Latest news with #DennisWoodside
&w=3840&q=100)
Business Standard
30-04-2025
- Business
- Business Standard
Freshworks reports 19% revenue growth in Q1, reaching $196.3 million
Freshworks, a people-first artificial intelligence service software provider, reported a 19 per cent increase in revenue for the JanuaryMarch 2025 quarter, reaching USD 196.3 million, a top official said. The company had recorded revenue of USD 165.1 million during the corresponding quarter of the previous year. Commenting on the financial performance, Freshworks Chief Executive Officer and President Dennis Woodside said: Freshworks had another fantastic quarter, outperforming our previously provided financial estimates in Q1, with revenue growing 19 per cent year-on-year to USD 196.3 million, an operating cash flow margin of 30 per cent, and an adjusted free cash flow margin of 28 per cent. We continue to outperform because businesses are choosing Freshworks for our uncomplicated customer and employee service solutions, he said in a company statement on Wednesday. The number of customers contributing more than USD 5,000 in Annual Recurring Revenue (ARR) was 23,275 during the quarter under reviewan increase of 13 per cent year-on-year. Regarding the outlook for the year, the company said in its statement that it expects to register revenue of USD 197.3 to USD 200.3 million in the second quarter, and USD 815.3 to USD 824.32 million for the full year 2025. Freshworks also noted that during the first quarter ending March 31, 2025, it launched a new global partner programme with expanded offerings for resellers and service delivery. (Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)
Time of India
30-04-2025
- Business
- Time of India
Operating efficiency, customer adoption lift Freshworks Q1 revenue 19%; net loss narrows sharply
Freshworks reported a strong March quarter, with revenue increasing by 19% to $196.3 million and a significantly narrowed net loss. The company's growth was driven by increased customer adoption and operating efficiency, with a focus on AI-powered solutions. Freshworks anticipates continued growth in Q2 and for the full year, projecting revenue between $815.3 million and $824.3 million. Tired of too many ads? Remove Ads Tired of too many ads? Remove Ads Nasdaq-listed software-as-a-service (SaaS) company Freshworks on Tuesday reported a 19% year-on-year increase in revenue to $196.3 million for the quarter ended March 31, 2025, up from $165.1 million a year San Mateo (California), and Chennai-headquartered company significantly narrowed its net loss to $1.3 million from $23.3 million in the same period last year, buoyed by higher operating efficiency and increased customer adoption 'Freshworks had another fantastic quarter. We outperformed all our financial metrics for growth and profitability in Q1. We continue to see that our uncomplicated customer and employee service solutions are winning against outdated legacy software vendors," Dennis Woodside, the company's CEO and president, said during the earnings call. "Companies are choosing our AI-powered solutions to remove complexity, improve efficiency and unlock growth.'The company posted a non-GAAP income from operations of $46.4 million, more than double the $21.8 million reported in Q1 2024. Net cash provided by operating activities also rose to $58 million, from $40.6 million a year said the number of customers contributing more than $5,000 in annual recurring revenue (ARR) rose 13% year-on-year to 23,275 during the quarter, while its net dollar retention rate, a key metric that measures revenue retention from existing customers, improved to 105%, from 103% in Q4 2024, though slightly down from 106% in Q1 last total operating expenses for the quarter rose 3% to $176.8 million, from $171.4 million last year, though it managed to reduce its sales and marketing expenses by around 6% during the currently works with more than 73,000 customers in over 120 countries across multiple verticals, including ecommerce, logistics, financial services, auto and the quarter, the company onboarded over 1,000 net customers, including All3Media, Broad River Retail, Freudenberg Group, The Christie NHS Foundation Trust, and Veracode. It also launched a new global partner programme aimed at expanding its reseller offerings and service delivery in Chennai in 2010, Freshworks initially targeted small and medium businesses (SMBs). However, in recent quarters, the company has increasingly focused on mid-market and enterprise customers to offset macroeconomic softness in its traditional SMB base. According to the company, more than 60% of its total annual recurring revenue (ARR) now comes from these outlined three strategic imperatives for Freshworks: investing in its employee experience (EX) business; delivering AI capabilities across its products and platforms to drive productivity gains for customers; and accelerating growth in its customer experience the second quarter of 2025, Freshworks expects revenue to be in the range of $197.3 million to $200.3 million, representing 13% to 15% year-on-year growth. For the full year, it projects revenue to range between $815.3 million and $824.3 AI capabilities, including the Freddy Copilot assistant, are also expected to continue driving adoption and monetisation across its customer and employee experience products.
