NASDAQ$FRSH
Freshworks Inc · Q3 2023 earnings
Q3 2023 earnings · · Investor relations
Briefing
Freshworks' Q3 2023 earnings exceeded estimates, driven by product innovation and improved profitability.
Freshworks reported a solid third quarter with revenue growth of 19% year-over-year. The company demonstrated improved business efficiency with positive net cash flow from operating activities and free cash flow. They are raising full year 2023 financial outlook midpoint for non-GAAP operating profit to $40 million.
- Total revenue was $153.6 million, a 19% increase compared to Q3 2022.
- GAAP loss from operations was $(38.7) million, an improvement from $(58.3) million in Q3 2022.
- Non-GAAP income from operations was $17.4 million, compared to a $(3.1) million loss in Q3 2022.
- Free cash flow was $22.1 million, compared to $(7.2) million in Q3 2022.
Headline financials
Revenue & EPS history
Freshworks · Revenue · Quarterly
$154M
Forward guidance
Freshworks is providing estimates for the fourth quarter and full year 2023 based on current market conditions and expectations.
Tailwinds
- Fourth Quarter 2023 Revenue: $156.7 - $159.3 million
- Fourth Quarter 2023 Year-over-year growth: 18% - 20%
- Fourth Quarter 2023 Non-GAAP income from operations: $5.5 - $8.5 million
- Fourth Quarter 2023 Non-GAAP net income per share: $0.04 - $0.06
- Full Year 2023 Revenue: $593.0 - $595.5 million
Headwinds
- Full Year 2023 Year-over-year growth: 19% - 20%
- Full Year 2023 Non-GAAP income from operations: $38.5 - $41.5 million
- Full Year 2023 Non-GAAP net income per share: $0.23 - $0.25
- Estimates are subject to various important cautionary factors
- 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.
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 Q3 2023
-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 |
|---|---|---|---|---|
| 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% | |
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