Freshworks crosses $100 million revenue quarterly milestone

NASDAQ-listed software firm Freshworks revenue grew to $105.5 million, up 44 percent for the fourth quarter ending December 2021. This is the first ever quarter the company has crossed the $100 million revenue mark.

Freshworks reported a loss of $56.4 million, from $3.4 million loss it reported in the fourth quarter 2020.

“We had a strong finish to the year as we surpassed $100 million in quarterly revenue and achieved 44 percent year-over-year growth in the fourth quarter,” Girish Mathrubootham, CEO and founder of Freshworks, said in a statement. “I’m incredibly proud of our employees for their focus and dedication as we continue to innovate on our products, put customers first, and execute as a public company,” he added.

For the full year ended December 2021, the company reported $371.0 million in revenue, up 49 percent compared to 2020. It reported a loss from operations of $204.8 million, compared to $56.1 million in 2020.

The company also reported declining free cash flow at $2.8 million in Q4 2021, from $11.9 million in the same period last year. For the year, free cash flow declined 90 percent year-on-year to $2.3 million in 2021.

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The company gave a guidance of $486.5 million - $495.0 million, in the 31-33 percent range, for 2022. It expects the revenue of $107.0 million - $109.0 million for the first quarter of 2022.

On February 14, some of the shares that were locked-in will now be eligible for sale. “Beginning at the opening of trading on Monday, February 14, 2022, all remaining shares subject to the terms of certain lock-up agreements entered into by Freshworks’ directors and officers and certain holders of Freshworks’ common stock with the underwriters of Freshworks’ initial public offering will become eligible for sale in the public market, subject to any trading limitations on shares held by affiliates of Freshworks, continued vesting of any unvested equity awards and Freshworks' Insider Trading Policy,” the company said in the statement.

Mathrubootham-led Freshworks became the first Indian SaaS firm to go public on the US stock exchanges in September 2021 and was valued at $13 billion. The company competes with players Salesforce, and overtook its  rival Zendesk in terms of market cap. The company has over 14,000 large customers, who pay more than $5000 in annual recurring revenue.