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Q1 23 EPS
$0.03
BEAT +250.00%
Est. $-0.02
Q1 23 Revenue
$137.7M
BEAT +2.56%
Est. $134.3M
vs S&P Since Q1 23
-110.1%
TRAILING MARKET
FRSH -28.2% vs S&P +81.9%
Market Reaction
Did FRSH Beat Earnings? Q1 2023 Results
Freshworks marked a pivotal milestone in Q1 2023, reporting its first quarter of non-GAAP operating profit as a public company while beating Wall Street expectations on both the top and bottom lines. The customer experience software maker posted non-… Read more Freshworks marked a pivotal milestone in Q1 2023, reporting its first quarter of non-GAAP operating profit as a public company while beating Wall Street expectations on both the top and bottom lines. The customer experience software maker posted non-GAAP diluted EPS of $0.03, a sharp swing from the prior year loss that left analysts' consensus estimate of negative $0.02 in the dust by 250.00%, as revenue climbed 20.1% year-over-year to $137.69 million, edging past the $134.26 million consensus by 2.56%. The profitability inflection was driven by meaningful operating leverage, with non-GAAP R&D and sales and marketing expenses both declining as a percentage of revenue even as absolute spending rose. Free cash flow swung to a positive $9.10 million from negative $1.39 million a year earlier, underscoring the improving business efficiency. Looking ahead, management raised its full-year non-GAAP operating profit midpoint to $5.00 million and set full-year revenue guidance at $580.00 million to $592.50 million, reflecting continued confidence in sustained profitable growth.
Key Takeaways
- • 20% year-over-year revenue growth (23% constant currency)
- • First quarter of non-GAAP operating profit as a public company at $3.9 million
- • Improved business efficiency with $9.1 million of free cash flow
- • Customers contributing more than $5,000 in ARR grew 18% year-over-year to 18,441
- • Non-GAAP gross margin improved to 83.0% from 82.2% year-over-year
FRSH YoY Financials
Q1 2023 vs Q1 2022, source: SEC Filings
“Freshworks had a strong quarter of execution in Q1. We exceeded our financial estimates for revenue growth and delivered our first quarter of non-GAAP operating profit as a public company. More companies are taking advantage of the opportunity to buy software that is designed to scale to meet their IT and customer needs.”
— Girish Mathrubootham, Q1 2023 Earnings Press Release
FRSH Earnings Trends
FRSH vs Market 30 Day Price Reactions
30-day stock return vs benchmark after each earnings
FRSH EPS Trend
Earnings per share: estimate vs actual
FRSH Revenue Trend
Quarterly revenue: estimate vs actual
FRSH Quarterly Results
12 quarters of earnings data
| Quarter | EPS Est. | EPS Act. | Surprise | Revenue | Rev. Surprise |
|---|---|---|---|---|---|
| Q1 26 MISS | $0.11 | $0.11 | -2.14% | $228.6M | +2.44% |
| Q4 25 BEAT FY | $0.11 | $0.14 | +23.78% | $222.7M | +1.82% |
| FY Full Year | — | $0.66 | — | $838.8M | — |
| Q3 25 BEAT | $0.13 | $0.16 | +25.49% | $215.1M | +3.02% |
| Q2 25 BEAT | $0.12 | $0.18 | +55.84% | $204.7M | +2.89% |
| Q1 25 BEAT | $0.13 | $0.18 | +39.32% | $196.3M | +2.28% |
| Q4 24 BEAT FY | $0.12 | $0.14 | +16.86% | $194.6M | +1.19% |
| FY Full Year | — | $0.43 | — | $720.4M | — |
| Q3 24 BEAT | $0.08 | $0.11 | +37.50% | $186.6M | +0.00% |
| Q2 24 BEAT | $0.06 | $0.08 | +33.33% | $174.1M | +3.03% |
| Q1 24 BEAT | $0.08 | $0.10 | +25.00% | $165.1M | +0.00% |
| Q4 23 BEAT FY | $0.05 | $0.08 | +60.00% | $160.1M | +1.02% |
| FY Full Year | — | $0.26 | — | $596.4M | — |
| Q3 23 BEAT | $0.05 | $0.08 | +60.00% | $153.6M | +1.89% |
| Q1 23 BEAT | $-0.02 | $0.03 | +250.00% | $137.7M | +2.56% |