Freshworks shares gain momentum with AI-driven growth, boosted by rising customer adoption, and increased demand for copilot and self-service solutions.
Shares of Freshworks are poised to rebound further after Q3 results showcased accelerating revenue and yet another raise to its full-year guidance. The company also announced layoffs of ~13% of its headcount, a move intended to help boost the company's margin position. Freshworks boasts a broad software portfolio, blue-chip customer base, excellent growth-profitability balance, and a highly liquid, debt-free balance sheet.
Freshwork (FRSH) might move higher on growing optimism about its earnings prospects, which is reflected by its upgrade to a Zacks Rank #2 (Buy).
Freshworks (FRSH) has been significantly punished by the market in 2024 but is poised for a rebound in 2025 due to low valuation. Interest rate cuts and a stronger economic backdrop in 2025 will boost software stocks, benefiting Freshworks' growth prospects. FRSH's valuation is attractive, trading at 26x FCF, expected to drop to 23x in 2025, making it a buy for long-term investors.
Freshwork (FRSH) shares have started gaining and might continue moving higher in the near term, as indicated by solid earnings estimate revisions.
Shares of software development company Freshworks Inc NASDAQ: FRSH have been on a bumpy ride over the past year, shedding 55% of their value from December through October, even as the broader market enjoyed record highs. This lagging performance was a tough pill to swallow for investors.
The software company posted better-than-feared earnings, and the stock soared.
Freshworks' strong earnings, improving free cash flow, and low investor expectations make it a compelling buy at 21x forward free cash flow. Freshworks' suite of affordable, user-friendly software solutions, including AI-driven automation, targets mid-market and enterprise customers, driving significant growth in the EX business. Despite moderate revenue growth rates and intense competition, Freshworks' solid balance sheet and cash flow potential justify its attractive valuation.
Freshworks Inc. (FRSH) Q3 2024 Earnings Call Transcript
Freshworks Inc. (FRSH) came out with quarterly earnings of $0.11 per share, beating the Zacks Consensus Estimate of $0.08 per share. This compares to earnings of $0.08 per share a year ago.
Freshworks raised its annual revenue and profit forecasts on Wednesday following upbeat third-quarter results, as clients turn to the company's AI-driven products to manage their IT services.
Freshwork (FRSH) possesses the right combination of the two key ingredients for a likely earnings beat in its upcoming report. Get prepared with the key expectations.