Yahoo
30-04-2025
- Business
- Yahoo
Freshworks's (NASDAQ:FRSH) Q1 Sales Top Estimates, Stock Soars
Business software provider Freshworks (NASDAQ: FRSH) reported revenue ahead of Wall Street's expectations in Q1 CY2025, with sales up 18.9% year on year to $196.3 million. Guidance for next quarter's revenue was better than expected at $198.8 million at the midpoint, 0.6% above analysts' estimates. Its non-GAAP profit of $0.18 per share was 39.4% above analysts' consensus estimates. Is now the time to buy Freshworks? Find out in our full research report. Revenue: $196.3 million vs analyst estimates of $191.8 million (18.9% year-on-year growth, 2.3% beat) Adjusted EPS: $0.18 vs analyst estimates of $0.13 (39.4% beat) Adjusted Operating Income: $46.37 million vs analyst estimates of $33.27 million (23.6% margin, 39.4% beat) The company slightly lifted its revenue guidance for the full year to $819.8 million at the midpoint from $815 million Operating Margin: -5.3%, up from -19.5% in the same quarter last year Free Cash Flow Margin: 28.2%, up from 21.4% in the previous quarter Customers: 23,275 customers paying more than $5,000 annually Net Revenue Retention Rate: 105%, up from 103% in the previous quarter Billings: $203.3 million at quarter end, up 16.4% year on year Market Capitalization: $4.20 billion 'Freshworks had another fantastic quarter, outperforming our previously provided financial estimates in Q1 with revenue growing 19% year-over-year to $196.3 million, operating cash flow margin of 30% and adjusted free cash flow margin of 28%," said Dennis Woodside, Chief Executive Officer & President of Freshworks. Founded in Chennai, India in 2010 with the idea of creating a 'fresh' helpdesk product, Freshworks (NASDAQ: FRSH) offers a broad range of software targeted at small and medium-sized businesses. Examining a company's long-term performance can provide clues about its quality. Any business can experience short-term success, but top-performing ones enjoy sustained growth for years. Over the last three years, Freshworks grew its sales at a decent 22.9% compounded annual growth rate. Its growth was slightly above the average software company and shows its offerings resonate with customers. This quarter, Freshworks reported year-on-year revenue growth of 18.9%, and its $196.3 million of revenue exceeded Wall Street's estimates by 2.3%. Company management is currently guiding for a 14.2% year-on-year increase in sales next quarter. Looking further ahead, sell-side analysts expect revenue to grow 11.3% over the next 12 months, a deceleration versus the last three years. Despite the slowdown, this projection is above the sector average and indicates the market is baking in some success for its newer products and services. Unless you've been living under a rock, it should be obvious by now that generative AI is going to have a huge impact on how large corporations do business. While Nvidia and AMD are trading close to all-time highs, we prefer a lesser-known (but still profitable) stock benefiting from the rise of AI. Click here to access our free report one of our favorites growth stories. Billings is a non-GAAP metric that is often called 'cash revenue' because it shows how much money the company has collected from customers in a certain period. This is different from revenue, which must be recognized in pieces over the length of a contract. Freshworks's billings punched in at $203.3 million in Q1, and over the last four quarters, its growth was impressive as it averaged 19.2% year-on-year increases. This performance aligned with its total sales growth, indicating robust customer demand. The high level of cash collected from customers also enhances liquidity and provides a solid foundation for future investments and growth. One of the best parts about the software-as-a-service business model (and a reason why they trade at high valuation multiples) is that customers typically spend more on a company's products and services over time. Freshworks's net revenue retention rate, a key performance metric measuring how much money existing customers from a year ago are spending today, was 105% in Q1. This means Freshworks would've grown its revenue by 5.3% even if it didn't win any new customers over the last 12 months. Freshworks has a decent net retention rate, showing us that its