Freshworks Inc. (FRSH) Bundle
An Overview of Freshworks Inc. (FRSH)
An Overview of Freshworks Inc. (FRSH)
Freshworks Inc. (NASDAQ: FRSH) was founded in 2010 and is headquartered in San Mateo, California. The company provides cloud-based customer engagement software designed to streamline operations for businesses of all sizes. Freshworks offers a suite of products that includes Freshdesk, Freshservice, Freshsales, and Freshmarketer, among others, catering to customer support, IT service management, sales automation, and marketing needs. As of 2024, Freshworks reported total sales of approximately $525.8 million for the nine months ended September 30, 2024, representing a year-over-year growth of 21% compared to $436.3 million in the same period of 2023.
Company's Financial Performance in the Latest Financial Reports
For the three months ended September 30, 2024, Freshworks achieved revenue of $186.6 million, a 22% increase from $153.6 million in the same quarter of 2023. The primary driver of this growth was the increase in subscription services, which accounted for $184.4 million, up from $150.0 million year-over-year.
| Financial Metrics | Q3 2024 | Q3 2023 | Change (%) |
|---|---|---|---|
| Total Revenue | $186.6 million | $153.6 million | 22% |
| Subscription Revenue | $184.4 million | $150.0 million | 23% |
| Net Loss | $(29.96) million | $(31.03) million | 4% |
| Operating Expenses | $195.6 million | $166.0 million | 18% |
In the nine months ended September 30, 2024, Freshworks reported total revenue of $525.8 million, a significant increase of 21% from $436.3 million in the same period of 2023. The company’s gross margin improved to 84%, compared to 82% in the prior year, largely due to operational efficiencies and economies of scale.
Introduction to Company as One of the Leading Companies in the Industry
Freshworks Inc. has established itself as a leading player in the customer engagement software market, recognized for its innovative cloud-based solutions that cater to diverse business needs. The company serves over 52,000 customers globally, with a strong presence in various sectors including technology, retail, and healthcare. With a net dollar retention rate of 107% as of September 30, 2024, Freshworks demonstrates robust customer loyalty and expansion within its existing customer base. The acquisition of Device42 in June 2024 further bolstered its market position, allowing Freshworks to enhance its IT asset management offerings.
Mission Statement of Freshworks Inc. (FRSH)
Mission Statement of Freshworks Inc. (FRSH)
Freshworks Inc. aims to deliver innovative software solutions that enhance customer engagement and operational efficiency for businesses of all sizes. The company's mission is to empower teams with the tools they need to provide exceptional customer experiences while simplifying complex business processes.
Core Component 1: Customer-Centric Approach
The first core component of Freshworks' mission statement emphasizes a customer-centric approach. Freshworks strives to create solutions that cater to the unique needs of its clients, ensuring that they can deliver superior service to their customers. This commitment is demonstrated by Freshworks' net dollar retention rate of 107% as of September 30, 2024, indicating strong customer satisfaction and loyalty. The company supports over 22,000 customers contributing more than $5,000 in annual recurring revenue (ARR), representing a 14% increase from the previous year.
Core Component 2: Innovation and Quality
The second core component focuses on innovation and quality in product development. Freshworks continuously invests in research and development to enhance its product offerings. For the nine months ended September 30, 2024, the company reported $123.6 million in research and development expenses, up 21% from the previous year. This investment reflects the company's dedication to delivering high-quality software solutions that meet evolving market demands.
Core Component 3: Operational Efficiency
The third core component of Freshworks' mission statement is centered on operational efficiency. The company aims to simplify business processes through its cloud-based software solutions. Freshworks achieved a gross margin of 84% for the nine months ended September 30, 2024, an improvement from 82% in the prior year, demonstrating effective cost management alongside revenue growth. Additionally, total revenue for the same period was $525.8 million, marking a 21% increase from the previous year.
| Metric | 2024 | 2023 | Growth (%) |
|---|---|---|---|
| Net Dollar Retention Rate | 107% | 108% | -1% |
| Customers Contributing >$5,000 ARR | 22,359 | 19,551 | 14% |
| R&D Expenses ($M) | $123.6 | $101.9 | 21% |
| Gross Margin (%) | 84% | 82% | 2% |
| Total Revenue ($M) | $525.8 | $436.3 | 21% |
Vision Statement of Freshworks Inc. (FRSH)
Vision Statement Overview
The vision statement of Freshworks Inc. (FRSH) for 2024 emphasizes the company's commitment to delivering exceptional customer experiences through innovative technology solutions. It articulates a future where businesses can harness the power of customer engagement software to enhance their operational efficiency and foster deeper relationships with their clients.
Innovation in Customer Engagement
Freshworks envisions a world where technology seamlessly integrates into customer interactions. The company aims to leverage artificial intelligence and machine learning to personalize customer experiences. As part of its strategy, Freshworks has invested significantly in research and development, with expenses reaching $123.6 million for the nine months ended September 30, 2024, marking a 21% increase from the prior year.
Empowering Businesses
The company's vision also encompasses empowering businesses of all sizes to thrive in a competitive landscape. Freshworks targets small and medium-sized enterprises (SMEs) by providing affordable, user-friendly solutions. As of September 30, 2024, Freshworks reported a net dollar retention rate of 107%, indicating strong customer loyalty and the successful expansion of services within existing accounts.
