Freshworks (NASDAQ:FRSH) Posts Quarterly Earnings Results, Misses Expectations By $0.10 EPS

Freshworks (NASDAQ:FRSH) released its quarterly earnings data on Tuesday. The company reported ($0.02) earnings per share for the quarter, missing the consensus estimate of $0.08 by ($0.10), Zacks reports. Freshworks had a negative net margin of 14.80% and a negative return on equity of 8.57%. Freshworks updated its FY 2025 guidance to 0.520-0.540 EPS and its Q1 2025 guidance to 0.120-0.140 EPS.

Freshworks Price Performance

Shares of FRSH stock opened at $17.86 on Wednesday. Freshworks has a 12-month low of $10.81 and a 12-month high of $22.14. The business has a 50 day simple moving average of $16.94 and a 200 day simple moving average of $14.05. The firm has a market capitalization of $5.41 billion, a price-to-earnings ratio of -52.53 and a beta of 0.91.

Wall Street Analyst Weigh In

A number of brokerages have recently weighed in on FRSH. JMP Securities raised their price objective on shares of Freshworks from $21.00 to $24.00 and gave the stock a “market outperform” rating in a research note on Thursday, November 7th. Oppenheimer upped their price objective on shares of Freshworks from $22.00 to $24.00 and gave the company an “outperform” rating in a research note on Wednesday. Canaccord Genuity Group lifted their price objective on Freshworks from $17.00 to $19.00 and gave the company a “buy” rating in a research report on Thursday, November 7th. JPMorgan Chase & Co. upped their price objective on shares of Freshworks from $17.00 to $20.00 and gave the company an “overweight” rating in a research note on Thursday, November 7th. Finally, Needham & Company LLC upped their price target on shares of Freshworks from $20.00 to $25.00 and gave the stock a “buy” rating in a research report on Wednesday. One equities research analyst has rated the stock with a sell rating, five have assigned a hold rating and nine have given a buy rating to the company’s stock. Based on data from MarketBeat.com, the company currently has an average rating of “Moderate Buy” and an average target price of $20.29.

Insider Activity

In other Freshworks news, insider Mika Yamamoto sold 2,859 shares of Freshworks stock in a transaction dated Monday, February 3rd. The stock was sold at an average price of $18.29, for a total transaction of $52,291.11. Following the transaction, the insider now owns 397,390 shares of the company’s stock, valued at $7,268,263.10. The trade was a 0.71 % decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is available through this hyperlink. Also, Director Jennifer H. Taylor sold 4,690 shares of the stock in a transaction that occurred on Tuesday, December 10th. The stock was sold at an average price of $16.74, for a total transaction of $78,510.60. Following the completion of the sale, the director now owns 36,689 shares of the company’s stock, valued at approximately $614,173.86. The trade was a 11.33 % decrease in their position. The disclosure for this sale can be found here. Over the last ninety days, insiders have sold 1,727,211 shares of company stock valued at $27,224,746. 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.