Freshworks reports 3Q results; up 46% YOY

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.

Results

Revenue: $96.6 million vs $90.8 million
EPS: -$0.04 per share vs -$0.10 per share

Key Highlights
  • 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.
CEO Statement

“Our strong third quarter results reflect the continued adoption of our modern and easy-to-use products by companies of all sizes,”
“We grew 46% year over year, and saw healthy expansion activity from our customer base.”

Girish Mathrubootham, CEO and founder of Freshworks
Q4 Guidance

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

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