Freshworks: A SaaS Gem Worth Your Investment
Freshworks stands out in the SaaS market by offering a lower total cost of ownership for its solutions compared to major competitors like ServiceNow and Salesforce. The company's cloud-based solutions target customer service, ITSM, CRM, and marketing automation, enhancing both customer and employee experiences. Valuation metrics show Freshworks trades at a lower forward P/S and P/S/G ratio than peers, suggesting relative undervaluation given its growth profile.
Freshworks: 3 Things To Watch Ahead Of Q2 Earnings
I remain bullish on Freshworks, reiterating my 'buy' rating due to strong growth, improving profitability, and attractive valuation versus peers. Key Q2 watchpoints: financial performance versus guidance, EX/CX segment growth dynamics, and AI feature adoption and monetization progress. Freshservice (EX) is driving growth, while Freshdesk (CX) lags; steady CX growth is crucial to avoid valuation drag.
FRSH Streamlines EX Management With AI-Powered Freshservice Journeys
Freshworks launches Freshservice Journeys to streamline IT, HR and facilities workflows, driving employee engagement and enterprise growth.
Freshworks (FRSH) Moves to Strong Buy: Rationale Behind the Upgrade
Freshworks (FRSH) has been upgraded to a Zacks Rank #1 (Strong Buy), reflecting growing optimism about the company's earnings prospects. This might drive the stock higher in the near term.
Freshworks: A Profit-Ready Play On AI Adoption
Freshworks' fundamentals have improved significantly despite a 72% drawdown, with steady revenue growth and improved profitability. Valuation is attractive at 4.5X EV/sales and 26.2X forward P/E, much cheaper than peers. Risks include AI execution, intense competition, and uncertainty in forecasting due to rapid innovation needs.
FRSH Boosts Customer & Employee Service With Freddy Agentic AI Platform
Freshworks unveils Freddy Agentic AI, a platform that automates complex tasks across support teams - no coding needed.
Freshworks: Neutral Outlook As Positives Are Balanced By The Negatives
I rate Freshworks as a hold due to macro headwinds, internal restructuring, and AI monetization uncertainty despite solid 1Q25 results. FRSH's 1Q25 earnings showed strong growth in the EX segment and profitability, with a notable 1,100 net new paying customers added. Freddy AI adoption is promising, with significant traction in large deals, but it's still early, representing less than 10% of the customer base.
Why Freshworks Might Be The SaaS Bargain You've Overlooked
Freshworks demonstrates strong financial health with 20% YoY revenue growth, expanding margins, and significant cash generation, positioning it on the cusp of profitability. Despite a lower EV/Revenue multiple of 4.4x compared to peers like HubSpot and ServiceNow, Freshworks' fundamentals and growth metrics suggest it is undervalued. The company's AI initiatives, Freddy AI Agent and Freddy AI Copilot, show promising adoption but need continued success to maintain market relevance.
Freshworks: Tremendous Value That Shouldn't Be Ignored
Freshworks presents a compelling "growth at a reasonable price" opportunity, with a 4.0x EV/FY25 revenue multiple, well below many peers. Despite a volatile macro environment, Freshworks reported a Q1 revenue growth of 19% y/y, beating Wall Street expectations and showcasing strong enterprise client acquisition. The company's profitability surged 10 points y/y with pro forma operating margins at 23.6%, driven by reduced sales and marketing expenses, placing Freshworks in the "Rule of 40" category.
Freshworks Inc. (FRSH) Q1 2025 Earnings Call Transcript
Freshworks Inc. (NASDAQ:FRSH ) Q1 2025 Earnings Conference Call April 29, 2025 5:00 PM ET Company Participants Joon Huh - Head of Investor Relations Dennis Woodside - President & Chief Executive Officer Tyler Sloat - Chief Operating Officer & Chief Financial Officer Conference Call Participants Rob Oliver - Baird Elizabeth Porter - Morgan Stanley Scott Berg - Needham & Company Pinjalim Bora - JPMorgan Alex Zukin - Wolfe Research Brent Thill - Jefferies David Haynes - Canaccord Genuity Patrick Walravens - Citizens JMP Brent Bracelin - Piper Sandler Operator Welcome to Freshworks First Quarter 2025 Earnings Conference Call. At this time participants are in a listen-only mode.
Freshworks Inc. (FRSH) Q1 Earnings and Revenues Top Estimates
Freshworks Inc. (FRSH) came out with quarterly earnings of $0.18 per share, beating the Zacks Consensus Estimate of $0.13 per share. This compares to earnings of $0.10 per share a year ago.
Freshworks: Disrupting The SaaS Universe With Simplicity
Freshworks trades at a steep discount relative to its peers despite its growing revenues, free cash flow, and strong balance sheet. The features of Freshworks' offerings are helping it gain market share, a potential boon for ARR and NRR in 2025 considering its ability to upsell and cross-sell its solutions. An optimistic mid-market outlook in 2025 could see Freshworks exceed management's guidance for revenue and free cash flow.