Global Reach and Accessibility
Freshworks aims to expand its global footprint, ensuring that its solutions are accessible to a diverse range of customers. The company currently serves over 22,359 customers contributing more than $5,000 in annual recurring revenue (ARR), representing a 14% growth from the previous year. This growth is a testament to Freshworks' strategy of addressing the unique needs of various markets worldwide.
Sustainability and Social Responsibility
In alignment with its vision, Freshworks is committed to sustainability and social responsibility. The company seeks to minimize its environmental impact through responsible operational practices and to contribute positively to the communities it serves. Freshworks has initiated several corporate social responsibility programs aimed at community engagement and environmental stewardship.
Investment in Technology and Talent
To realize its vision, Freshworks is focused on investing in cutting-edge technology and attracting top talent. The sales and marketing expenses for the nine months ended September 30, 2024, totaled $300.1 million, reflecting a 13% increase year-over-year, aimed at enhancing brand presence and expanding market share.
Financial Performance Metrics
| Metric | Q3 2024 | Q3 2023 | Growth (%) |
|---|---|---|---|
| Total Revenue | $186.6 million | $153.6 million | 22% |
| Net Loss | $(29.96 million) | $(31.03 million) | 6% |
| Operating Expenses | $195.6 million | $166.0 million | 18% |
| Research and Development Expenses | $47.9 million | $34.9 million | 37% |
Conclusion
Freshworks Inc.'s vision for 2024 is centered on innovation, empowerment, accessibility, sustainability, and investment. The company is strategically positioned to leverage its strengths in technology and customer engagement to achieve its long-term goals while maintaining a commitment to social responsibility and community engagement.
Core Values of Freshworks Inc. (FRSH)
Core Value: Customer Focus
Customer focus is a fundamental value at Freshworks Inc., emphasizing the importance of understanding and addressing customer needs.
In 2024, Freshworks reported a net dollar retention rate of 107%, indicating strong customer loyalty and the ability to expand revenue from existing clients despite macroeconomic challenges. The company's revenue from subscription services increased by 23% year-over-year to $184.4 million for the three months ended September 30, 2024.
Freshworks has implemented various customer success initiatives, including dedicated support teams and tailored onboarding processes, to enhance customer experience and satisfaction. The acquisition of Device42 in June 2024 further expanded their offerings, allowing them to provide comprehensive IT asset management solutions, thereby addressing a broader range of customer requirements.
Core Value: Innovation
Innovation drives Freshworks' growth and product development, ensuring that they remain competitive in the cloud software market.
For the nine months ended September 30, 2024, Freshworks increased its research and development expenses by 21%, totaling $123.6 million. This commitment to innovation is evident in their continuous product updates and the introduction of new features, which are designed to enhance user experience and operational efficiency for customers.
Moreover, the acquisition of Device42 for $238.1 million has allowed Freshworks to innovate further by integrating advanced IT asset management capabilities into their existing product suite.
Core Value: Integrity
Integrity is a core value that underpins Freshworks' operations and interactions with customers, partners, and employees.
As of September 30, 2024, Freshworks reported an accumulated deficit of $3.7 billion, reflecting the challenges faced in achieving profitability while maintaining a commitment to transparency and ethical business practices. The company's financial statements are prepared in accordance with GAAP, ensuring accountability and integrity in financial reporting.
Freshworks has established policies and practices to promote ethical behavior and compliance across all levels of the organization, reinforcing its commitment to integrity in every aspect of its business operations.
Core Value: Collaboration
Collaboration is essential for fostering a work environment that encourages teamwork and collective problem-solving.
Freshworks has demonstrated its commitment to collaboration through various initiatives aimed at improving inter-departmental communication and teamwork. The company's operating expenses for general and administrative purposes increased by 8%, reflecting investments in team-building and collaborative tools.
Additionally, the company has adopted agile methodologies in product development, allowing teams to work collaboratively across functions to deliver innovative solutions more efficiently.
Core Value: Respect
Respect is a foundational value at Freshworks, guiding interactions with customers, employees, and stakeholders.
Freshworks has been recognized for its positive workplace culture, which is reflected in its employee engagement scores and initiatives aimed at promoting diversity and inclusion. As of September 30, 2024, the company reported an increase in the number of customers contributing more than $5,000 in annual recurring revenue (ARR) to 22,359, showcasing respect for its customer base by providing value and building long-lasting relationships.
The company actively supports employee development through training programs and career advancement opportunities, reinforcing a culture of respect and appreciation for individual contributions.
| Core Value | Description | 2024 Metrics |
|---|---|---|
| Customer Focus | Understanding and addressing customer needs. | Net Dollar Retention Rate: 107% |
| Innovation | Driving growth through product development. | R&D Expenses: $123.6 million (21% increase) |
| Integrity | Commitment to ethical business practices. | Accumulated Deficit: $3.7 billion |
| Collaboration | Encouraging teamwork and collective problem-solving. | G&A Expenses: $133.1 million (8% increase) |
| Respect | Cultivating positive relationships with stakeholders. | Customers > $5,000 ARR: 22,359 |
Freshworks Inc. (FRSH) DCF Excel Template
5-Year Financial Model
40+ Charts & Metrics
DCF & Multiple Valuation
Free Email Support
Updated on 16 Nov 2024
Resources:
- Freshworks Inc. (FRSH) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Freshworks Inc. (FRSH)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Freshworks Inc. (FRSH)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.