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Mar 31, 2025
Freshworks Q1 2025 Earnings Report
Reported financial results for its first quarter ended March 31, 2025
Key Takeaways
Freshworks outperformed financial estimates in Q1 2025, with revenue growing 19% year-over-year to $196.3 million, operating cash flow margin of 30%, and adjusted free cash flow margin of 28%. The company attributed its performance to businesses choosing its uncomplicated customer and employee service solutions.
Total revenue was $196.3 million, a 19% increase compared to the first quarter of 2024.
Non-GAAP income from operations was $46.4 million, a significant increase from $21.8 million in the first quarter of 2024.
Non-GAAP diluted net income per share was $0.18, up from $0.10 in the first quarter of 2024.
Cash, cash equivalents, and marketable securities totaled $1.0 billion as of March 31, 2025.
Forward Guidance
Freshworks provided financial estimates for the second quarter and full year 2025, with expected revenue growth rates adjusted for constant currency.
Positive Outlook
- Expected Q2 2025 revenue between $197.3 million and $200.3 million.
- Expected Full Year 2025 revenue between $815.3 million and $824.3 million.
- Expected Q2 2025 non-GAAP income from operations between $27.8 million and $29.8 million.
- Expected Full Year 2025 non-GAAP income from operations between $139.5 million and $147.5 million.
- Expected Q2 2025 non-GAAP net income per share between $0.10 and $0.12.
Challenges Ahead
- Expected Full Year 2025 non-GAAP net income per share between $0.56 and $0.58.
- Estimates are subject to various important cautionary factors.
- Actual results may differ materially from forward-looking statements.
- Have not reconciled non-GAAP estimates to GAAP due to uncertainty and potential variability of future expenses.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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