Sep 30, 2021

Freshworks Q3 2021 Earnings Report

Freshworks reported strong results driven by continued adoption of its products and healthy expansion activity.

Key Takeaways

Freshworks reported a 46% year-over-year increase in total revenue, reaching $96.6 million for the third quarter of 2021. The company's net dollar retention rate was 117%, and they completed their initial public offering.

Total revenue grew 46% year-over-year.

Net dollar retention rate was 117%, up 8 percentage points year-over-year.

Completed an Initial Public Offering and listed as FRSH on NASDAQ.

Welcomed new customers including Double Diamond Resorts, ForgeRock, Hunter College NY, and more.

Total Revenue
$96.6M
Previous year: $177M
-45.3%
EPS
-$0.04
Previous year: -$5.56
-99.3%
Customers Paying >$5k ARR
14.08K
0
Net Dollar Retention Rate
117%
Previous year: 109%
+7.3%
Gross Profit
$74.4M
Previous year: $53M
+40.3%
Cash and Equivalents
$1.18B
Previous year: $56M
+2008.9%
Free Cash Flow
-$4.2M
Previous year: $15.4M
-127.2%
Total Assets
$1.49B

Freshworks

Freshworks

Forward Guidance

Freshworks provided estimates for the fourth quarter and full year 2021 based on current market conditions and expectations.

Positive Outlook

  • Fourth Quarter 2021 Total revenue of $99.0 million - $101.0 million
  • Fourth Quarter 2021 Non-GAAP loss from operations of $13.5 million - $11.5 million
  • Fourth Quarter 2021 Non-GAAP net loss per share of $0.07 - $0.05
  • Full Year 2021 Total revenue of $364.5 million - $366.5 million
  • Full Year 2021 Non-GAAP loss from operations of $21.0 million - $19.0 million

Challenges Ahead

  • Fourth Quarter 2021 Non-GAAP loss from operations of $13.5 million - $11.5 million
  • Fourth Quarter 2021 Non-GAAP net loss per share of $0.07 - $0.05
  • Full Year 2021 Non-GAAP loss from operations of $21.0 million - $19.0 million
  • Full Year 2021 Non-GAAP net loss per share of $0.22 - $0.20
  • Estimates are subject to risks and uncertainties associated with the ongoing COVID-19 pandemic.