NASDAQ$FRSH
Freshworks Inc · Q3 2022 earnings
Q3 2022 earnings · · Investor relations
Briefing
Freshworks' Q3 2022 earnings showcased strong revenue growth and improved operating efficiency.
Freshworks reported a strong third quarter with revenue reaching $128.8 million, a 33% increase year-over-year (37% adjusting for constant currency). The company demonstrated improved operating efficiency with a reduced GAAP loss from operations. Key metrics included a 19% increase in customers contributing more than $5,000 in ARR and a net dollar retention rate of 107%.
- Total revenue was $128.8 million, up 33% year-over-year (37% adjusting for constant currency).
- GAAP loss from operations improved to $(58.3) million, compared to $(140.3) million in Q3 2021.
- Customers contributing more than $5,000 in ARR increased by 19% year-over-year.
- Net dollar retention rate was 107%.
Headline financials
Revenue & EPS history
Freshworks · Revenue · Quarterly
$129M
Forward guidance
Freshworks provided estimates for the fourth quarter and full year 2022 based on current market conditions and expectations, with revenue growth rates adjusted for constant currency.
Tailwinds
- Fourth Quarter 2022 Revenue: $129.2 - $131.2 million (27%-28% growth adjusting for constant currency)
- Full Year 2022 Revenue: $494.0 - $496.0 million (36%-37% growth adjusting for constant currency)
- Fourth Quarter 2022 Non-GAAP loss from operations: ($10.5) - ($8.5) million
- Full Year 2022 Non-GAAP loss from operations: ($30.0) - ($28.0) million
- Fourth Quarter 2022 Non-GAAP net loss per share: ($0.05) - ($0.03)
Headwinds
- Full Year 2022 Non-GAAP net loss per share: ($0.13) - ($0.11)
- Estimates are subject to cautionary factors referenced in the “Forward-Looking Statements” section.
- Revenue and non-GAAP loss from operations are based on exchange rates as of October 28, 2022.
- 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 of future expenses.
- Actual results may differ materially from these forward-looking statements.
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 Q3 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
| 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% | |
| Q2 2020 | — | — | — | |
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| Q1 2019 | — | — | — | |
| Q4 2018 | — | — | — | |
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| Q1 2015 | — | — | — | |
| Q4 2014 | — | — | — | |
| Q3 2014 | — | — | — | |
| Q2 2014 | — | — | — |
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