Freshworks Inc. (NASDAQ: FRSH), a leading software company
empowering businesses to delight their customers and employees,
today announced financial results for its first quarter ended
March 31, 2024.
“Freshworks delivered 20% revenue growth with
improving profitability and a strong free cash flow margin in Q1,”
said Girish Mathrubootham, CEO and Founder of Freshworks. “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.”
First Quarter
2024 Financial Summary
Results
- Revenue: Total
revenue was $165.1 million, representing growth of 20% compared to
the first quarter of 2023, and 19% adjusting for constant
currency.
- GAAP (Loss) from
Operations: GAAP (loss) from operations was $(32.2)
million, compared to $(48.1) million in the first quarter of
2023.
- Non-GAAP Income from
Operations: Non-GAAP income from operations was $21.8
million, compared to $3.9 million in the first quarter of
2023.
- GAAP Net (Loss) Per
Share: GAAP basic and diluted net (loss) per share was
$(0.08) based on 297.9 million weighted-average shares
outstanding, compared to $(0.15) based on 290.1 million
weighted-average shares outstanding in the first quarter of
2023.
- Non-GAAP Net Income Per
Share: Non-GAAP diluted net income per share was $0.10
based on 304.5 million weighted-average shares outstanding,
compared to $0.03 based on 294.5 million weighted-average shares
outstanding in the first quarter of 2023.
- Net Cash Provided by Operating
Activities: Net cash provided by operating activities was
$40.6 million, compared to $11.5 million in the first quarter of
2023.
- Free Cash Flow: Free
cash flow was $38.7 million, compared to $9.1 million in the first
quarter of 2023.
- Cash, Cash Equivalents and
Marketable Securities: Cash, cash equivalents, and
marketable securities were $1.21 billion as of March 31,
2024.
A description of non-GAAP financial measures is
contained in the section titled “Explanation of Non-GAAP Financial
Measures” below and a reconciliation of GAAP to non-GAAP financial
measures is contained in the tables below.
Freshworks also announced today that Founder and
Chief Executive Officer Girish Mathrubootham will transition to the
role of Executive Chairman later today and Dennis Woodside will
become Chief Executive Officer and President at that time. Full
press release can be found at
freshworks.com/newsroom/press-releases.
First Quarter Key Metrics
and Recent Business Highlights
- Number of customers contributing more
than $5,000 in ARR was 20,549, an increase of 11% year-over-year
and 12% adjusting for constant currency.
- Net dollar retention rate was 106%
(106% adjusting for constant currency), compared to 108% in the
fourth quarter of 2023 and 107% in the first quarter of 2023.
Constant currency net dollar retention rate was 107% in the fourth
quarter of 2023 and 108% in the first quarter of 2023.
- Welcomed more customers to the
Freshworks community including Dark Matter Technologies, British
Transport Police, YoungCapital, Coeur Mining, Kramp and many
more.
- Announced the entry into a definitive
agreement to acquire Device42, an IT asset management company with
more than 800 customers in over 60 countries, further strengthening
Freshworks’ IT solutions for mid-market and enterprise
companies.
Financial Outlook
We are providing estimates for the second quarter
and full year 2024 based on current market conditions and
expectations. The revenue growth rates are adjusted for constant
currency to provide better visibility into the underlying business
trends. We emphasize that these estimates are subject to various
important cautionary factors referenced in the section entitled
“Forward-Looking Statements” below.
For the second quarter and full year 2024, we
currently expect the following results:
($ in millions, except per share data) |
Second Quarter 2024 |
Full Year 2024 |
Revenue(1) |
$168.0 - $170.0 |
$695.0 - $705.0 |
Year-over-year growth |
16% - 17% |
17% - 18% |
|
|
|
Non-GAAP income from operations(1) |
$6.5 - $8.5 |
$58.0 - $64.0 |
|
|
|
Non-GAAP net income per share(2) |
$0.05 - $0.06 |
$0.32 - $0.35 |
(1) Revenue and non-GAAP income from operations are
based on exchange rates as of April 26, 2024 for currencies other
than USD.(2) Non-GAAP net income per share was estimated assuming
305.6 million and 307.6 million weighted-average shares outstanding
for the second quarter and full year 2024, respectively.
These statements are forward-looking and actual
results may differ materially. Refer to the “Forward-Looking
Statements” safe harbor section below for information on the
factors that could cause our actual results to differ materially
from these forward-looking statements.
