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Q4 23 EPS
$0.08
BEAT +60.00%
Est. $0.05
Q4 23 Revenue
$160.1M
BEAT +1.02%
Est. $158.5M
vs S&P Since Q4 23
-103.5%
TRAILING MARKET
FRSH -54.6% vs S&P +49.0%
Full Year 2023 Results
FY 23 EPS
$0.26
FY 23 Revenue
$596.4M
Market Reaction
Did FRSH Beat Earnings? Q4 2023 Results
Freshworks closed out 2023 on a strong note, posting Q4 revenue of $160.11 million, up 20.2% year over year, and non-GAAP earnings per share of $0.08, well ahead of the $0.05 consensus estimate by 60.00%, as a meaningful shift toward profitability to… Read more Freshworks closed out 2023 on a strong note, posting Q4 revenue of $160.11 million, up 20.2% year over year, and non-GAAP earnings per share of $0.08, well ahead of the $0.05 consensus estimate by 60.00%, as a meaningful shift toward profitability took hold across the business. Revenue also edged past the $158.50 million analyst consensus, reflecting steady demand for the company's customer service and IT management software. The clearest driver of the upside was an operational efficiency push that swung non-GAAP operating income to $11.54 million from a loss of $2.77 million in the year-ago quarter, expanding non-GAAP operating margin to 7.2% from negative 2.1%. The company's upmarket momentum also held firm, with customers contributing more than $5,000 in ARR growing 14% year over year to 20,261. Looking ahead, Freshworks guided full-year 2024 revenue of $703.50 million to $711.50 million, representing 18-19% growth, with non-GAAP EPS of $0.29 to $0.31, signaling confidence that its profitability trajectory will continue.
Key Takeaways
- • 20% year-over-year revenue growth in Q4 2023
- • Non-GAAP operating margin improved to 7.2% from -2.1% in Q4 2022
- • Free cash flow of $28.6 million in Q4, up from $4.0 million in Q4 2022
- • Customers contributing more than $5,000 in ARR grew 14% year-over-year to 20,261
- • Net dollar retention rate of 108%
- • Improved go-to-market strategy driving more upmarket deals
FRSH YoY Financials
Q4 2023 vs Q4 2022, source: SEC Filings
“At Freshworks, we delivered a strong finish to the year, outperforming our financial estimates across the board in Q4.”
— Girish Mathrubootham, Q4 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% |