AFreshworks Inc(Nasdaq: FRSH), global software company with people-centered AI, announced last Tuesday (11) the financial results for the fourth quarter and the full year ended December 31, 2024
"Freshworks once again exceeded its previous estimates in the fourth quarter across all key metrics", recording a solid quarter with revenue growth of 22% compared to the previous year, totaling US$ 194,6 million, operating cash flow margin of 21% and adjusted free cash flow margin of 21%, said Dennis Woodside, CEO and President of Freshworks. Companies are abandoning traditional suppliers and migrating to Freshworks in search of modern and uncomplicated solutions for customer and employee experience.”
Summary of Financial Results for the Fourth Quarter of 2024
- RecipeThe total revenue was US$194,6 million, a growth of 22% compared to US$160,1 million in the fourth quarter of 2023, and 21% adjusted for constant currency
- (GAAP Loss) from OperationsThe GAAP loss from operations was US$ (23,8 million, compared to US$ (40,0 million in the fourth quarter of 2023
- Non-GAAP Operating IncomeThe non-GAAP operating profit was US$ 40,3 million, compared to US$11,5 million in the fourth quarter of 2023
- GAAP Loss per ShareThe basic and diluted GAAP loss per share was US$ (0,07), based on 303,6 million shares on a weighted average, compared to US$ (0,in the fourth quarter of 2023
- Non-GAAP Earnings Per ShareThe diluted non-GAAP earnings per share was $0,14, based on 306,1 million shares on a weighted average, compared to US$0,08 in the fourth quarter of 2023
- Operating Cash FlowThe operating cash flow was US$41,4 million, compared to US$30,9 million in the fourth quarter of 2023
- Adjusted Free Cash FlowThe adjusted free cash flow was US$41,7 мільйонів, compared to US$28,6 million in the fourth quarter of 2023
- Cash and EquivalentsBox, cash and negotiable securities totaled US$1,7 billion on December 31, 2024
Summary of the Full Year 2024 Financial Results
- RecipeThe total revenue was US$720,4 million, representing a growth of 21% compared to US$596,4 million of 2023
- (GAAP Loss) from OperationsThe GAAP loss from operations was US$ (138,6 million, compared to US$ (170,2 million in 2023
- Non-GAAP Operating IncomeThe non-GAAP operating profit was $99,1 million, compared to US$44,5 million in 2023
- GAAP Loss per ShareThe basic and diluted GAAP loss per share was US$ (0,32), compared to US$ (0,47) in 2023
- Non-GAAP Earnings Per ShareThe diluted non-GAAP earnings per share was $0,43, compared to US$0,26 in 2023
- Operating Cash FlowThe operating cash flow was US$160,6 million, compared to US$86,2 million in 2023
- Adjusted Free Cash FlowThe adjusted free cash flow was US$153,3 million, compared to US$77,8 million in 2023
Key Metrics and Recent Highlights
- The number of customers contributing more than $5.000 in ARR was 22.558, an increase of 11% compared to the previous year
- The revenue retention rate was 103% (105% adjusted for constant currency)
- New clients include New Balance, Rawlings Sporting Goods, Sophos, Onfido and Mesa Airlines
- Appointment of Srinivasan Raghavan as Director of Products and Venkitesh Subramanian as Senior Vice President of Product Management for Customer Experience
- Announcement of strategic agreement with Unisys
Financial Perspectives for 2025
The company expects revenue between US$190,0 – US$193,0 million in the first quarter of 2025 and between $809,0 – US$821,0 million in the full year, with growth between 12% and 14%
