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Freshworks

Freshworks (FRSH) Q4 2024 Earnings

Reported Feb 11, 2025 at 4:18 PM ET · SEC Source

Q4 24 EPS

$0.14

BEAT +16.86%

Est. $0.12

Q4 24 Revenue

$194.6M

BEAT +1.19%

Est. $192.3M

vs S&P Since Q4 24

-68.8%

TRAILING MARKET

FRSH -45.8% vs S&P +23.0%

Full Year 2024 Results

FY 24 EPS

$0.43

FY 24 Revenue

$720.4M

Market Reaction

Did FRSH Beat Earnings? Q4 2024 Results

Freshworks closed out 2024 on a strong note, posting Q4 revenue of $194.57 million, up 21.5% year over year and ahead of the $192.29 million consensus estimate, while adjusted earnings per share of $0.14 beat the $0.12 consensus by 16.86%. The stando… Read more Freshworks closed out 2024 on a strong note, posting Q4 revenue of $194.57 million, up 21.5% year over year and ahead of the $192.29 million consensus estimate, while adjusted earnings per share of $0.14 beat the $0.12 consensus by 16.86%. The standout driver behind the profitability beat was a dramatic expansion in non-GAAP operating income, which surged to $40.31 million from just $11.54 million a year earlier, pushing non-GAAP operating margin to 20.7% from 7.2%. Cash generation reinforced the picture, with Q4 adjusted free cash flow of $41.70 million and a full-year cash and marketable securities balance of $1.07 billion. Not everything pointed upward, however; net dollar retention slipped to 103% from 108% a year ago, hinting at softer expansion revenue trends heading into 2025. The company guided full-year 2025 revenue of $809.00 million to $821.00 million, reflecting 12-14% growth, a step down from 2024's pace, with non-GAAP EPS expected in the range of $0.52 to $0.54.

Key Takeaways

  • • 22% year-over-year revenue growth in Q4 2024
  • • Non-GAAP operating margin expanded to 20.7% from 7.2% year-over-year
  • • Adjusted free cash flow margin of 21% in Q4
  • • Customers contributing more than $5,000 in ARR grew 11% YoY to 22,558
  • • Companies migrating from legacy vendors to Freshworks solutions
24/7 Wall St

FRSH YoY Financials

Q4 2024 vs Q4 2023, source: SEC Filings

“Freshworks outperformed its previously provided estimates again in Q4 across all our key metrics, delivering another strong quarter with revenue growing 22% year over year to $194.6 million, operating cash flow margin of 21%, and an adjusted free cash flow margin of 21%.”

— Dennis Woodside, Q4 2024 Earnings Press Release

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