customers not only tend to stick around but also get increasing value from its software over time. We were impressed by Freshworks's significant improvement in new large contract wins this quarter. We were also glad its billings outperformed Wall Street's estimates. Overall, we think this was a decent quarter with some key metrics above expectations. The stock traded up 9.4% to $15.70 immediately after reporting. Freshworks may have had a good quarter, but does that mean you should invest right now? When making that decision, it's important to consider its valuation, business qualities, as well as what has happened in the latest quarter. We cover that in our actionable full research report which you can read here, it's free. Sign in to access your portfolio
Yahoo
25-04-2025
- Business
- Yahoo
Sales Software Stocks Q4 Recap: Benchmarking Freshworks (NASDAQ:FRSH)
As the craze of earnings season draws to a close, here's a look back at some of the most exciting (and some less so) results from Q4. Today, we are looking at sales software stocks, starting with Freshworks (NASDAQ:FRSH). Companies need to be able to interact with and sell to their customers as efficiently as possible. This reality coupled with the ongoing migration of enterprises to the cloud drives demand for cloud-based customer relationship management (CRM) software that integrates data analytics with sales and marketing functions. The 4 sales software stocks we track reported a satisfactory Q4. As a group, revenues beat analysts' consensus estimates by 2.6% while next quarter's revenue guidance was in line. Amidst this news, share prices of the companies have had a rough stretch. On average, they are down 16.8% since the latest earnings results. Founded in Chennai, India in 2010 with the idea of creating a 'fresh' helpdesk product, Freshworks (NASDAQ: FRSH) offers a broad range of software targeted at small and medium-sized businesses. Freshworks reported revenues of $194.6 million, up 21.5% year on year. This print exceeded analysts' expectations by 2.7%. Overall, it was a strong quarter for the company with a solid beat of analysts' billings estimates and EPS guidance for next quarter exceeding analysts' expectations. '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%,' said Dennis Woodside, Chief Executive Officer & President of Freshworks. Freshworks scored the fastest revenue growth of the whole group. The company added 199 enterprise customers paying more than $5,000 annually to reach a total of 22,558. Investor expectations, however, were likely higher than Wall Street's published projections, leaving some wishing for even better results (analysts' consensus estimates are those published by big banks and advisory firms, not the investors who make buy and sell decisions). The stock is down 24.1% since reporting and currently trades at $13.55. Is now the time to buy Freshworks? Access our full analysis of the earnings results here, it's free. Founded in 2007 as DiscoveryOrg and renamed after a merger in 2019, ZoomInfo (NASDAQ:ZI) is a software as a service product that provides sales departments with access to a database of prospective clients. ZoomInfo reported revenues of $309.1 million, down 2.3% year on year, outperforming analysts' expectations by 3.8%. The business had an exceptional quarter with an impressive beat of analysts' billings estimates and accelerating growth in large customers. ZoomInfo delivered the highest full-year guidance raise among its peers. The company added 58 enterprise customers paying more than $100,000 annually to reach a total of 1,867. Although it had a fine quarter compared its peers, the market seems unhappy with the results as the stock is down 6.8% since reporting. It currently trades at $8.89. Is now the time to buy ZoomInfo? Access our full analysis of the earnings results here, it's free. Launched in 1999 from a rented one-bedroom apartment in San Francisco by Marc Benioff and his three co-founders, Salesforce (NYSE:CRM) is a software-as-a-service platform that helps companies access, manage, and share sales information such as leads. Salesforce reported revenues of $9.99 billion, up 7.6% year on year, falling short of analysts' expectations by 0.5%. It was a slower quarter as it posted EPS guidance for next quarter missing analysts' expectations. Salesforce delivered