{"id":12066,"date":"2022-02-11T01:52:07","date_gmt":"2022-02-11T01:52:07","guid":{"rendered":"https:\/\/mailinvest.blog\/index.php\/2022\/02\/11\/freshworks-shares-drop-despite-slightly-better-than-expected-revenue-and-outlook\/"},"modified":"2022-02-11T01:52:07","modified_gmt":"2022-02-11T01:52:07","slug":"freshworks-shares-drop-despite-slightly-better-than-expected-revenue-and-outlook","status":"publish","type":"post","link":"https:\/\/mailinvest.blog\/index.php\/2022\/02\/11\/freshworks-shares-drop-despite-slightly-better-than-expected-revenue-and-outlook\/","title":{"rendered":"Freshworks shares drop despite slightly better-than-expected revenue and outlook"},"content":{"rendered":"

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Shares of\u00a0Freshworks Inc.<\/a> dropped in\u00a0after-hours trading today despite the customer service and support software firm reporting slightly better-than-expected revenue and outlook in its latest earnings report.<\/p>\n

For the quarter ended Dec. 31, Freshworks reported a loss before costs such as stock compensation of six cents per share, up from a loss of one cent per share a year ago. Revenue rose 44%, to $105.5 million.\u00a0The earnings per share loss of six cents fell\u00a0in line<\/a> with analysts\u2019 expectations, while revenue beat\u00a0a predicted<\/a> $100.3 million.<\/p>\n

Net cash flow provided by operating activities in the quarter came in at $44.8 million, down from $13.4 million in the fourth quarter of 2020, while free cash flow was $2.8 million, down from $11.9 million year-over-year.<\/p>\n

Highlights in the quarter included the number of customers contributing more than $5,000 in annual recurring revenue increasing 28% year-over-year, to 14,814. The company\u2019s net dollar retention rate was 114%, down from 117% in the third quarter but up from 111% in the fourth quarter of 2020.<\/p>\n

Freshworks\u2019 new customers in the quarter included the British Museum, Databricks Inc., Humanscale Corp., Jollyroom, KaDeWe, Nation Safe Drivers, StyleSeat Inc. and Wheel Pros LLC.<\/p>\n

For the full year 2021, Freshworks reported an adjusted loss of 21 cents per share, compared with a loss of 12 cents per share in 2020. Revenue for the year rose 49%, to $371 million.<\/p>\n

\u201cWe had a strong finish to the year as we surpassed $100 million in quarterly revenue and achieved 44% year-over-year growth in the fourth quarter,\u201d Girish Mathrubootham (pictured), founder and chief executive of Freshworks, said in a statement<\/a>.<\/p>\n

Looking forward, Freshworks predicts an adjusted loss of five to seven cents per share in the first quarter on revenue of $107 million to $109 million. For the full year 2022, Freshworks forecasts an adjusted loss per share of 19 to 23 cents on revenue of $486.5 million to $495 million. The revenue outlook for the quarter and full-year were both just ahead of analyst predictions<\/a>.<\/p>\n

Shares in Freshworks dropped as much as 13% after the bell before recovering to be fall more than 6%.<\/p>\n

Photo:\u00a0Girish Mathrubootham\/Twitter<\/a><\/h5>\n
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