In a major internal rejig, Girish Mathrubootham, who was the chief executive officer (CEO) of Nasdaq-listed Freshworks has now become the executive chairman of the company while Dennis Woodside, has been named his replacement and is now the chief executive effective May 1.
"Freshworks is my baby, and over the years I have seen her grow—as a toddler trying to walk, a child growing really fast, and a teenager growing stronger. The emotions running through my mind are similar to a father experiencing his beloved daughter’s marriage, happy and sad at the same time, knowing fully well that she has found the right one and is going to accomplish greater things in life," said Mathrubootham, in a statement to the company's employees.
Post the announcement, Freshworks' shares dropped nearly 25% on May 2nd and are trading at $13.75 apiece.
Mathrubootham will now be spending more time on the long-term product vision, innovation and AI strategy.
“We brought Dennis on board to partner with me on crafting an ambitious growth plan, and my hope was that he could eventually lead the team of talented employees around the world to execute it, which would allow me to spend more time on the long-term product vision, innovation and AI strategy,” said Mathrubootham.
This comes two months after the board of directors of Nasdaq-listed Software-as-a-Service firm Freshworks cancelled the CEO Performance Award of six million stock units allotted to founder and CEO Girish Mathurbootham in 2022 citing changes in performance targets due to tough macroeconomic conditions.
“The transition frees him up to spend more time with our product teams in India, and our customers globally, and stay engaged with other external stakeholders,” the company’s statement said.
Since founding Freshworks in 2010, Mathrubootham has been a key force for Freshworks to move from a small startup in Chennai into Nasdaq-listed software firm in the US.
Mathrubootham steered Freshworks through an IPO on Nasdaq in September 2021, making Freshworks the first India-born SaaS firm to trade on a US exchange.
The top rejig will also allow Mathrubootham to focus on his investment journey. Mathrubootham along with Eka Software founder Manav Garg in 2021 announced the launch of their new venture fund ‘Together’ with a key focus on backing early-stage software products companies being built out of India or by Indian founders.
Mathrubootham’s other interests also include coaching football. Mathrubootham built a football academy for Rs 100 crore in Mahabalipuram, which has been christened the Home of FC Madras.
In September of 2022, Freshworks announced the appointment of Dennis Woodside as its new President responsible for leading Freshworks’ global business operations and strategy.
Previously, Woodside served as the Chief Operating Officer of Dropbox, helping grow revenue from $250M to $1.3B and ultimately raising over $1B in a successful IPO in 2018.
Prior to that, Woodside held various sales and strategy leadership roles at Google from 2003 to 2014, including serving as CEO of Motorola Mobility after Google acquired the company in 2012.
The top rejig also comes when there have been a slew of management changes within the SaaS firm.
In Q4, the firm’s Chief Revenue Officer Pradeep Rathinam left the firm and Abe Smith was appointed as the global field operations leader. Other recent appointments include Mika Yamamoto as its first Chief Customer and Marketing Officer (CCMO), and Johanna Jackman as the new Chief People Officer (CPO).
Freshworks reported consolidated revenue of $165.1 million, up 20 percent year-on-year (YoY), with non-GAAP operating profit zooming to $21.8 million as against $3.9 million in the first quarter of 2023.
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