the weakest performance against analyst estimates and weakest full-year guidance update in the group. As expected, the stock is down 13.3% since the results and currently trades at $266.50. Read our full analysis of Salesforce's results here. Started in 2006 by two MIT grad students, HubSpot (NYSE:HUBS) is a software-as-a-service platform that helps small and medium-sized businesses market themselves, sell, and get found on the internet. HubSpot reported revenues of $703.2 million, up 20.8% year on year. This print beat analysts' expectations by 4.4%. Taking a step back, it was a mixed quarter as it also logged a solid beat of analysts' EBITDA estimates but EPS guidance for next quarter missing analysts' expectations significantly. HubSpot scored the biggest analyst estimates beat among its peers. The company added 9,811 customers to reach a total of 247,939. The stock is down 22.9% since reporting and currently trades at $604.99. Read our full, actionable report on HubSpot here, it's free. Thanks to the Fed's series of rate hikes in 2022 and 2023, inflation has cooled significantly from its post-pandemic highs, drawing closer to the 2% goal. This disinflation has occurred without severely impacting economic growth, suggesting the success of a soft landing. The stock market thrived in 2024, spurred by recent rate cuts (0.5% in September and 0.25% in November), and a notable surge followed Donald Trump's presidential election win in November, propelling indices to historic highs. Nonetheless, the outlook for 2025 remains clouded by potential trade policy changes and corporate tax discussions, which could impact business confidence and growth. The path forward holds both optimism and caution as new policies take shape. Want to invest in winners with rock-solid fundamentals? Check out our Hidden Gem Stocks and add them to your watchlist. These companies are poised for growth regardless of the political or macroeconomic climate. Join Paid Stock Investor Research Help us make StockStory more helpful to investors like yourself. Join our paid user research session and receive a $50 Amazon gift card for your opinions. Sign up here.
Yahoo
12-02-2025
- Business
- Yahoo
Freshworks forecasts annual revenue above estimates on steady software demand
By Jaspreet Singh (Reuters) - Freshworks forecast annual revenue and profit above Wall Street estimates on Tuesday, betting on growing demand for its enterprise software for managing digital operations, sending its shares up 6% in extended trading. The company projected its first-quarter revenue slightly below market expectations but reported upbeat revenue and adjusted profit per share for the fourth quarter. See for yourself — The Yodel is the go-to source for daily news, entertainment and feel-good stories. By signing up, you agree to our Terms and Privacy Policy. Clients turn to artificial intelligence-powered software offered by companies such as Freshworks, ServiceNow and Salesforce to manage their IT services and automate certain business operations. "Our AI is easy to use, easy to get up and running. We have customers that are launching our AI products in an hour," CEO Dennis Woodside said in an interview. "We had one customer come to us, who had been a 13-year customer of ServiceNow. They are a hardware manufacturer," Woodside added, referring to a competitive edge over rivals, particularly in the mid-market segment. Freshworks offers an AI-driven chatbot, Freddy AI, designed to help clients resolve customer inquiries, automate routine tasks and provide tailored solutions. Freshworks forecast its full year 2025 revenue between $809 million and $821 million, the midpoint of which was above analysts' average estimate of $813 million, according to data compiled by LSEG. The company projected annual adjusted profit per share of 52 cents to 54 cents, above estimates of 52 cents. The midpoint of the first-quarter revenue forecast of $190 million to $193 million was slightly below estimates of $192.2 million. Freshworks expects adjusted profit per share forecast of 12 cents to 14 cents for the first quarter, above estimates of 12 cents. Revenue for the fourth quarter ended December 31 grew 22% to $194.6 million, beating estimates of $189.4 million. Its adjusted profit per share of 14 cents in the quarter also exceeded estimates of 10 cents.
