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Sep 30, 2023
Freshworks Q3 2023 Earnings Report
Freshworks' Q3 2023 earnings exceeded estimates, driven by product innovation and improved profitability.
Key Takeaways
Freshworks reported a solid third quarter with revenue growth of 19% year-over-year. The company demonstrated improved business efficiency with positive net cash flow from operating activities and free cash flow. They are raising full year 2023 financial outlook midpoint for non-GAAP operating profit to $40 million.
Total revenue was $153.6 million, a 19% increase compared to Q3 2022.
GAAP loss from operations was $(38.7) million, an improvement from $(58.3) million in Q3 2022.
Non-GAAP income from operations was $17.4 million, compared to a $(3.1) million loss in Q3 2022.
Free cash flow was $22.1 million, compared to $(7.2) million in Q3 2022.
Forward Guidance
Freshworks is providing estimates for the fourth quarter and full year 2023 based on current market conditions and expectations.
Positive Outlook
- Fourth Quarter 2023 Revenue: $156.7 - $159.3 million
- Fourth Quarter 2023 Year-over-year growth: 18% - 20%
- Fourth Quarter 2023 Non-GAAP income from operations: $5.5 - $8.5 million
- Fourth Quarter 2023 Non-GAAP net income per share: $0.04 - $0.06
- Full Year 2023 Revenue: $593.0 - $595.5 million
Challenges Ahead
- Full Year 2023 Year-over-year growth: 19% - 20%
- Full Year 2023 Non-GAAP income from operations: $38.5 - $41.5 million
- Full Year 2023 Non-GAAP net income per share: $0.23 - $0.25
- Estimates are subject to various important cautionary factors
Historical Earnings Impact
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Avg. Return Before/After Earnings
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