FreshworksNASDAQ: FRSH

Freshwork (FRSH) has an impressive earnings surprise history and currently possesses the right combination of the two key ingredients for a likely beat in its next quarterly report.

SAN MATEO, Calif., Oct. 14, 2024 (GLOBE NEWSWIRE) -- Freshworks Inc. (NASDAQ: FRSH) will announce its financial results for the third quarter ended September 30, 2024 following the close of market on Wednesday, November 6, 2024. Freshworks will host a live audio webcast beginning at 2:00 p.m Pacific Time / 5:00 p.m. Eastern Time that same day to discuss the company's financial results and business highlights.

I recommend a buy rating for Freshworks. FRSH's revenue growth could sustain at 20%, driven by increasing traction in growth initiatives like Freddy and Fresh Service Solutions. Risks include potential worsening of the macroclimate, which could impact FRSH's growth narrative and valuation multiples.

Shares of Freshworks continued a sharp YTD selloff of ~50% despite posting strong Q2 results. The company enjoyed a strong "beat and raise" quarter and lifted its full-year growth outlook by 150bps, while constant-currency revenue growth also accelerated slightly in Q2. Freshworks is also noting strong attach rates of its AI assistant, Freddy Copilot.

Freshworks Inc. (NASDAQ:FRSH ) Q2 2024 Results Earnings Conference Call July 31, 2024 5:00 PM ET Company Participants Joon Huh - Vice President, Finance, Investor Relations and Treasury Dennis Woodside - Chief Executive Officer and President Tyler Sloat - Chief Financial Officer Conference Call Participants Brent Bracelin - Piper Sandler Pat Walravens - Citizens JMP DJ Haynes - Canaccord Genuity Scott Berg - Needham & Company Ryan MacWilliams - Barclays Capital Elizabeth Porter - Morgan Stanley Noah Herman - J.P. Morgan Luv Sodha - Jefferies Rob Oliver - Robert W.

Freshworks Inc. (FRSH) came out with quarterly earnings of $0.08 per share, beating the Zacks Consensus Estimate of $0.06 per share. This compares to earnings of $0.07 per share a year ago.

Software firm Freshworks forecast third-quarter revenue above Wall Street estimates on Tuesday, expecting a surge in demand for its AI-powered services as customers ramp up digitization.

Freshworks stock has declined sharply year to date, creating a buying opportunity. Its revenue growth has remained consistently around 20% y/y over the past few quarters. The company's slight slippage in net revenue retention rates, owing to SMB weakness, has been echoed throughout the software sector.

More than half of knowledge workers are actively using AI at work—and driving efficiencies of nearly 24 business days of work per year More than half of knowledge workers are actively using AI at work—and driving efficiencies of nearly 24 business days of work per year