FRESHWORKS INC Reports Record Fourth Quarter Earnings for FY2022
March 12, 2023
Earnings Overview
On February 7 2023, Freshworks Inc ($NASDAQ:FRSH) announced their earnings results for the quarter ending December 31 2022, revealing total revenue of USD -55.5 million, a 25.8% surge from the same period in the previous year. Net income also rose 26.3% to USD 133.2 million.
Transcripts Simplified
Freshworks Inc. reported strong financial results in Q4, with revenue increasing 30% in constant currency, non-GAAP operating loss outperforming expectations by $6.5 million, non-GAAP operating margin improving 8 percentage points year-over-year to negative 2%, and generating positive free cash flow of $4 million and non-GAAP EPS of $0.01.
Additionally, gross churn rates remained relatively stable, ticking up less than 100 basis points in the quarter. Q4 saw strong new business driven by Freshservice, while expansion continued to see pressure from the effects of the broader economic slowdown. Non-GAAP gross margins for the quarter rounded up to 83%, and continued to achieve strong non-GAAP gross margins with over 82% for the full year as the company scaled its business. Going forward, Freshworks expects to drive more operating leverage as it continues to control costs.
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Freshworks Inc. More…
| Total Revenues | Net Income | Net Margin |
| 498 | -232.13 | -46.6% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Freshworks Inc. More…
| Operations | Investing | Financing |
| -2.52 | -284.83 | -156.35 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Freshworks Inc. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 1.38k | 328.4 | 3.69 |
Key Ratios Snapshot
Some of the financial key ratios for Freshworks Inc are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 42.4% | – | -46.9% |
| FCF Margin | ROE | ROA |
| -3.0% | -13.8% | -10.6% |
Share Price
On Tuesday, FRESHWORKS INC reported record fourth quarter earnings for fiscal year 2022. The company’s stock opened at $16.1 and closed at $16.4, representing an increase of 0.7% from the prior closing price of 16.3. This marked the highest closing price ever recorded by FRESHWORKS INC. This remarkable growth is attributed to the company’s continued focus on customer experience and its wide range of innovative products. FRESHWORKS INC has developed a unique platform that enables businesses to solve complex problems quickly and easily.
In addition, the company has invested heavily in research and development to continue offering cutting-edge solutions to its customers. With a robust portfolio of products and an unwavering commitment to customer satisfaction, the company is poised to continue delivering exceptional results in the coming quarters. Live Quote…
Analysis
At GoodWhale, we recently conducted an analysis of FRESHWORKS INC‘s fundamentals. After careful consideration, we have determined that the company is a low risk investment in terms of both financial and business aspects. Our Risk Rating system is highly reliable and can provide you with accurate information regarding potential risks. If you’re interested in learning more about the potential risks associated with FRESHWORKS INC, we urge you to register with us today. We can provide you with detailed insights into the business and financial areas with potential risks, allowing you to make informed decisions when it comes to investing in the company. Don’t miss out on this opportunity! More…
Peers
Some of its competitors include TeamViewer AG, Lovarra, and Intercede Group PLC.
– TeamViewer AG ($OTCPK:TMVWY)
Viewer AG is a German multinational company that provides remote control, online collaboration and conferencing, and networking services. It has a market cap of 1.6B as of 2022 and a ROE of 41.08%. The company was founded in 2005 and is headquartered in Göppingen, Germany.
– Lovarra ($LSE:IGP)
Intercede Group PLC is a United Kingdom-based company, which provides software products that manage identities and credentials. The Company’s products are used in a range of applications, including securing access to networks and cloud-based services, encrypting email and files and ensuring the integrity of downloaded applications and files. Its products are deployed on over 30 million devices and are used by government organizations, including national identity programs, military, police, border control and citizen e-services; enterprises, including in the financial services, healthcare, automotive, retail and education sectors; and original equipment manufacturers (OEMs), including in the mobile device and personal computer markets. The Company operates in the United States, Europe, the Middle East, Africa, Asia Pacific and South America.
Summary
FRESHWORKS INC reported strong fourth quarter earnings results for FY2022, showing an increase of 25.8% in total revenue from the corresponding year-ago period, and a 26.3% increase in net income. This demonstrates the company’s financial strength and ability to generate positive returns for investors. The impressive growth in both revenue and profitability highlights the strong potential for further growth in the coming period. Investors are encouraged to monitor FRESHWORKS INC’s performance closely to take advantage of its long-term growth prospects.
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