Yahoo Finance Freshworks Earnings: What To Look For From FRSH
Business software provider Freshworks (NASDAQ: FRSH) will be reporting earnings tomorrow afternoon. Here's what you need to know.
Freshworks met analysts' revenue expectations last quarter, reporting revenues of $165.1 million, up 19.9% year on year. It was a weak quarter for the company, with underwhelming revenue guidance for the next quarter and decelerating growth in large customers. It added 288 enterprise customers paying more than $5,000 annually to reach a total of 20,549.
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 16.5% year on year to $169 million, slowing from the 19.5% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.06 per share.
The majority of analysts covering the company have reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Freshworks has a history of exceeding Wall Street's expectations, beating revenue estimates every single time over the past two years by 2.1% on average.
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 4.1%. The stock traded up 4.3% on the results.
Read our full analysis of VeriSign's earnings results here.
There has been positive sentiment among investors in the sales and marketing software segment, with share prices up 2.9% on average over the last month. Freshworks is up 5.2% during the same time and is heading into earnings with an average analyst price target of $18.3 (compared to the current share price of $13.48).
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