College NY, and more.

Headline financials

Total Revenue

$96.6M

Previous: $177M-45.3%
EPS (adj)

-$0.04

Previous: -$5.56+99.3%
Customers with >$5k ARR

14.1K

Previous: 0
Net Dollar Retention Rate

117.0%

Previous: 109.0%+7.3%
Capital Expenditures

-$4.06M

Previous: $3.63M-211.8%
Free Cash Flow

-$111M

Previous: $15.4M-822.9%
Net Income

-$107M

Previous: $1.39M-7844.4%
Operating Income

-$140M

Previous: $53K-264728.3%
Gross Profit

$74.4M

Previous: $53M+40.3%
Cash & Equivalents

$1.18B

Previous: $56M+2008.9%
Total Assets

$1.49B

No prior period
Stock-Based Comp

$124M

Previous: $43.3M+187.1%

Revenue & EPS history

Freshworks · Revenue · Quarterly

$96.6M

Q3 2021-45.3%vs Q3 2020
Beat estimate in 7 of 8 quarters(88%)
ActualEstimate

Forward guidance

Freshworks provided estimates for the fourth quarter and full year 2021 based on current market conditions and expectations.

Tailwinds

  • Fourth Quarter 2021 Total revenue of $99.0 million - $101.0 million
  • Fourth Quarter 2021 Non-GAAP loss from operations of $13.5 million - $11.5 million
  • Fourth Quarter 2021 Non-GAAP net loss per share of $0.07 - $0.05
  • Full Year 2021 Total revenue of $364.5 million - $366.5 million
  • Full Year 2021 Non-GAAP loss from operations of $21.0 million - $19.0 million

Headwinds

  • Fourth Quarter 2021 Non-GAAP loss from operations of $13.5 million - $11.5 million
  • Fourth Quarter 2021 Non-GAAP net loss per share of $0.07 - $0.05
  • Full Year 2021 Non-GAAP loss from operations of $21.0 million - $19.0 million
  • Full Year 2021 Non-GAAP net loss per share of $0.22 - $0.20
  • Estimates are subject to risks and uncertainties associated with the ongoing COVID-19 pandemic.

Historical earnings impact

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

Avg. return before/after earnings

Based on 20 quarterly earnings reports

Historical avg

-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