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 >$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 19 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
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———
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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