NASDAQ$FRSH

Freshworks Inc · Q4 2022 earnings

Q4 2022 earnings · · Investor relations

Briefing

Freshworks' Q4 2022 financial results showcased revenue growth and improved cash flow amidst macroeconomic uncertainty.

Freshworks reported a 26% year-over-year revenue increase in Q4 2022, reaching $133.2 million. The company's focus on product innovation and business expansion drove revenue growth and improved cash flow, with $7.2 million in net cash from operating activities and $4 million in free cash flow during the quarter.

  • Total revenue was $133.2 million, representing 26% growth compared to Q4 2021.
  • GAAP loss from operations was $(60.6) million, compared to $(56.4) million in Q4 2021.
  • Non-GAAP net income per share was $0.01, compared to $(0.06) in Q4 2021.
  • Free cash flow was $4.0 million, compared to $2.8 million in Q4 2021.

Headline financials

Total Revenue

$133M

Previous: $105M+26.3%
EPS (adj)

$0.01

Previous: -$0.06+116.7%
Customers with >$5k ARR

17.7K

Previous: 14.8K+19.6%
Net Dollar Retention Rate

108.0%

Previous: 114.0%-5.3%
Capital Expenditures

$1.84M

Previous: $1.51M+22.0%
Free Cash Flow

$4M

Previous: $2.8M+42.9%
Net Income

-$55.5M

Previous: -$74.7M+25.8%
Operating Income

-$60.6M

Previous: -$56.4M-7.5%
Gross Profit

$108M

Previous: $85.1M+27.0%
Cash & Equivalents

$304M

Previous: $748M-59.3%
Total Assets

$1.38B

Previous: $1.48B-6.9%
Stock-Based Comp

$57M

Previous: $49.2M+16.0%

Revenue & EPS history

Freshworks · Revenue · Quarterly

$133M

Q4 2022+26.3%vs Q4 2021
Beat estimate in 13 of 15 quarters(87%)
ActualEstimate

Forward guidance

Freshworks provided estimates for Q1 and Full Year 2023 based on current market conditions and expectations, with revenue growth rates adjusted for constant currency.

Tailwinds

  • Q1 2023 Revenue is expected to be $133.0 - $135.0 million.
  • Q1 2023 Year-over-year growth of 16% - 18%.
  • Q1 2023 Year-over-year growth adjusting for constant currency of 19% - 21%.
  • Full Year 2023 Revenue is expected to be $575.0 - $590.0 million.
  • Full Year 2023 Non-GAAP loss from operations ($14.0) - ($6.0) million.

Headwinds

  • Q1 2023 Non-GAAP loss from operations is expected to be ($9.0) - ($7.0) million.
  • Q1 2023 Non-GAAP net loss per share is expected to be ($0.03) - ($0.01).
  • Full Year 2023 Year-over-year growth of 15% - 18%.
  • Full Year 2023 Year-over-year growth adjusting for constant currency of 16% - 19%.
  • Full Year 2023 Non-GAAP net loss per share is expected to be ($0.01) - $0.03.

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 2022

Historical avgQ4 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

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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