Dec 31, 2021

Freshworks Q4 2021 Earnings Report

Freshworks surpassed $100 million in quarterly revenue and achieved 44% year-over-year growth

Key Takeaways

Freshworks Inc. announced financial results for the fourth quarter and full year ended December 31, 2021. Total revenue was $105.5 million, representing growth of 44% compared to the fourth quarter of 2020.

Total revenue was $105.5 million, representing growth of 44% compared to the fourth quarter of 2020.

GAAP (loss) from operations was $(56.4) million, compared to $(3.4) million in the fourth quarter of 2020.

Non-GAAP (loss) from operations was $(10.7) million, compared to $(2.3) million in the fourth quarter of 2020.

Number of customers contributing more than $5,000 in ARR was 14,814, an increase of 28% year-over-year.

Total Revenue
$105M
Previous year: $73M
+44.5%
EPS
-$0.06
Previous year: $3.46
-101.7%
Customers Paying >$5k ARR
14.81K
Previous year: 11.57K
+28.0%
Net Dollar Retention Rate
114%
Previous year: 111%
+2.7%
Gross Profit
$85.1M
Previous year: $57.5M
+47.9%
Cash and Equivalents
$748M
Previous year: $95.4M
+684.1%
Free Cash Flow
$2.8M
Previous year: $12.7M
-78.0%
Total Assets
$1.48B
Previous year: $367M
+303.6%

Freshworks

Freshworks

Forward Guidance

Freshworks is providing estimates for the first quarter and full year 2022 based on current market conditions and expectations.

Positive Outlook

  • First Quarter 2022 Total revenue of $107.0 million - $109.0 million
  • First Quarter 2022 Non-GAAP loss from operations of $(12.5) million - $(10.5) million
  • First Quarter 2022 Non-GAAP net loss per share of $(0.07) - $(0.05)
  • Full Year 2022 Total revenue of $486.5 million - $495.0 million
  • Full Year 2022 Non-GAAP loss from operations of $(56.5) million - $(48.5) million

Challenges Ahead

  • Non-GAAP net loss per share of $(0.23) - $(0.19)
  • Estimates are subject to various important cautionary factors referenced in the section entitled “Forward-Looking Statements”
  • Risks and uncertainties associated with the ongoing COVID-19 pandemic.
  • Freshworks has not reconciled its estimates for non-GAAP loss from operations to GAAP loss from operations or non-GAAP net loss per share to GAAP net loss per share
  • A reconciliation is not available without unreasonable effort.