Jun 30, 2023

Freshworks Q2 2023 Earnings Report

Freshworks' Q2 2023 financial results were announced, demonstrating revenue growth and improved efficiency.

Key Takeaways

Freshworks reported a 19% year-over-year revenue increase in Q2 2023, reaching $145.1 million. The company also improved business efficiency, generating $18.1 million in free cash flow. The full-year 2023 financial outlook was raised for non-GAAP operating profit to $28 million at the midpoint.

Total revenue was $145.1 million, a 19% increase compared to Q2 2022.

GAAP loss from operations was $(43.3) million, an improvement from $(67.4) million in Q2 2022.

Non-GAAP income from operations was $11.7 million, compared to a non-GAAP loss of $(15.8) million in Q2 2022.

Free cash flow was $18.1 million, compared to $(10.2) million in Q2 2022.

Total Revenue
$145M
Previous year: $121M
+19.5%
EPS
$0.07
Previous year: -$0.06
-216.7%
Customers paying > $5k ARR
19.11K
Previous year: 16.21K
+17.8%
Net dollar retention rate
108%
Previous year: 111%
-2.7%
Gross Profit
$120M
Previous year: $97.4M
+23.4%
Cash and Equivalents
$356M
Previous year: $590M
-39.6%
Free Cash Flow
$18.1M
Previous year: -$10.2M
-277.7%
Total Assets
$1.4B
Previous year: $1.38B
+1.6%

Freshworks

Freshworks

Forward Guidance

Freshworks provided estimates for the third quarter and full year 2023 based on current market conditions and expectations.

Positive Outlook

  • Third quarter revenue is expected to be between $149.0 million and $151.5 million.
  • Full year revenue is expected to be between $587.0 million and $595.0 million.
  • Third quarter year-over-year growth is expected to be between 16% and 18%.
  • Full year year-over-year growth is expected to be between 18% and 19%.
  • Full year non-GAAP net income per share is expected to be $0.18 - $0.22