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.
Freshwork (FRSH) has an impressive earnings surprise history and currently possesses the right combination of the two key ingredients for a likely beat in its next quarterly report.
I recommend a buy rating for Freshworks. FRSH's revenue growth could sustain at 20%, driven by increasing traction in growth initiatives like Freddy and Fresh Service Solutions. Risks include potential worsening of the macroclimate, which could impact FRSH's growth narrative and valuation multiples.
Shares of Freshworks continued a sharp YTD selloff of ~50% despite posting strong Q2 results. The company enjoyed a strong "beat and raise" quarter and lifted its full-year growth outlook by 150bps, while constant-currency revenue growth also accelerated slightly in Q2. Freshworks is also noting strong attach rates of its AI assistant, Freddy Copilot.
Freshworks Inc. (NASDAQ:FRSH ) Q2 2024 Results Earnings Conference Call July 31, 2024 5:00 PM ET Company Participants Joon Huh - Vice President, Finance, Investor Relations and Treasury Dennis Woodside - Chief Executive Officer and President Tyler Sloat - Chief Financial Officer Conference Call Participants Brent Bracelin - Piper Sandler Pat Walravens - Citizens JMP DJ Haynes - Canaccord Genuity Scott Berg - Needham & Company Ryan MacWilliams - Barclays Capital Elizabeth Porter - Morgan Stanley Noah Herman - J.P. Morgan Luv Sodha - Jefferies Rob Oliver - Robert W.
Freshworks Inc. (FRSH) came out with quarterly earnings of $0.08 per share, beating the Zacks Consensus Estimate of $0.06 per share. This compares to earnings of $0.07 per share a year ago.