We have not reconciled our estimates for non-GAAP
financial measures to GAAP due to the uncertainty and potential
variability of expenses that may be incurred in the future. As a
result, a reconciliation is not available without unreasonable
effort and we are unable to address the probable significance of
the unavailable information. We have provided a reconciliation of
other GAAP to non-GAAP financial measures in the financial
statement tables for our first quarter of 2024 and 2023 non-GAAP
results included in this press release.
Webcast and Conference Call
Information
We will host a conference call for investors on
May 1, 2024 at 2:00 p.m. Pacific Time / 5:00 p.m. Eastern Time
to discuss the company’s financial results and business highlights.
Investors are invited to listen to a live audio webcast of the
conference call by visiting the investor relations website at
ir.freshworks.com. A replay of the audio webcast will be available
shortly after the call on the Freshworks Investor Relations website
and will be available for twelve months thereafter.
Explanation of Non-GAAP Financial
Measures
In addition to financial measures prepared in
accordance with U.S. generally accepted accounting principles
(GAAP), this press release and the accompanying tables contain
non-GAAP financial measures, including revenue adjusted for
constant currency, non-GAAP gross profit, non-GAAP gross margin,
non-GAAP sales and marketing expense, non-GAAP research and
development expense, non-GAAP general and administrative expense,
non-GAAP income from operations, non-GAAP operating margin,
non-GAAP net income per share, non-GAAP net income attributable to
common stockholders, and free cash flow. This press release and the
accompanying tables also contain certain non-GAAP metrics,
including annual recurring revenue, net dollar retention rates,
revenue growth rates, and related presentation thereof adjusted for
constant currency.
We adjust revenue and related growth rates for
constant currency to provide a framework for assessing business
performance excluding the effect of foreign currency rate
fluctuations. To present this information, current period results
for currencies other than USD are converted into USD at the average
exchange rates in effect during the comparison period (for Q1 2023,
the average exchange rates in effect for our major currencies were
1 USD to 1.07 EUR and 1 USD to 1.21 GBP), rather than the actual
average exchange rates in effect during the current period (for Q1
2024, the average exchange rates in effect for our major currencies
were 1 USD to 1.09 EUR and 1 USD to 1.27 GBP).
We use these non-GAAP measures in conjunction with
GAAP measures as part of our overall assessment of our performance,
including the preparation of our annual operating budget and
quarterly forecasts, to evaluate the effectiveness of our business
strategies and to communicate with our board of directors
concerning our financial performance. We believe these non-GAAP
measures provide investors consistency and comparability with our
past financial performance and facilitate period-to-period
comparisons of our operating results. We believe these non-GAAP
measures are useful in evaluating our operating performance
compared to that of other companies in our industry, as they
generally eliminate the effects of certain items that may vary for
different companies for reasons unrelated to overall operating
performance.
Investors, however, are cautioned that there are
material limitations associated with the use of non-GAAP financial
measures as an analytical tool. The non-GAAP measures we use may be
different from non-GAAP financial measures used by other companies,
limiting their usefulness for comparison purposes. We compensate
for these limitations by providing specific information regarding
the GAAP items excluded from these non-GAAP financial measures.
We exclude the following items from one or more of
our non-GAAP financial measures, including the related income tax
effect of these adjustments:
- Stock-based compensation expense. We
exclude stock-based compensation, which is a non-cash expense, from
certain of our non-GAAP financial measures because we believe that
excluding this expense provides meaningful supplemental information
regarding operational performance. In particular, stock-based
compensation expense is not comparable across companies given the
variety of valuation methodologies and assumptions.
- Employer payroll taxes on employee
stock transactions. We exclude the amount of employer payroll taxes
on equity awards from certain of our non-GAAP financial measures
because they are dependent on our stock price at the time of
vesting or exercise and other factors that are beyond our control
and do not believe these expenses have a direct correlation to the
operation of our business.
- Amortization of acquired intangibles.
We exclude amortization of acquired intangibles, which is a
non-cash expense, from certain of our non-GAAP financial measures.
Our expenses for amortization of acquired intangibles are
inconsistent in amount and frequency because they are significantly
affected by the timing, size of acquisitions, and the allocation of
purchase price. We exclude these amortization expenses because we
do not believe these expenses have a direct correlation to the
operation of our business.
