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Q3 24 EPS
$0.11
BEAT +37.50%
Est. $0.08
Q3 24 Revenue
$186.6M
BEAT +0.00%
Est. $186.6M
vs S&P Since Q3 24
-57.9%
TRAILING MARKET
FRSH -33.3% vs S&P +24.6%
Market Reaction
Did FRSH Beat Earnings? Q3 2024 Results
Freshworks delivered a strong third quarter, posting non-GAAP earnings per share of $0.11 against a consensus estimate of $0.08, a beat of 37.50%, while revenue of $186.57 million grew 21.5% year over year and landed precisely in line with expectatio… Read more Freshworks delivered a strong third quarter, posting non-GAAP earnings per share of $0.11 against a consensus estimate of $0.08, a beat of 37.50%, while revenue of $186.57 million grew 21.5% year over year and landed precisely in line with expectations. The cloud software company attributed the momentum to accelerating customer adoption of its AI-powered products and solid performance across mid-market and enterprise segments, with free cash flow nearly doubling to $40.10 million and non-GAAP operating margin expanding to 12.8% from 11.3% a year ago. The quarter also carried significant structural news, as CEO Dennis Woodside announced a 13% global workforce reduction affecting roughly 660 employees, framing the realignment around three core priorities: Employee Experience, AI, and Customer Experience. The move sparked a sharp rally in the stock, reflecting investor relief that the reorganization was paired with raised guidance; Freshworks now expects full-year 2024 revenue of $713.60 to $716.60 million, representing approximately 20% growth, with non-GAAP EPS of $0.38 to $0.39.
Key Takeaways
- • 22% year-over-year revenue growth (22% on constant currency basis)
- • Non-GAAP operating margin improved to 12.8% from 11.3% in Q3 2023
- • Free cash flow margin improved to 21% from 14% in Q3 2023
- • Customers contributing more than $5,000 in ARR grew 14% year-over-year to 22,359
- • Net dollar retention rate of 107% (105% adjusting for constant currency)
- • Non-GAAP gross margin improved to 85.7% from 84.0% in Q3 2023
FRSH YoY Financials
Q3 2024 vs Q3 2023, source: SEC Filings
“Freshworks delivered a strong third quarter, with revenue growing 22% year over year to $186.6 million, net cash provided by operating activities margin improving to 23%, and free cash flow margin improving to 21%.”
— Dennis Woodside, Q3 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% |