Freshworks Inc Class A

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.