Freshworks (NASDAQ:FRSH) Issues Quarterly Earnings Results, Beats Expectations By $0.06 EPS

Key Points

• Freshworks reported a strong earnings performance with $0.18 EPS, exceeding analysts' expectations of $0.11 EPS, while revenue grew by 19.6% year-over-year.
• The company updated its FY 2025 EPS guidance to a range of 0.560-0.580 and its Q3 2025 guidance to 0.120-0.140 EPS.
• Institutional investors hold 75.58% of Freshworks' stock, with notable increases from firms like Goldman Sachs, which raised its position by 35.1%.

Freshworks (NASDAQ:FRSH - Get Free Report) posted its quarterly earnings data on Tuesday. The company reported $0.18 earnings per share for the quarter, beating the consensus estimate of $0.12 by $0.06, Briefing.com reports. Freshworks had a negative return on equity of 2.56% and a negative net margin of 7.02%. The business had revenue of $204.68 million for the quarter, compared to analysts' expectations of $198.85 million. During the same period in the previous year, the firm posted $0.08 EPS. The business's revenue was up 19.6% on a year-over-year basis. Freshworks updated its FY 2025 guidance to 0.560-0.580 EPS and its Q3 2025 guidance to 0.120-0.140 EPS.

Freshworks Stock Down 2.4%

FRSH traded down $0.31 during trading on Friday, reaching $12.68. The company's stock had a trading volume of 7,737,112 shares, compared to its average volume of 5,189,084. The firm has a fifty day simple moving average of $14.79 and a two-hundred day simple moving average of $15.29. Freshworks has a 1 year low of $10.81 and a 1 year high of $19.77. The company has a market cap of $3.74 billion, a price-to-earnings ratio of -70.44 and a beta of 0.95.

Insiders Place Their Bets

In other Freshworks news, Director Zachary Nelson sold 8,433 shares of the firm's stock in a transaction that occurred on Wednesday, July 2nd. The shares were sold at an average price of $14.80, for a total value of $124,808.40. Following the transaction, the director directly owned 38,870 shares of the company's stock, valued at $575,276. This trade represents a 17.83% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available through this hyperlink. Also, Director Barry L. Padgett sold 7,558 shares of the firm's stock in a transaction that occurred on Tuesday, July 1st. The stock was sold at an average price of $15.14, for a total transaction of $114,428.12. Following the completion of the transaction, the director directly owned 32,635 shares in the company, valued at $494,093.90. This trade represents a 18.80% decrease in their ownership of the stock. The disclosure for this sale can be found here. Over the last three months, insiders sold 197,642 shares of company stock worth $3,095,380. 11.17% of the stock is currently owned by insiders.

Institutional Trading of Freshworks

Hedge funds and other institutional investors have recently made changes to their positions in the company. Focus Partners Wealth increased its holdings in shares of Freshworks by 20.2% during the 1st quarter. Focus Partners Wealth now owns 12,399 shares of the company's stock worth $175,000 after buying an additional 2,086 shares during the last quarter. Royal Bank of Canada increased its holdings in shares of Freshworks by 120.8% during the 1st quarter. Royal Bank of Canada now owns 21,388 shares of the company's stock worth $302,000 after buying an additional 11,703 shares during the last quarter. Woodline Partners LP increased its holdings in shares of Freshworks by 13.5% during the 1st quarter. Woodline Partners LP now owns 21,569 shares of the company's stock worth $304,000 after buying an additional 2,571 shares during the last quarter. Amundi increased its holdings in shares of Freshworks by 1.3% during the 1st quarter. Amundi now owns 80,074 shares of the company's stock worth $1,049,000 after buying an additional 1,040 shares during the last quarter. Finally, Goldman Sachs Group Inc. increased its holdings in shares of Freshworks by 35.1% during the 1st quarter. Goldman Sachs Group Inc. now owns 2,225,056 shares of the company's stock worth $31,396,000 after buying an additional 578,628 shares during the last quarter. Institutional investors and hedge funds own 75.58% of the company's stock.

Wall Street Analyst Weigh In

A number of analysts have recently commented on FRSH shares. Wall Street Zen raised Freshworks from a "buy" rating to a "strong-buy" rating in a research report on Sunday, June 29th. Piper Sandler set a $25.00 price objective on shares of Freshworks and gave the stock an "overweight" rating in a report on Wednesday. Morgan Stanley boosted their price objective on shares of Freshworks from $14.00 to $18.00 and gave the stock an "equal weight" rating in a report on Thursday, May 1st. Cantor Fitzgerald upgraded shares of Freshworks to an "overweight" rating and set a $20.00 target price for the company in a research note on Tuesday, June 3rd. Finally, JMP Securities restated a "market outperform" rating and issued a $27.00 price objective on shares of Freshworks in a research note on Wednesday, April 30th. One investment analyst has rated the stock with a sell rating, five have assigned a hold rating, eight have assigned a buy rating and one has given a strong buy rating to the stock. Based on data from MarketBeat, Freshworks presently has a consensus rating of "Moderate Buy" and an average target price of $20.29.

Freshworks Company Profile

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.