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Sep 30, 2022
Freshworks Q3 2022 Earnings Report
Freshworks' Q3 2022 earnings showcased strong revenue growth and improved operating efficiency.
Key Takeaways
Freshworks reported a strong third quarter with revenue reaching $128.8 million, a 33% increase year-over-year (37% adjusting for constant currency). The company demonstrated improved operating efficiency with a reduced GAAP loss from operations. Key metrics included a 19% increase in customers contributing more than $5,000 in ARR and a net dollar retention rate of 107%.
Total revenue was $128.8 million, up 33% year-over-year (37% adjusting for constant currency).
GAAP loss from operations improved to $(58.3) million, compared to $(140.3) million in Q3 2021.
Customers contributing more than $5,000 in ARR increased by 19% year-over-year.
Net dollar retention rate was 107%.
Freshworks
Freshworks
Forward Guidance
Freshworks provided estimates for the fourth quarter and full year 2022 based on current market conditions and expectations, with revenue growth rates adjusted for constant currency.
Positive Outlook
- Fourth Quarter 2022 Revenue: $129.2 - $131.2 million (27%-28% growth adjusting for constant currency)
- Full Year 2022 Revenue: $494.0 - $496.0 million (36%-37% growth adjusting for constant currency)
- Fourth Quarter 2022 Non-GAAP loss from operations: ($10.5) - ($8.5) million
- Full Year 2022 Non-GAAP loss from operations: ($30.0) - ($28.0) million
- Fourth Quarter 2022 Non-GAAP net loss per share: ($0.05) - ($0.03)
Challenges Ahead
- Full Year 2022 Non-GAAP net loss per share: ($0.13) - ($0.11)
- Estimates are subject to cautionary factors referenced in the “Forward-Looking Statements” section.
- Revenue and non-GAAP loss from operations are based on exchange rates as of October 28, 2022.
- 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 of future expenses.
- Actual results may differ materially from these forward-looking statements.