Freshworks (NASDAQ:FRSH) Posts Quarterly Earnings Results, Beats Expectations By $0.05 EPS

Freshworks (NASDAQ:FRSH - Get Free Report) posted its earnings results on Tuesday. The company reported $0.18 earnings per share for the quarter, topping analysts' consensus estimates of $0.13 by $0.05, Briefing.com reports. The company had revenue of $196.27 million for the quarter, compared to analyst estimates of $191.90 million. Freshworks had a negative net margin of 13.24% and a negative return on equity of 6.63%. The firm's revenue was up 18.9% compared to the same quarter last year. During the same quarter in the prior year, the business posted $0.10 EPS. Freshworks updated its FY 2025 guidance to 0.560-0.580 EPS and its Q2 2025 guidance to 0.100-0.120 EPS.

Freshworks Price Performance

NASDAQ:FRSH traded up $0.45 during trading hours on Wednesday, hitting $14.79. The stock had a trading volume of 1,980,142 shares, compared to its average volume of 3,624,453. The firm has a market capitalization of $4.46 billion, a price-to-earnings ratio of -46.18 and a beta of 0.98. Freshworks has a one year low of $10.81 and a one year high of $19.77. The company has a 50 day simple moving average of $14.51 and a two-hundred day simple moving average of $15.36.

Insider Buying and Selling

In other news, Director Zachary Nelson sold 8,442 shares of the company's stock in a transaction on Monday, February 3rd. The shares were sold at an average price of $18.30, for a total value of $154,488.60. Following the completion of the sale, the director now owns 24,187 shares of the company's stock, valued at approximately $442,622.10. This represents a 25.87 % decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Also, Director Johanna Flower sold 1,450 shares of the company's stock in a transaction dated Thursday, February 20th. The shares were sold at an average price of $18.01, for a total transaction of $26,114.50. Following the sale, the director now owns 41,491 shares of the company's stock, valued at approximately $747,252.91. The trade was a 3.38 % decrease in their ownership of the stock. The disclosure for this sale can be found here. Over the last quarter, insiders have sold 29,177 shares of company stock worth $498,042. Corporate insiders own 19.15% of the company's stock.

Wall Street Analyst Weigh In

FRSH has been the topic of several analyst reports. JMP Securities set a $27.00 target price on Freshworks in a research report on Wednesday, February 12th. Needham & Company LLC reaffirmed a "buy" rating and set a $25.00 price objective on shares of Freshworks in a report on Monday, March 17th. UBS Group set a $22.00 target price on shares of Freshworks in a report on Thursday, February 6th. Scotiabank reduced their price objective on shares of Freshworks from $19.00 to $14.00 and set a "sector perform" rating for the company in a research report on Thursday, April 24th. Finally, StockNews.com raised shares of Freshworks from a "hold" rating to a "buy" rating in a research report on Thursday, February 13th. One analyst has rated the stock with a sell rating, five have issued a hold rating and eight have given a buy rating to the company. Based on data from MarketBeat, Freshworks has an average rating of "Moderate Buy" and a consensus price target of $19.79.

About Freshworks

Freshworks Inc, a software development company, provides software-as-a-service products worldwide. It offers Freshworks Customer Service Suite, which provides automated, personalized self-service on various channels, including web, chat, mobile messaging, email, and social; Freshdesk, a ticketing-centric customer service solution; Freshsuccess, a customer success solution; and Freshchat that provides agents with a modern conversational experience to proactively engage customers across digital messaging channels.