Freshworks Q1 2024 Earnings Report
Key Takeaways
Freshworks reported a strong first quarter with a 20% increase in revenue year-over-year, reaching $165.1 million. The company also demonstrated improved profitability and generated a strong free cash flow of $38.7 million.
First quarter revenue grew 20% year-over-year, 19% adjusting for constant currency.
GAAP loss from operations was $(32.2) million, compared to $(48.1) million in the first quarter of 2023.
Non-GAAP income from operations was $21.8 million, compared to $3.9 million in the first quarter of 2023.
Free cash flow was $38.7 million, compared to $9.1 million in the first quarter of 2023.
Freshworks
Freshworks
Forward Guidance
Freshworks provided estimates for the second quarter and full year 2024 based on current market conditions and expectations. Revenue and non-GAAP income from operations are based on exchange rates as of April 26, 2024 for currencies other than USD.
Positive Outlook
- Second Quarter 2024 Revenue: $168.0 - $170.0 million
- Second Quarter 2024 Year-over-year growth: 16% - 17%
- Second Quarter 2024 Non-GAAP income from operations: $6.5 - $8.5 million
- Second Quarter 2024 Non-GAAP net income per share: $0.05 - $0.06
- Full Year 2024 Non-GAAP net income per share: $0.32 - $0.35
Challenges Ahead
- Full Year 2024 Revenue: $695.0 - $705.0 million
- Full Year 2024 Year-over-year growth: 17% - 18%
- Full Year 2024 Non-GAAP income from operations: $58.0 - $64.0 million
- Estimates are subject to various important cautionary factors.
- Estimates for non-GAAP financial measures to GAAP have not been reconciled due to the uncertainty and potential variability of expenses that may be incurred in the future.