Freshworks (NASDAQ:FRSH) Updates FY 2025 Earnings Guidance

Freshworks (NASDAQ:FRSH) issued an update on its FY 2025 earnings guidance on Tuesday morning. The company provided earnings per share guidance of 0.520-0.540 for the period, compared to the consensus earnings per share estimate of 0.520. The company issued revenue guidance of $809.0 million-$821.0 million, compared to the consensus revenue estimate of $813.5 million. Freshworks also updated its Q1 2025 guidance to 0.120-0.140 EPS.

Freshworks Stock Performance

Freshworks stock traded down $0.44 during midday trading on Tuesday, reaching $17.86. The stock had a trading volume of 6,759,069 shares, compared to its average volume of 3,999,027. Freshworks has a twelve month low of $10.81 and a twelve month high of $22.14. The stock has a market capitalization of $5.41 billion, a PE ratio of -52.53 and a beta of 0.91. The stock’s 50-day simple moving average is $16.90 and its 200 day simple moving average is $14.02.

Freshworks (NASDAQ:FRSH) last released its quarterly earnings data on Tuesday, February 11th. The company reported ($0.02) EPS for the quarter, missing the consensus estimate of $0.08 by ($0.10). Freshworks had a negative net margin of 14.80% and a negative return on equity of 8.57%. Equities analysts predict that Freshworks will post -0.35 earnings per share for the current fiscal year.

Analysts Set New Price Targets

Several research firms have commented on FRSH. JMP Securities raised their price objective on Freshworks from $21.00 to $24.00 and gave the company a “market outperform” rating in a research report on Thursday, November 7th. Morgan Stanley raised their price objective on Freshworks from $18.00 to $19.00 and gave the company an “equal weight” rating in a research report on Monday, January 13th. Piper Sandler raised their price objective on Freshworks from $18.00 to $20.00 and gave the company an “overweight” rating in a research report on Monday, January 6th. Canaccord Genuity Group lifted their target price on Freshworks from $17.00 to $19.00 and gave the stock a “buy” rating in a research report on Thursday, November 7th. Finally, Needham & Company LLC reaffirmed a “buy” rating and set a $20.00 target price on shares of Freshworks in a research report on Wednesday, January 15th. One investment analyst has rated the stock with a sell rating, five have given a hold rating and nine have assigned a buy rating to the company. According to MarketBeat.com, the stock has an average rating of “Moderate Buy” and an average price target of $19.07.

Insider Buying and Selling at Freshworks

In other Freshworks news, Director Zachary Nelson sold 8,442 shares of the company’s stock in a transaction that occurred on Monday, February 3rd. The stock was sold at an average price of $18.30, for a total value of $154,488.60. Following the completion of the sale, the director now directly owns 24,187 shares in the company, valued at $442,622.10. This represents a 25.87 % decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available at this hyperlink. Also, Chairman Rathnagirish Mathrubootham sold 830,000 shares of the company’s stock in a transaction on Friday, December 20th. The shares were sold at an average price of $15.33, for a total value of $12,723,900.00. Following the completion of the transaction, the chairman now directly owns 551,137 shares in the company, valued at $8,448,930.21. This represents a 60.10 % decrease in their position. The disclosure for this sale can be found here. Insiders sold a total of 1,727,211 shares of company stock worth $27,224,746 over the last ninety days. Company insiders own 19.15% 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.