NASDAQ$FRSH

Freshworks Inc · Q4 2024 earnings

Q4 2024 earnings · · After market close · Investor relations

Briefing

Freshworks delivered a strong Q4 2024 with revenue growing 22% year-over-year to $194.6 million. The company reduced its GAAP operating loss and significantly increased its non-GAAP income from operations. Non-GAAP diluted EPS was $0.14, up from $0.08 a year ago. Adjusted free cash flow improved to $41.7 million.

Headline financials

Total Revenue

$195M

Previous: $160M+21.5%
EPS (adj)

$0.14

Previous: $0.08+75.0%
Customers with >$5k ARR

22.5K

Previous: 20.3K+11.1%
Net Dollar Retention Rate

103.0%

Previous: 108.0%-4.6%
Operating Cash Flow Margin

21.3%

No prior period
Adjusted Free Cash Flow Margin

21.4%

No prior period
Non-GAAP Operating Margin

20.7%

No prior period
Net Income

-$21.9M

Previous: -$28.1M+22.0%
Operating Income

-$23.8M

Previous: -$40M+40.6%
Gross Profit

$165M

Previous: $133M+24.0%

Revenue & EPS history

Freshworks · Revenue · Quarterly

$195M

Q4 2024+21.5%vs Q4 2023
Beat estimate in 13 of 15 quarters(87%)
ActualEstimate

Forward guidance

Freshworks expects revenue between $190.0 million and $193.0 million in Q1 2025, reflecting a 15-17% YoY growth. Non-GAAP income from operations is expected to range between $32.5 million and $34.5 million, while non-GAAP EPS is projected between $0.12 and $0.14.

Tailwinds

  • Strong revenue growth projected between 15% and 17%
  • Continued expansion in customer base
  • Positive free cash flow outlook
  • Non-GAAP operating income expected to improve
  • Operational efficiency initiatives yielding results

Headwinds

  • Decline in net dollar retention rate
  • GAAP operating loss remains a concern
  • Ongoing restructuring costs impacting profitability
  • Foreign exchange fluctuations affecting revenue visibility
  • Competitive pressures from established SaaS providers

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 2024

Historical avgQ4 2024

-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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