We define free cash flow as net cash provided by
(used in) operating activities, less purchases of property and
equipment and capitalized internal-use software. We believe that
free cash flow is a useful indicator of liquidity as it measures
our ability to generate cash from our core operations after
purchases of property and equipment. Free cash flow is a measure to
determine, among other things, cash available for strategic
initiatives, including further investments in our business and
potential acquisitions of businesses.
Operating Metrics
Number of Customers Contributing More Than $5,000
in ARR. We define ARR as the sum total of the revenue we would
contractually expect to recognize over the next 12 months from all
customers at a point in time, assuming no increases, reductions or
cancellations in their subscriptions. We define our total customers
contributing more than $5,000 in ARR as of a particular date as the
number of business entities or individuals, represented by a unique
domain or a unique email address, with one or more paid
subscriptions to one or more of our products that contributed more
than $5,000 in ARR.
Net Dollar Retention Rate. To calculate net dollar
retention rate as of a given date, we first determine Entering ARR,
which is ARR from the population of our customers as of 12 months
prior to the end of the reporting period. We then calculate the
Ending ARR from the same set of customers as of the end of the
reporting period. We then divide the Ending ARR by the Entering ARR
to arrive at our net dollar retention rate. Ending ARR includes
upsells, cross-sells, and renewals during the measurement period
and is net of any contraction or attrition over this period.
We also adjust the above operating metrics, growth
rates of customers contributing more than $5,000 in ARR and related
presentation thereof for constant currency to provide a framework
for assessing our business performance excluding the effects of
foreign currency rates fluctuations. To present this information,
the Ending ARR of the current period in currencies other than USD
is converted into USD at the exchange rates in effect at the end of
the comparison period (for Q1 2023, the period end exchange rates
in effect for our major currencies were 1 USD to 1.09 EUR and 1 USD
to 1.24 GBP), rather than the actual exchange rates in effect at
the end of the current period (for Q1 2024, the period end exchange
rates in effect for our major currencies were 1 USD to 1.08 EUR and
1 USD to 1.26 GBP).
Forward-Looking Statements
This release contains forward-looking statements
within the meaning of the Private Securities Litigation Reform Act
of 1995. These statements relate to, among other things, our GAAP
and non-GAAP estimates for the second quarter and full year 2024,
our financial outlook, the value of our products to customers, the
results of our focus on product innovation efforts and the
usefulness of the measures by which we evaluate our business, among
other things. These forward-looking statements are based on our
current expectations, estimates and projections about our business
and industry, including our financial outlook and macroeconomic
uncertainties, management’s beliefs and certain assumptions made by
the company, all of which are subject to change. Forward-looking
statements generally can be identified by the use of
forward-looking terminology such as, “future,” “believe,” “expect,”
“may,” “will,” “intend” “estimate,” “continue,” “anticipate,”
“could,” “would,” “projects,” “plans,” “targets” or similar
expressions or the negative of those terms or expressions. Such
statements involve risks and uncertainties, many of which involve
factors or circumstances that are beyond our control, which could
cause actual results to vary materially from those expressed in or
indicated by the forward-looking statements. Factors that may cause
actual results to differ materially include our ability to achieve
our long-term plans and key initiatives; our ability to sustain or
manage any future growth effectively; our ability to attract and
retain customers or expand sales to existing customers; delays in
product development or deployments or the success of such products;
the failure to deliver competitive service offerings and lack of
market acceptance of any offerings delivered; the impact to the
economy, our customers and our business due to global economic
conditions, including market volatility, foreign exchange rates,
and impact of inflation; the timeframes for and severity of the
impact of any weakened global economic conditions on our customers’
purchasing and renewal decisions, which may extend the length of
our sales cycles or adversely affect our industry; our history of
net losses and ability to achieve or sustain profitability, as well
as the other potential factors described under "Risk Factors"
included in our Annual Report on Form 10-K for the year ended
December 31, 2023 as such factors may be updated from time to time
in our periodic and other documents of Freshworks Inc. filed with
the Securities and Exchange Commission from time to time (available
at www.sec.gov).
We caution you not to place undue reliance on
forward-looking statements, which speak only as of the date hereof
and are based on information available to us at the time the
statements are made and/or management’s good faith belief as of
that time with respect to future events. We assume no obligation to
update any forward-looking statements in order to reflect events or
circumstances that may arise after the date of this release, except
as required by law.
