Live Nasdaq Composite: Markets Take Breather After Impressive Q2 Showing on Easing Oil Outlook
Q2 24 EPS
$0.08
BEAT +33.33%
Est. $0.06
Q2 24 Revenue
$174.1M
BEAT +3.03%
Est. $169.0M
vs S&P Since Q2 24
-62.6%
TRAILING MARKET
FRSH -27.9% vs S&P +34.7%
Market Reaction
Did FRSH Beat Earnings? Q2 2024 Results
Freshworks posted a clean beat on both the top and bottom lines in the second quarter of 2024, with revenue climbing 20% year-over-year to $174.13 million against a consensus estimate of $169.01 million, while non-GAAP diluted EPS of $0.08 cleared th… Read more Freshworks posted a clean beat on both the top and bottom lines in the second quarter of 2024, with revenue climbing 20% year-over-year to $174.13 million against a consensus estimate of $169.01 million, while non-GAAP diluted EPS of $0.08 cleared the $0.06 analyst estimate by 33.33%. The standout driver behind the quarter was the June 6 completion of the Device42 acquisition, which bolstered Freshworks' IT Asset Management capabilities and signals a deliberate push into mid-market and enterprise accounts. Profitability also improved meaningfully, as the company's GAAP net loss narrowed to $20.18 million from $35.66 million a year ago, and CEO Dennis Woodside pointed to a 19% free cash flow margin as evidence of tightening financial discipline. Customer momentum held steady, with accounts contributing more than $5,000 in ARR growing 14% year-over-year to 21,744. Looking ahead, Freshworks guided Q3 revenue to $180.00 to $183.00 million and reaffirmed full-year 2024 revenue of $707.00 to $713.00 million, reflecting continued confidence in its AI-driven product portfolio.
Key Takeaways
- • 20% year-over-year revenue growth (20% on constant currency basis)
- • Increasing financial discipline with 19% free cash flow margin
- • AI-powered solutions meeting customer needs
- • 14% year-over-year growth in customers contributing more than $5,000 in ARR to 21,744
- • Net dollar retention rate of 106%
FRSH YoY Financials
Q2 2024 vs Q2 2023, source: SEC Filings
“Freshworks delivered a solid Q2, growing revenue to $174.1 million with a free cash flow margin of 19%. Our results reflect our increasing financial discipline and our ability to meet the needs of customers with our AI-powered solutions. With clear strategic priorities in place, we are well positioned to seize the massive opportunity in front of us.”
— Dennis Woodside, Q2 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% |