Freshworks Q4 2024 Earnings Show Strong Growth and Profitability

Freshworks exhibits robust performance in Q4 2024 with revenue growth of 22% year-over-year, bolstering investor confidence. The company exceeded estimates in revenue and operating margin, driving optimism for future performance.

Date: 12-02-2025

AI Rating: 7

Strong Performance Metrics
Freshworks reported a significant growth in revenue, achieving a 22% year-over-year increase, reaching $194.6 million in Q4 2024. This growth exceeds previously set estimates, indicating a strong market position.

Profit Margins
The company delivered a non-GAAP operating margin of 21%, showcasing efficient management of operational costs. This is an 800 basis point improvement quarter over quarter, further enhancing investor confidence as it reaches a key milestone in profitability.

Free Cash Flow
Freshworks generated $41.7 million in adjusted free cash flow, which translates to a free cash flow margin of 21%. The impressive cash flow generation reflects strong operational efficiency and prioritization of profitable growth strategies.

Net Income and EPS Outlook
For Q1 2025, the company is guiding towards an estimated non-GAAP net income per share of between $0.12 and $0.14 on approximately 307.3 million shares, indicating stable earnings expectations along with anticipated revenue growth of 15% to 17% year-over-year. This suggests a confident outlook by management regarding future earnings capacity.

Strategic Market Position
Freshworks effectively attracts mid-market and enterprise customers, achieving a net dollar retention rate of 105% on a constant-currency basis, signifying excellent customer retention and expansion potential. Notable big-name customer additions and increased upsell in existing accounts enhance this narrative.

Stocks: FRSH