NASDAQ$FRSH

Freshworks Inc · Q4 2021 earnings

Q4 2021 earnings · · Investor relations

Briefing

Freshworks surpassed $100 million in quarterly revenue and achieved 44% year-over-year growth

Freshworks Inc. announced financial results for the fourth quarter and full year ended December 31, 2021. Total revenue was $105.5 million, representing growth of 44% compared to the fourth quarter of 2020.

  • Total revenue was $105.5 million, representing growth of 44% compared to the fourth quarter of 2020.
  • GAAP (loss) from operations was $(56.4) million, compared to $(3.4) million in the fourth quarter of 2020.
  • Non-GAAP (loss) from operations was $(10.7) million, compared to $(2.3) million in the fourth quarter of 2020.
  • Number of customers contributing more than $5,000 in ARR was 14,814, an increase of 28% year-over-year.

Headline financials

Total Revenue

$105M

Previous: $73M+44.5%
EPS (adj)

-$0.06

Previous: $3.46-101.7%
Customers with >$5k ARR

14.8K

Previous: 11.6K+28.0%
Net Dollar Retention Rate

114.0%

Previous: 111.0%+2.7%
Capital Expenditures

$1.51M

Previous: $755K+99.9%
Free Cash Flow

$2.8M

Previous: $12.7M-78.0%
Net Income

-$74.7M

Previous: -$1.54M-4768.8%
Operating Income

-$56.4M

Previous: -$3.39M-1564.5%
Gross Profit

$85.1M

Previous: $57.5M+47.9%
Cash & Equivalents

$748M

Previous: $95.4M+684.1%
Total Assets

$1.48B

Previous: $367M+303.6%
Stock-Based Comp

$49.2M

No prior period

Revenue & EPS history

Freshworks · Revenue · Quarterly

$105M

Q4 2021+44.5%vs Q4 2020
Beat estimate in 7 of 8 quarters(88%)
ActualEstimate

Forward guidance

Freshworks is providing estimates for the first quarter and full year 2022 based on current market conditions and expectations.

Tailwinds

  • First Quarter 2022 Total revenue of $107.0 million - $109.0 million
  • First Quarter 2022 Non-GAAP loss from operations of $(12.5) million - $(10.5) million
  • First Quarter 2022 Non-GAAP net loss per share of $(0.07) - $(0.05)
  • Full Year 2022 Total revenue of $486.5 million - $495.0 million
  • Full Year 2022 Non-GAAP loss from operations of $(56.5) million - $(48.5) million

Headwinds

  • Non-GAAP net loss per share of $(0.23) - $(0.19)
  • Estimates are subject to various important cautionary factors referenced in the section entitled “Forward-Looking Statements”
  • Risks and uncertainties associated with the ongoing COVID-19 pandemic.
  • Freshworks has not reconciled its estimates for non-GAAP loss from operations to GAAP loss from operations or non-GAAP net loss per share to GAAP net loss per share
  • A reconciliation is not available without unreasonable effort.

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 Q4 2021

Historical avgQ4 2021

-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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