Freshworks Inc. · NASDAQ:FRSH
Freshworks — Q4 2024 Earnings Presentation
20 slides from Freshworks's earnings presentation, Feb 11, 2025
Slide 1: Q4 2024 Earnings Presentation
Q4 2024 Earnings Presentation February 11, 2025 © 2025 Freshworks Inc. All rights reserved.
Slide 2: Disclaimer
Disclaimer This presentation has been prepared by Freshworks Inc. (“Freshworks”) for informational purposes only and not for any other purpose. Nothing contained in this presentation is, or should be construed as, a recommendation, promise, or representation by Freshworks or any officer, director, emp
Slide 3: Use of Non-GAAP Measures
Use of Non-GAAP Measures In addition to the U.S. generally accepted accounting principles (“GAAP”) financials, this presentation includes certain non-GAAP financial measures, including non-GAAP income from operations and adjusted free cash flow. This presentation also includes certain non-GAAP metrics,
Slide 4: 2024 Freshworks Inc. All rights reserved.
© 2025 2024 Freshworks Inc. All rights reserved.
Slide 5: Working with amazing brands around the globe
Working with amazing brands around the globe 72,000+ customers in over 120 countries over multiple verticals Retail, logistics, Financial Auto and Media and Hospitality and State, local High-tech and ecommerce services manufacturing entertainment transportation and education © 2025 Freshworks Inc. A
Slide 6: Welcoming more customers every quarter…
Welcoming more customers every quarter… © 2025 Freshworks Inc. All rights reserved.
Slide 7: Large Customers are using Freshworks
Large Customers are using Freshworks Over 60% of total ARR comes from Mid Market and Enterprise Customers Represents ARR distribution of the following segments: 23% Mid Market & 46% 54% Enterprise 77% SMB Employee Experience Customer Experience Note: Data as of December 31, 2024. We define “Mid Marke
Slide 8: Freshworks solutions
Freshworks solutions Freshworks Platform and Freddy infuse AI across all products Employee Experience Customer Experience PRODUCTS Freshservice Freshservice Device42 Freshdesk Freshdesk Freshchat Freshsales Freshmarketer for Business Teams Omni* PLATFORM Freshworks Platform Freddy AI AI Freddy AI Ag
Slide 9: Revenue by quarter
Revenue by quarter $200M ($ in millions) $194.6 $186.6 $175M $174.1 $165.1 $160.1 $150M $125M $100M Q4-23 Q1-24 Q2-24 Q3-24 Q4-24 YoY Growth 20% 20% 20% 22% 22% YoY Growth CC 19% 19% 20% 22% 21% Note: Revenue growth rates adjusted for constant currency are based on average exchange rates in effect d
Slide 10: Revenue by geography
Revenue by geography 3% 3% 3% 3% 3% 13% 13% 13% 12% 12% 39% 39% 39% 38% 39% 45% 45% 45% 46% 47% Q4-23 Q1-24 Q2-24 Q3-24 Q4-24 Rest of World Asia-Pacific Europe, Middle East, Africa North America © 2025 Freshworks Inc. All rights reserved. Note: Numbers rounded for presentation purposes and may not fo
Slide 11: Total customers
Total customers (in thousands) 70K 72.2 68.8 69.6 67.1 67.5 60K 50K 40K 30K Q4-23 Q1-24 Q2-24 Q3-24 Q4-24 YoY Growth 6% 4% 5% 5% 8% © 2025 Freshworks Inc. All rights reserved.
Slide 12: Customer metrics
Customer metrics Customers >$5K ARR Customers >$50K ARR 25,000 3,000 3,053 3,008 2,839 22,558 22,359 2,500 21,744 2,593 20,000 2,497 20,261 20,549 2,000 15,000 1,500 10,000 1,000 Q4-23 Q1-24 Q2-24 Q3-24 Q4-24 Q4-23 Q1-24 Q2-24 Q3-24 Q4-24 YoY Growth 14% 11% 14% 14% 11% YoY Growth 31% 29% 30% 33% 22%
Slide 13: Net dollar retention
Net dollar retention 120% 110% 108% 107% 106% 106% 106% 106% 107% 105% 105% 100% 103% 90% Q4-23 Q1-24 Q2-24 Q3-24 Q4-24 Net Dollar Retention Net Dollar Retention CC Net Dollar Retention Rate is calculated by taking the Ending ARR of the cohort of customers from 12 months prior divided by the Enterin
Slide 14: Non-GAAP income from operations
Non-GAAP income from operations ($ in millions) $40.0 $40.3 $30.0 $20.0 $24.0 $21.8 $10.0 $13.1 $11.5 $0.0 Q4-23 Q1-24 Q2-24 Q3-24 Q4-24 Note: 2024 financial data reflects unaudited results as of December 31, 2024. See Appendix for reconciliation of all GAAP to Non-GAAP financial measures. Q4’24 Non-GA
Slide 15: Free cash flow
Free cash flow $50.0 ($ in millions) $40.0 $41.7 $40.1 $38.7 $32.8 $30.0 $28.6 $20.0 $10.0 $0.0 Q4-23 Q1-24 Q2-24 Q3-24 Q4-24 We define free cash flow as net cash provided by operating activities, less purchases of property and equipment and capitalized internal-use software. We believe that free cash
Slide 16: Financial outlook
Financial outlook ($ in millions except for per share data) Q1-25 2025 Revenue(1) $190.0 - $193.0 $809.0 - $821.0 Year-over-year growth 15% - 17% 12% - 14% Year-over-year growth (constant currency) 16% - 18% 13% - 15% Non-GAAP income from operations(1) $32.5 - $34.5 $131.0 - $139.0 Non-GAAP net inco
Slide 17: GAAP to non-GAAP Reconciliations
GAAP to non-GAAP Reconciliations © 2025 Freshworks Inc. All rights reserved.
Slide 18: GAAP to non-GAAP Reconciliations: Revenue
GAAP to non-GAAP Reconciliations Revenue ($ in millions) Q4-23 Q1-24 Q2-24 Q3-24 Q4-24 GAAP Revenue $160.1 $165.1 $174.1 $186.6 $194.6 YoY Growth rates 20% 20% 20% 22% 22% Add: Effects of foreign currency rate fluctuations ($2.2) ($0.6) $0.2 $0.1 ($1.0) Revenue adjusted for constant currency(1) $157.
Slide 19: GAAP to non-GAAP Reconciliations: Income (loss) from operations
GAAP to non-GAAP Reconciliations Income (loss) from operations ($ in millions) Q4-23 Q1-24 Q2-24 Q3-24 Q4-24 GAAP (loss) from operations ($40.0) ($32.2) ($43.8) ($38.9) ($23.8) Add: stock-based compensation expense - employee awards $50.6 $52.4 $55.1 $58.7 $50.4 Add: employer taxes and employee stoc
Slide 20: GAAP to non-GAAP Reconciliations: Free cash flow
GAAP to non-GAAP Reconciliations Free cash flow ($ in millions) Q4-23 Q1-24 Q2-24 Q3-24 Q4-24 Net cash provided by operating activities $30.9 $40.6 $36.3 $42.3 $41.4 Less: purchases of property and equipment ($1.1) ($0.7) ($2.3) ($1.1) ($5.1) Less: capitalized internal-use software ($1.2) ($1.2) ($1.