Last month it reported a net loss of $107.4 Mn for July-September
Freshworks announced an early partial lifting of the lock-in period for 58.2 Mn shares effective November 4th, 2021
It had made stellar debut on the NASDAQ in September at a valuation of over $10 Bn
Shares of homegrown SaaS major Freshworks have declined 30.63% over the past one month.
They have largely been on the downside since reporting a consolidated net loss last month of $107.4 Mn for the quarter ended September. It was the company’s first financial result since its public listing.
During the same period last year, the Chennai-based SaaS giant had reported net profit of $13.87 Mn. Freshworks, however, registered a 46% rise in its revenue to $96.6 Mn, from $66.2 Mn during the third quarter (July-September) of 2020.
The losses came on the back of a massive 305% rise in expenses to $214.63 Mn during the period under review.
Further, stock markets globally have also been under pressure of late over the concerns of the Omicron variant of Covid-19.
Analysts also said that the partial end of its lock-in period on November 4th, 2021 also resulted in selling pressure on the stocks.
Under the IPO, the SaaS unicorn on October 29th announced an early closure of the lock in period for around 58.2 Mn shares under certain agreements by Freshworks’ directors and officers and certain holders of Freshworks’ common stock. The shares became eligible for sale in the public market on November 4th, 2021.
Later, the top management and employees of Nasdaq-listed Freshworks initiated a sale of 13,555,142 equity shares in one of India’s largest ESOP schemes at $43.13 per share.
Its shares, however, recovered on Wednesday as the US stock markets surged on the back of hopes that policy tightening by the Federal Reserve would help curb inflation without impacting growth.
Post its meeting on December 14-15, the US Fed said it would end its pandemic-era bond purchases in March and pave the way for three quarter-percentage-point interest rate hikes by the end of 2022.
Its market capitalisation currently stands at $7.11 Bn.
The startup made a stellar debut on the NASDAQ in September this year with a valuation of over $10 Bn. On the first day of its trading on the public markets, its shares closed at $47.55 per share, against the listing price of $36 per share, taking its market capitalisation to $13.3 Bn.