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Jun 30, 2022
Freshworks Q2 2022 Earnings Report
Freshworks' Q2 2022 financial results announced, demonstrating revenue growth and continued customer acquisition.
Key Takeaways
Freshworks reported a solid second quarter with revenue of $121.4 million, representing a 37% year-over-year growth (40% adjusting for constant currency). The company's net dollar retention rate was 111%, and it added several new customers.
Total revenue was $121.4 million, up 37% year-over-year (40% adjusting for constant currency).
GAAP loss from operations was $(67.4) million, compared to $(6.4) million in the second quarter of 2021.
Non-GAAP loss from operations was $(15.8) million, compared to $(5.4) million in the second quarter of 2021.
Net dollar retention rate was 111%.
Freshworks
Freshworks
Forward Guidance
Freshworks provided estimates for the third quarter and full year 2022, based on current market conditions and expectations. Revenue growth rates are adjusted for constant currency to provide better visibility into the underlying business trends.
Positive Outlook
- Third quarter revenue is expected to be between $124.5 million and $126.5 million, representing a year-over-year growth of 29% - 31%.
- Third quarter revenue growth adjusting for constant currency is expected to be 31% - 33%.
- Full year 2022 revenue is expected to be between $493.0 million and $497.0 million, representing a year-over-year growth of 33% - 34%.
- Full year 2022 revenue growth adjusting for constant currency is expected to be 35% - 36%.
- Third quarter non-GAAP loss per share is expected to be between $(0.07) and $(0.05).
Challenges Ahead
- Third quarter non-GAAP loss from operations is expected to be between ($14.5) million and ($12.5) million.
- Full year 2022 non-GAAP loss from operations is expected to be between ($42.5) million and ($38.5) million.
- Full year 2022 non-GAAP net loss per share is expected to be between $(0.18) and $(0.16).
- Estimates are subject to various important cautionary factors.
- Estimates have not been reconciled for non-GAAP loss from operations to GAAP loss from operations or non-GAAP net loss per share to GAAP net loss per share due to uncertainty.