Freshworks (NASDAQ: FRSH) announced its 3Q results on Tuesday. Total revenue grew 46% year-over-year. Net dollar retention rate of 117%, up 8% year-over-year.
Revenue: $96.6 million vs $90.8 million
EPS: -$0.04 per share vs -$0.10 per share
- Number of customers contributing more than $5,000 in ARR was 14,079, an increase of 31% year-over-year.
- Net dollar retention rate was 117%, compared to 118% in the second quarter of 2021 and 109% in the third quarter of 2020.
- Completed an Initial Public Offering and listed as FRSH on NASDAQ.
- Welcomed new customers to the Freshworks community including: Double Diamond Resorts, ForgeRock, Hunter College NY, Lucidworks, Phillips, Scotch and Soda, Smashburger, Toyota Connected India, Watsons, and more.
- Included in the 2021 Gartner Magic Quadrant for IT Service Management (ITSM) Tools as a “Challenger”.
- Promoted Pam Sergeeff as its Chief Legal Officer & General Counsel.
- Appointed former CEO of NetSuite, Zach Nelson, and SVP and Chief Product Officer at Cloudflare, Jennifer Taylor, to the board of directors.
- Announced Refresh, the Freshworks annual user conference, to be held November 11, with customer speakers from African Bank, Carrefour, Clopay, Dwyer, PowerSchool, Shopify, and more.
- Realized gain from an equity investment in a private company resulting in cash proceeds of $24 million.
“Our strong third quarter results reflect the continued adoption of our modern and easy-to-use products by companies of all sizes,”Girish Mathrubootham, CEO and founder of Freshworks
“We grew 46% year over year, and saw healthy expansion activity from our customer base.”
For the fourth quarter and full year 2021, Freshworks currently expects the following results:
Fourth Quarter 2021
Total revenue of $99.0 million – $101.0 million
Non-GAAP loss from operations of $13.5 million – $11.5 million
Non-GAAP net loss per share(1) of $0.07 – $0.05
Full Year 2021
Total revenue of $364.5 million – $366.5 million
Non-GAAP loss from operations of $21.0 million – $19.0 million
Non-GAAP net loss per share(1) of $0.22 – $0.20