freshworks results: Freshworks Q4 results: revenue up 20% to $160 million, loss narrows

Nasdaq-listed software provider, Freshworks on Wednesday reported total revenues of $160 million for the fourth quarter ending December 31, 2023, up 20% compared to the same period in the previous financial year.

Net loss for the fourth quarter stood at $28 million, down from $55.4 million for the same period in 2022.

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Freshworks also clocked an operating profit of $44.5 million on a full-year basis in 2023, its first since its debut in the US markets. This number excludes certain non-cash expenses such as stock-based compensation, employer payroll taxes and amortisation of acquired intangibles.

On a full-year basis, the company reported consolidated revenues of $596.4 million in 2023, up 20% from the previous fiscal.

Freshworks follows calander year.

As revenues grew, net losses for the 2023 fiscal fell by 40% to $137 million from $232 million in FY22.

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“2023 was a defining year for us. We unleashed the power of the latest generative AI across our product portfolio to deliver tangible value for our customers. The refinements to our go-to-market strategy helped us win more upmarket deals and we improved our business efficiency to generate $78M in free cash flow for the year,” said Girish Mathrubootham, chief executive officer and founder of Freshworks.The company, as part of its financial results, also said that the total count of customers contributing more than $5,000 of annual recurring revenues (ARR) increased 14% year-on-year to 20,261, in the fourth quarter.

The company has appointed Abe Smith as chief of its field operations.

The customer relationship management (CRM)-software provider also added that it expects to close the first quarter of 2024 with total revenues of $162.5-$164.5 million, signaling a 18% yearly growth.

Freshworks, which competes with larger rivals such as Salesforce and Zendesk, expects 2024 revenue between $703.5 million and $711.5 million, the midpoint of which is above analysts’ average estimate of $705.4 million.

Excluding items, Freshworks said it expects annual profit per share to be between 29 cents and 31 cents, compared with estimates of 31 cents.

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