About Freshworks Inc.
Freshworks Inc., (NASDAQ: FRSH) creates AI-boosted
business software anyone can use. Purpose-built for IT, customer
support, and sales and marketing teams, our products are designed
to let everyone work more efficiently and deliver more value for
immediate business impact. Headquartered in San Mateo, California,
Freshworks operates around the world to serve more than 67,000
customers, including American Express, Blue Nile, Bridgestone,
Databricks, Fila, and OfficeMax. For the freshest company news,
visit www.freshworks.com and follow us on Facebook, LinkedIn, and
X.
© 2024 Freshworks Inc. All Rights Reserved.
Freshworks and its associated logo is a trademark of Freshworks
Inc. All other company, brand and product names may be trademarks
or registered trademarks of their respective companies. Nothing in
this press release should be construed to the contrary, or as an
approval, endorsement or sponsorship by any third parties of
Freshworks Inc. or any aspect of this press release.
Investor Relations Contact:Joon
HuhIR@freshworks.com
Media Relations Contact:Denise
GockePR@freshworks.com
FRESHWORKS INC. |
CONDENSED CONSOLIDATED STATEMENTS OF
OPERATIONS |
(in thousands, except per share data) |
(unaudited) |
|
|
Three Months EndedMarch 31, |
|
|
2024 |
|
|
|
2023 |
|
Revenue |
$ |
165,143 |
|
|
$ |
137,692 |
|
Cost of revenue(1) |
|
25,890 |
|
|
|
25,236 |
|
Gross profit |
|
139,253 |
|
|
|
112,456 |
|
Operating expense: |
|
|
|
Research and development(1) |
|
34,684 |
|
|
|
32,857 |
|
Sales and marketing(1) |
|
94,642 |
|
|
|
86,810 |
|
General and administrative(1) |
|
42,094 |
|
|
|
40,896 |
|
Total operating expenses |
|
171,420 |
|
|
|
160,563 |
|
Loss from operations |
|
(32,167 |
) |
|
|
(48,107 |
) |
Interest and other income,
net |
|
12,795 |
|
|
|
9,479 |
|
Loss before income taxes |
|
(19,372 |
) |
|
|
(38,628 |
) |
Provision for income
taxes |
|
3,953 |
|
|
|
4,036 |
|
Net loss |
|
(23,325 |
) |
|
|
(42,664 |
) |
Net loss per share - basic and
diluted |
$ |
(0.08 |
) |
|
$ |
(0.15 |
) |
Weighted average shares used
in computing net loss per share - basic and diluted |
|
297,870 |
|
|
|
290,133 |
|
|
______________________(1) Includes
stock-based compensation expense as follows (in thousands):
|
Three Months EndedMarch 31, |
|
|
2024 |
|
|
|
2023 |
|
Cost of revenue |
$ |
1,521 |
|
|
$ |
1,696 |
|
Research and development |
|
8,666 |
|
|
|
8,979 |
|
Sales and marketing |
|
17,301 |
|
|
|
15,756 |
|
General and administrative |
|
24,954 |
|
|
|
24,263 |
|
Total stock-based compensation expense, net of amounts
capitalized |
$ |
52,442 |
|
|
$ |
50,694 |
|
FRESHWORKS INC. |
CONDENSED CONSOLIDATED BALANCE SHEETS |
(in thousands) |
|
|
|
March 31,2024 |
|
December 31, 2023 |
|
|
(unaudited) |
|
|
Assets |
|
|
|
|
Current assets: |
|
|
|
|
Cash and cash equivalents |
|
$ |
468,017 |
|
|
$ |
488,121 |
|
Marketable securities |
|
|
739,309 |
|
|
|
699,506 |
|
Accounts receivable, net |
|
|
84,324 |
|
|
|
97,179 |
|
Deferred contract acquisition costs |
|
|
23,297 |
|
|
|
22,908 |
|
Prepaid expenses and other current assets |
|
|
52,162 |
|
|
|
47,832 |
|
Total current assets |
|
|
1,367,109 |
|
|
|
1,355,546 |
