Freshworks Earnings: What To Look For From FRSH

Business software provider Freshworks (NASDAQ: FRSH) will be announcing earnings results tomorrow after the bell. Here’s what you need to know.

Freshworks beat analysts’ revenue expectations by 2.7% last quarter, reporting revenues of $194.6 million, up 21.5% year on year. It was a strong quarter for the company, with an impressive beat of analysts’ billings estimates and EPS guidance for next quarter exceeding analysts’ expectations. It added 199 enterprise customers paying more than $5,000 annually to reach a total of 22,558.

Is Freshworks a buy or sell going into earnings? Read our full analysis here, it’s free.

This quarter, analysts are expecting Freshworks’s revenue to grow 16.1% year on year to $191.8 million, slowing from the 19.9% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.13 per share.

Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Freshworks has missed Wall Street’s revenue estimates twice over the last two years.

Looking at Freshworks’s peers in the sales and marketing software segment, only VeriSign has reported results so far. It met analysts’ revenue estimates, delivering year-on-year sales growth of 4.7%. The stock traded up 8% on the results.

Investors in the sales and marketing software segment have had steady hands going into earnings, with share prices up 1.2% on average over the last month. Freshworks’s stock price was unchanged during the same time and is heading into earnings with an average analyst price target of $18.94 (compared to the current share price of $14.01).

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