Freshworks cuts losses by 45% in Q1, revenue up 20% to $165M
Earlier, the California-headquartered company announced the appointment of Dennis Woodside as the new CEO and Girish Mathrubootham to transition to the role of Executive Chairman.
Software-as-a-service (SaaS) firm pared down losses by 45%, achieving a reduced net loss of $23.3 million for the first quarter ending March 31, 2024, compared to $42.7 million in the first quarter of 2023.
The Nasdaq-listed company witnessed a 20% increase in total revenue, climbing to $165.1 million compared to $137.6 million the previous year.
Looking ahead, Freshworks has adjusted its revenue forecast for the full year, anticipating it to range between $168 million and $170 million for the second quarter of 2024.
Total income from operations amounted to $21.8 million, up from $3.9 million in the first quarter of 2023.
Earlier, the California-headquartered company announced the appointment of Dennis Woodside as the new CEO, with Girish Mathrubootham transitioning to the role of Executive Chairman.
“Freshworks delivered 20% revenue growth with improving profitability and a strong free cash flow margin in Q1. I’m particularly proud of the progress we’ve made in AI innovation across our products and its tangible impact on our customers. We remain more focused than ever on product innovation, bringing more large customers onto our platform, and expanding adoption of products across our portfolio,” said Girish Mathrubootham in a statement.
The company’s total operating expenses in the first quarter of 2024 increased to $171.4 million compared to $160.5 million in the corresponding period last year.
Moreover, the company announced a definitive agreement to acquire Device42, an IT asset management company with over 800 customers across 60 countries, further to enhance its IT solutions for mid-market and enterprise companies.
In the first quarter of 2024, the net loss per share was $(0.08), based on 297.9 million weighted-average shares outstanding. This improved from $(0.15) per share in the first quarter of 2023, based on 290.1 million weighted-average shares outstanding.
Additionally, free cash flow surged reaching $38.7 million, up from $9.1 million in the first quarter of 2023. Freshworks closed the quarter with $1.21 billion in cash, cash equivalents, and marketable securities as of March 31, 2024.
The number of customers contributing over $5,000 in ARR reached 20,549, marking an 11% increase year-over-year and a 12% rise when adjusted for constant currency.
Some of its new onboarded customers include British Transport Police, YoungCapital, Dark Matter Technologies, Coeur Mining, and Kramp, among others.
Edited by Affirunisa Kankudti