|
Property and equipment,
net |
|
|
22,307 |
|
|
|
22,747 |
|
Operating lease right-of-use
assets |
|
|
30,500 |
|
|
|
32,749 |
|
Deferred contract acquisition
costs, noncurrent |
|
|
19,795 |
|
|
|
19,764 |
|
Goodwill |
|
|
6,181 |
|
|
|
6,181 |
|
Deferred tax assets |
|
|
9,508 |
|
|
|
10,013 |
|
Other assets |
|
|
12,046 |
|
|
|
9,772 |
|
Total assets |
|
$ |
1,467,446 |
|
|
$ |
1,456,772 |
|
Liabilities and
Stockholders' Equity |
|
|
|
|
Current liabilities: |
|
|
|
|
Accounts payable |
|
$ |
1,517 |
|
|
$ |
3,485 |
|
Accrued liabilities |
|
|
58,164 |
|
|
|
56,608 |
|
Deferred revenue |
|
|
275,907 |
|
|
|
266,399 |
|
Income tax payable |
|
|
716 |
|
|
|
722 |
|
Total current liabilities |
|
|
336,304 |
|
|
|
327,214 |
|
Operating lease liabilities,
non-current |
|
|
24,595 |
|
|
|
26,795 |
|
Other liabilities |
|
|
28,416 |
|
|
|
30,501 |
|
Total liabilities |
|
|
389,315 |
|
|
|
384,510 |
|
Stockholders' equity: |
|
|
|
|
Common stock |
|
|
3 |
|
|
|
3 |
|
Additional paid-in
capital |
|
|
4,743,236 |
|
|
|
4,713,522 |
|
Accumulated other
comprehensive loss |
|
|
(1,274 |
) |
|
|
(754 |
) |
Accumulated deficit |
|
|
(3,663,834 |
) |
|
|
(3,640,509 |
) |
Total stockholders'
equity |
|
|
1,078,131 |
|
|
|
1,072,262 |
|
Total liabilities and
stockholders' equity |
|
$ |
1,467,446 |
|
|
$ |
1,456,772 |
|
FRESHWORKS INC. |
CONDENSED CONSOLIDATED STATEMENTS OF CASH
FLOWS |
(in thousands) |
(unaudited) |
|
|
Three Months EndedMarch 31, |
|
|
2024 |
|
|
|
2023 |
|
Cash Flows from Operating Activities: |
|
|
|
Net loss |
$ |
(23,325 |
) |
|
$ |
(42,664 |
) |
Adjustments to reconcile net loss to net cash provided by (used in)
operating |
|
|
|
Depreciation and amortization |
|
2,967 |
|
|
|
3,112 |
|
Amortization of deferred contract acquisition costs |
|
6,652 |
|
|
|
5,617 |
|
Non-cash lease expense |
|
1,980 |
|
|
|
1,850 |
|
Stock-based compensation |
|
52,442 |
|
|
|
50,694 |
|
Discount amortization on marketable securities |
|
(4,623 |
) |
|
|
(3,520 |
) |
Deferred income taxes |
|
477 |
|
|
|
113 |
|
Other |
|
(86 |
) |
|
|
70 |
|
Changes in operating assets and liabilities: |
|
|
|
Accounts receivable |
|
12,850 |
|
|
|
(2,490 |
) |
Deferred contract acquisition costs |
|
(7,072 |
) |
|
|
(5,568 |
) |
Prepaid expenses and other assets |
|
(6,609 |
) |
|
|
(7,248 |
) |
Accounts payable |
|
(1,968 |
) |
|
|
(1,494 |
) |
Accrued and other liabilities |
|
245 |
|
|
|
(392 |
) |
Deferred revenue |
|
9,508 |
|
|
|
14,924 |
|
Operating lease liabilities |
|
(2,819 |
) |
|
|
(1,500 |
) |
Net cash provided by operating activities |
|
40,619 |
|
|
|
11,504 |
|
Cash Flows from Investing Activities: |
|
|
|
Purchases of property and equipment |
|
(739 |
) |
|
|
(383 |
) |
Proceeds from sale of property and equipment |
|
41 |
|
|
|
24 |
|
Capitalized internal-use software |
|
(1,207 |
) |
|
|
(2,025 |
) |
Purchases of marketable securities |
|
(218,881 |
) |
|
|
(217,754 |
) |
Maturities and redemptions of marketable securities |
|
183,015 |
|
|
|
261,474 |
|
Net cash provided by (used in) investing activities |
|
(37,771 |
) |
|
|
41,336 |
|
Cash Flows from Financing Activities: |
|
|
|
Proceeds from exercise of stock options |
|
