Companies

Freshworks Inc Class A

NASDAQ: FRSH
$13.46
▼ $0.46 (−3.30%) today
Markets closed · 7:49pm ET

Q4 2024 Earnings

Reported Feb 11, 2025, 4:18pm ET · SEC source
$0.14
Beat +16.86%
EPS · est. $0.12
$194.6M
Beat +1.19%
Revenue · est. $192.3M
−8.5%
Trailing market
FRSH vs S&P since report
1 quarter
Consecutive EPS beats

Market Reaction

% change · around the report
−10%−5%0+5%Feb 11Feb 12report 4:18pm ETearnings−0.2%−6.4%
−10%−5%0+5%Feb 11Feb 12earnings−0.2%−6.4%
FRSH −6.4%S&P 500 −0.2%
−10%−5%0+5%Feb 11Feb 12report 4:18pm ETearnings+0.3%−6.4%
−10%−5%0+5%Feb 11Feb 12earnings+0.3%−6.4%
FRSH −6.4%NASDAQ +0.3%
−15%−10%−5%0Feb 10Feb 19report 4:18pm ETearnings+1.3%−11.8%
−15%−10%−5%0Feb 10Feb 19earnings+1.3%−11.8%
FRSH −11.8%S&P 500 +1.3%
−12%−6%0Feb 10Feb 19report 4:18pm ETearnings+2.2%−11.8%
−12%−6%0Feb 10Feb 19earnings+2.2%−11.8%
FRSH −11.8%NASDAQ +2.2%
−0.34%
Day of report
−2.08%
Next session
+1.80%
One week
−14.49%
30 days

S&P 500 over the same 30 days: −6.00%.

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 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

“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%.”

Freshworks CEO, on the earnings call

Forward Guidance & Outlook

For Q1 2025, Freshworks expects revenue of $190.0-$193.0 million (15-17% YoY growth, 16-18% constant currency), non-GAAP operating income of $32.5-$34.5 million, and non-GAAP EPS of $0.12-$0.14. For full year 2025, the company expects revenue of $809.0-$821.0 million (12-14% YoY growth, 13-15% constant currency), non-GAAP operating income of $131.0-$139.0 million, and non-GAAP EPS of $0.52-$0.54.

FRSH YoY Financials

Q4 2024 vs Q4 2023 · SEC filings Q4 2023 Q4 2024
$0$70.0M$140.0M$210.0M$160.1M$194.6MRevenue$133.1M$165.1MGross Profit$-16,924,171$-23,792,000Operating Income$-17,949,348$-21,900,000Net Income
$0$70.0M$140.0M$210.0MRevenueGross ProfitOperating IncomeNet Income

Figures from SEC filings and company reports. Not investment advice.