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%
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
Customers >$5k ARR

22.5K

Previous: 20.3K+11.1%
Net Dollar Retention Rate

103.0%

Previous: 108.0%-4.6%
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 16 quarters(81%)
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 19 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
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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