10 |
|
|
|
6 |
|
Payment of withholding taxes on net share settlement of equity
awards |
|
(22,964 |
) |
|
|
(12,434 |
) |
Net cash used in financing activities |
|
(22,954 |
) |
|
|
(12,428 |
) |
Net increase (decrease) in cash, cash equivalents and restricted
cash |
|
(20,106 |
) |
|
|
40,412 |
|
Cash, cash equivalents and restricted cash, beginning of
period |
|
488,216 |
|
|
|
304,158 |
|
Cash, cash equivalents and restricted cash, end of period |
$ |
468,110 |
|
|
$ |
344,570 |
|
FRESHWORKS INC. |
RECONCILIATION OF SELECTED GAAP MEASURES TO NON-GAAP
MEASURES |
(in thousands, except percentages and per share
data) |
(unaudited) |
|
|
|
Three Months EndedMarch 31, |
|
|
|
|
|
2024 |
|
|
|
2023 |
|
|
Growth Rates |
Revenue |
|
|
|
|
|
|
GAAP revenue |
|
$ |
165,143 |
|
|
$ |
137,692 |
|
|
20% |
Effects of foreign currency rate fluctuations |
|
|
(640 |
) |
|
|
|
|
Revenue adjusted for constant currency |
|
$ |
164,503 |
|
|
$ |
137,692 |
|
|
19% |
FRESHWORKS INC. |
RECONCILIATION OF SELECTED GAAP MEASURES TO NON-GAAP
MEASURES |
(in thousands, except percentages and per share
data) |
(unaudited) |
|
|
|
Three Months EndedMarch 31, |
|
|
|
2024 |
|
|
|
2023 |
|
Reconciliation of gross profit and gross
margin: |
|
|
|
|
GAAP gross profit |
|
$ |
139,253 |
|
|
$ |
112,456 |
|
Non-GAAP adjustments: |
|
|
|
|
Stock-based compensation expense |
|
|
1,521 |
|
|
|
1,696 |
|
Employer payroll taxes on employee stock transactions |
|
|
64 |
|
|
|
43 |
|
Amortization of acquired intangibles |
|
|
— |
|
|
|
158 |
|
Non-GAAP gross profit |
|
$ |
140,838 |
|
|
$ |
114,353 |
|
GAAP gross margin |
|
|
84.3 |
% |
|
|
81.7 |
% |
Non-GAAP gross margin |
|
|
85.3 |
% |
|
|
83.0 |
% |
|
|
|
|
|
Reconciliation of operating expenses: |
|
|
|
|
GAAP research and development |
|
$ |
34,684 |
|
|
$ |
32,857 |
|
Non-GAAP adjustments: |
|
|
|
|
Stock-based compensation expense |
|
|
(8,666 |
) |
|
|
(8,979 |
) |
Employer payroll taxes on employee stock transactions |
|
|
(168 |
) |
|
|
(97 |
) |
Non-GAAP research and development |
|
$ |
25,850 |
|
|
$ |
23,781 |
|
GAAP research and development as percentage of revenue |
|
|
21.0 |
% |
|
|
23.9 |
% |
Non-GAAP research and development as percentage of revenue |
|
|
15.7 |
% |
|
|
17.3 |
% |
|
|
|
|
|
GAAP sales and marketing |
|
$ |
94,642 |
|
|
$ |
86,810 |
|
Non-GAAP adjustments: |
|
|
|
|
Stock-based compensation expense |
|
|
(17,301 |
) |
|
|
(15,756 |
) |
Employer payroll taxes on employee stock transactions |
|
|
(832 |
) |
|
|
(596 |
) |
Amortization of acquired intangibles |
|
|
— |
|
|
|
(99 |
) |
Non-GAAP sales and marketing |
|
$ |
76,509 |
|
|
$ |
70,359 |
|
GAAP sales and marketing as percentage of revenue |
|
|
57.3 |
% |
|
|
63.0 |
% |
Non-GAAP sales and marketing as percentage of revenue |
|
|
46.3 |
% |
|
|
51.1 |
% |
|
|
|
|
|
GAAP general and administrative |
|
$ |
42,094 |
|
|
$ |
40,896 |
|
Non-GAAP adjustments: |
|
|
|
|
Stock-based compensation expense |
|
|
(24,954 |
) |
|
|
(24,263 |
) |
Employer payroll taxes on employee stock transactions |
|
|
(417 |
) |
|
|
(305 |
) |
Non-GAAP general and administrative |
|
$ |
16,723 |
|
|
$ |
16,328 |
|
|
|
|
|
|
GAAP general and administrative as percentage of revenue |
