Live Nasdaq Composite: Markets Take Breather After Impressive Q2 Showing on Easing Oil Outlook
Q1 24 EPS
$0.10
BEAT +25.00%
Est. $0.08
Q1 24 Revenue
$165.1M
BEAT +0.00%
Est. $165.1M
vs S&P Since Q1 24
-73.1%
TRAILING MARKET
FRSH -26.2% vs S&P +46.9%
Market Reaction
Did FRSH Beat Earnings? Q1 2024 Results
Freshworks posted a confident first quarter in 2024, beating earnings expectations while delivering steady top-line growth as profitability improvements took center stage. The customer engagement software company reported non-GAAP EPS of $0.10, clear… Read more Freshworks posted a confident first quarter in 2024, beating earnings expectations while delivering steady top-line growth as profitability improvements took center stage. The customer engagement software company reported non-GAAP EPS of $0.10, clearing the $0.08 consensus estimate by 25%, while revenue of $165.14 million rose 19.9% year over year and landed precisely in line with analyst forecasts. The standout story was margin expansion, with non-GAAP operating margin climbing to 13.2% from just 2.8% a year earlier, reflecting meaningful operating leverage as the company scaled its cost base. Free cash flow of $38.67 million, representing a roughly 23.4% margin, underscored the improving financial discipline. The quarter also brought a significant leadership transition, with founder Girish Mathrubootham moving to Executive Chairman and Dennis Woodside assuming the CEO role. Looking ahead, Freshworks guided Q2 revenue of $168.00 to $170.00 million and full-year revenue of $695.00 to $705.00 million, implying continued 17-18% annual growth.
Key Takeaways
- • 20% year-over-year revenue growth (19% on constant currency basis)
- • Non-GAAP operating margin expansion to 13.2% from 2.8% in Q1 2023
- • Free cash flow of $38.7 million, up from $9.1 million in Q1 2023
- • Customers contributing more than $5,000 in ARR grew 11% YoY to 20,549
- • Net dollar retention rate of 106%
FRSH YoY Financials
Q1 2024 vs Q1 2023, source: SEC Filings
“Freshworks delivered 20% revenue growth with improving profitability and a strong free cash flow margin in Q1. I'm particularly proud of the progress we've made in AI innovation across our products, and its tangible impact on our customers. We remain more focused than ever on product innovation, bringing more large customers onto our platform, and expanding adoption of products across our portfolio.”
— Girish Mathrubootham, Q1 2024 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% |