A Freshworks Inc(Nasdaq: FRSH), global software company with AI centered on people, announced last Tuesday (11) the financial results for the fourth quarter and the full year ended December 31, 2024
"Freshworks once again exceeded its previous estimates in the fourth quarter across all key metrics", recording a solid quarter with revenue growth of 22% compared to the previous year, totaling US$ 194,6 million, operating cash flow margin of 21% and adjusted free cash flow margin of 21%, said Dennis Woodside, CEO and President of Freshworks. "Companies are abandoning traditional suppliers and migrating to Freshworks in search of modern and uncomplicated solutions for customer and employee experience".”
Fourth Quarter 2024 Financial Results Summary
- Revenue:The total revenue was US$194,6 million, a growth of 22% compared to US$160,1 million in the fourth quarter of 2023, and 21% adjusted for constant currency
- GAAP (Loss) from Operations:The GAAP loss from operations was US$ (23,8 million, compared to US$ (40,0 million in the fourth quarter of 2023
- Non-GAAP Income from Operations:The non-GAAP operating profit was US$ 40,3 million, compared to US$11,5 million in the fourth quarter of 2023
- GAAP (Loss) Per Share:The basic and diluted GAAP loss per share was US$ (0,07), based on 303,6 million shares in weighted average, compared to US$ (0,in the fourth quarter of 2023
- Non-GAAP Earnings per Share:The diluted non-GAAP earnings per share was $0,14, based on 306,1 million shares in weighted average, compared to US$0,08 in the fourth quarter of 2023
- Operating Cash Flow:The operating cash flow was US$41,4 million, compared to US$30,9 million in the fourth quarter of 2023
- Adjusted Free Cash Flow:The adjusted free cash flow was US$41,7 million, compared to US$28,6 million in the fourth quarter of 2023
- Cash and Cash Equivalents:Box, cash equivalents and negotiable securities totaled US$1,7 billion on December 31, 2024
Full Year 2024 Financial Results Summary
- Revenue:The total revenue was US$720,4 million, representing a growth of 21% compared to US$596,4 million in 2023
- GAAP (Loss) from Operations:The GAAP loss from operations was US$ (138,6 million, compared to US$ (170,2 million in 2023
- Non-GAAP Income from Operations:The non-GAAP operating profit was $99,1 million, compared to US$44,5 million in 2023
- GAAP (Loss) Per Share:The basic and diluted GAAP loss per share was US$ (0,32), compared to US$ (0,47) in 2023
- Non-GAAP Earnings per Share:The diluted non-GAAP earnings per share was $0,43, compared to US$0,26 in 2023
- Operating Cash Flow:The operating cash flow was US$160,6 million, compared to US$86,2 million in 2023
- Adjusted Free Cash Flow:The adjusted free cash flow was US$153,3 million, compared to US$77,8 million in 2023
Key Metrics and Recent Highlights
- The number of customers contributing more than $5.000 in ARR was 22.558, an increase of 11% compared to the previous year
- The revenue retention rate was 103% (105% adjusted for constant currency)
- New clients include New Balance, Rawlings Sporting Goods, Sophos, Onfido and Mesa Airlines
- Appointment of Srinivasan Raghavan as Director of Products and Venkitesh Subramanian as Senior Vice President of Product Management for Customer Experience
- Announcement of strategic agreement with Unisys
Financial Outlook to 2025
The company expects revenue between US$190,0 – US$193,0 million in the first quarter of 2025 and between US$809,0 – US$821,0 million in the full year, with growth between 12% and 14%