|
|
25.5 |
% |
|
|
29.7 |
% |
Non-GAAP general and administrative as percentage of revenue |
|
|
10.1 |
% |
|
|
11.9 |
% |
|
|
|
|
|
Reconciliation of operating loss and operating
margin: |
|
|
|
|
GAAP loss from operations |
|
$ |
(32,167 |
) |
|
$ |
(48,107 |
) |
Non-GAAP adjustments: |
|
|
|
|
Stock-based compensation expense |
|
|
52,442 |
|
|
|
50,694 |
|
Employer payroll taxes on employee stock transactions |
|
|
1,481 |
|
|
|
1,041 |
|
Amortization of acquired intangibles |
|
|
— |
|
|
|
257 |
|
Non-GAAP income from operations |
|
$ |
21,756 |
|
|
$ |
3,885 |
|
GAAP operating margin |
|
(19.5) % |
|
(34.9) % |
Non-GAAP operating margin |
|
|
13.2 |
% |
|
|
2.8 |
% |
|
|
|
|
|
Reconciliation of net loss: |
|
|
|
|
GAAP net loss - basic and diluted |
|
$ |
(23,325 |
) |
|
$ |
(42,664 |
) |
Non-GAAP adjustments: |
|
|
|
|
Stock-based compensation expense |
|
|
52,442 |
|
|
|
50,694 |
|
Employer payroll taxes on employee stock transactions |
|
|
1,481 |
|
|
|
1,041 |
|
Amortization of acquired intangibles |
|
|
— |
|
|
|
257 |
|
Income tax adjustments |
|
|
349 |
|
|
|
653 |
|
Non-GAAP net income - basic and diluted |
|
$ |
30,947 |
|
|
$ |
9,981 |
|
|
|
|
|
|
Reconciliation of net loss per share -
diluted: |
|
|
|
|
GAAP net loss per share - diluted |
|
$ |
(0.08 |
) |
|
$ |
(0.15 |
) |
Non-GAAP adjustments: |
|
|
|
|
Stock-based compensation expense |
|
|
0.18 |
|
|
|
0.18 |
|
Employer payroll taxes on employee stock transactions |
|
|
— |
|
|
|
— |
|
Income tax adjustments |
|
|
— |
|
|
|
— |
|
Non-GAAP net income per share - diluted |
|
$ |
0.10 |
|
|
$ |
0.03 |
|
Weighted-average shares used in computing GAAP net loss per share -
diluted |
|
|
297,870 |
|
|
|
290,133 |
|
Weighted-average shares used in computing non-GAAP net income per
share - diluted (1) |
|
|
304,531 |
|
|
|
294,467 |
|
|
|
|
|
|
Computation of free cash flow: |
|
|
|
|
Net cash provided by operating activities |
|
$ |
40,619 |
|
|
$ |
11,504 |
|
Less: |
|
|
|
|
Purchases of property and equipment |
|
|
(739 |
) |
|
|
(383 |
) |
Capitalized internal-use software |
|
|
(1,207 |
) |
|
|
(2,025 |
) |
Free cash flow |
|
$ |
38,673 |
|
|
$ |
9,096 |
|
Net cash provided by (used in) investing activities |
|
$ |
(37,771 |
) |
|
$ |
41,336 |
|
Net cash used in financing activities |
|
$ |
(22,954 |
) |
|
$ |
(12,428 |
) |
(1) Diluted net income (loss) per share
attributable to common stockholders is determined by giving effect
to all potential common equivalents during the reporting period,
unless including them yields an antidilutive result. The company
considers its stock options and RSUs as potential common stock
equivalents but excluded them from the computation of GAAP diluted
net loss per share attributable to common stockholders, as their
effect was antidilutive. For the three months ended March 31,
2024 and 2023, potentially dilutive shares of 6.7 million and 4.3
million shares, respectively, were included in the weighted average
shares used in computing non-GAAP net income per share.
Grafico Azioni Freshworks (NASDAQ:FRSH)
Storico
Da Nov 2024 a Dic 2024
Grafico Azioni Freshworks (NASDAQ:FRSH)
Storico
Da Dic 2023 a Dic 2024