Freshworks Q1: Net Loss Narrows 45% YoY To $23 Mn, Revenue Jumps 20%

Nasdaq-listed Indian SaaS major Freshworks posted a consolidated net loss of $23.3 Mn in the first quarter ended March 31, 2024, registering a 45.3% decline year-on-year (YoY).

Meanwhile, the company’s total revenue jumped 20% to $165.1 Mn in Q1 2024 from $137.7 Mn posted in the corresponding quarter of the previous year.

Commenting on the Q1 results, Girish Mathrubootham, CEO and founder of Freshworks, said, “I’m particularly proud of the progress we’ve made in AI innovation across our products, and its tangible impact on our customers.”

“We remain more focused than ever on product innovation, bringing more large customers onto our platform, and expanding adoption of products across our portfolio,” said Mathrubootham, who is also stepping down from his position as a CEO in the company.

Along with announcing the Q1 results, Freshworks said Mathrubootham would be redesignated as executive chairman while president Dennis Woodside has been appointed as the next CEO.

Following the announcements, shares of Freshworks declined over 20% in the extended trading session on Wednesday (May 1).

On the other hand, Freshworks’s gross profit increased 24% YoY to $139.3 Mn in Q1.

The company said that the number of customers contributing over $5,000 in ARR stood at 20,549 in the reported quarter, an increase of 11% YoY. Dark Matter Technologies, British Transport Police, YoungCapital, Coeur Mining, and Kramp were among the new customers added in Q1. 

The company’s free cash flow stood at $38.7 Mn at the end of Q1 2024 as against $9.1 Mn in the corresponding quarter of the previous year.

Freshworks said it expects its Q2 2024 revenue in the range of $168 Mn-$170 Mn, registering a 16-17% growth YoY.