Freshworks (NASDAQ:FRSH) Releases FY 2025 Earnings Guidance

Freshworks (NASDAQ:FRSH) updated its FY 2025 earnings guidance on Thursday. The company provided earnings per share (EPS) guidance of 0.620-0.640 for the period, compared to the consensus estimate of 0.300. The company issued revenue guidance of $833.1 million-$836.1 million, compared to the consensus revenue estimate of $825.6 million.

Analyst Upgrades and Downgrades

Several brokerages recently issued reports on FRSH. JMP Securities restated a “market outperform” rating and set a $27.00 price objective on shares of Freshworks in a research note on Friday, September 12th. Wells Fargo & Company initiated coverage on Freshworks in a research report on Tuesday, September 30th. They issued an “equal weight” rating and a $13.00 target price on the stock. Zacks Research raised Freshworks from a “hold” rating to a “strong-buy” rating in a research report on Monday, September 29th. Needham & Company LLC reaffirmed a “buy” rating and issued a $25.00 target price on shares of Freshworks in a research report on Friday, September 12th. Finally, Piper Sandler increased their target price on Freshworks from $22.00 to $25.00 and gave the stock an “overweight” rating in a research report on Wednesday, July 30th. One investment analyst has rated the stock with a Strong Buy rating, eight have given a Buy rating, six have given a Hold rating and one has given a Sell rating to the stock. According to data from MarketBeat.com, the stock currently has an average rating of “Moderate Buy” and an average target price of $20.07.

Freshworks Price Performance

Shares of NASDAQ FRSH opened at $11.06 on Thursday. Freshworks has a 1-year low of $10.76 and a 1-year high of $19.77. The business’s fifty day moving average price is $12.01 and its two-hundred day moving average price is $13.55. The firm has a market capitalization of $3.22 billion, a PE ratio of -61.44 and a beta of 0.90.

Freshworks (NASDAQ:FRSH) last issued its quarterly earnings results on Thursday, September 11th. The company reported $0.18 EPS for the quarter. The company had revenue of $204.68 million for the quarter. Freshworks had a negative return on equity of 2.56% and a negative net margin of 7.02%. Equities research analysts expect that Freshworks will post -0.19 earnings per share for the current fiscal year.

Insider Activity at Freshworks

In related news, insider Mika Yamamoto sold 4,289 shares of the stock in a transaction dated Tuesday, September 2nd. The shares were sold at an average price of $13.18, for a total value of $56,529.02. Following the completion of the transaction, the insider owned 533,993 shares in the company, valued at $7,038,027.74. This represents a 0.80% decrease in their position. The sale was disclosed in a filing with the SEC, which is available at this hyperlink. Also, Director Jennifer H. Taylor sold 4,690 shares of the stock in a transaction dated Monday, August 11th. The shares were sold at an average price of $12.53, for a total transaction of $58,765.70. Following the completion of the transaction, the director owned 44,218 shares of the company’s stock, valued at $554,051.54. This represents a 9.59% decrease in their position. The disclosure for this sale is available in the SEC filing. Over the last quarter, insiders have sold 27,828 shares of company stock worth $358,968. 11.17% of the stock is currently owned by corporate insiders.

Hedge Funds Weigh In On Freshworks

A number of institutional investors and hedge funds have recently bought and sold shares of the stock. State of Wyoming bought a new position in Freshworks in the 2nd quarter valued at about $354,000. Headlands Technologies LLC grew its holdings in Freshworks by 37.4% during the second quarter. Headlands Technologies LLC now owns 104,089 shares of the company’s stock worth $1,552,000 after acquiring an additional 28,335 shares during the period. Tower Research Capital LLC TRC grew its holdings in Freshworks by 292.1% during the second quarter. Tower Research Capital LLC TRC now owns 35,376 shares of the company’s stock worth $527,000 after acquiring an additional 26,354 shares during the period. Topline Capital Management LLC grew its holdings in Freshworks by 27.2% during the second quarter. Topline Capital Management LLC now owns 1,933,213 shares of the company’s stock worth $28,824,000 after acquiring an additional 413,213 shares during the period. Finally, Man Group plc grew its holdings in Freshworks by 9.5% during the second quarter. Man Group plc now owns 1,002,003 shares of the company’s stock worth $14,940,000 after acquiring an additional 87,044 shares during the period. Institutional investors own 75.58% of the company’s stock.

About Freshworks

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.