Cloud Stocks: Freshworks Looks To Freshchat For Product Portfolio Expansion

Photo Credit: Gerd Altmann from Pixabay

San Mateo-based Freshworks (Nasdaq: FRSH) continues to grow rapidly as it expands its CRM offerings. The company remains focused on product innovation and continues to offer integrations to drive its product adoption.

Freshworks’s Financials

For the second quarter, Freshworks’ revenues grew 40% to $121.4 million. Net loss was $0.06 per share.

Among key metrics, the number of customers contributing more than $5,000 in ARR grew 25% to 16,212. The net dollar retention rate was 115%, compared to 115% in the previous quarter, and 118% a year ago.  Some of the new customers added during the year included names like Angi Home Services, Cloudera, Dynatrace, Sterling Bank, Thomas Cook, and World Market.

For the third quarter, Freshworks forecast revenues of $124.5-$126.5 million and a loss per share of $0.07-$0.05. It expects revenues of $493-$497 million and a loss per share of $0.18-$0.16 for the current fiscal year. The market forecast revenues of $125.48 million and a loss of $0.05 per share for the quarter and revenues of $494.85 million with a loss of $0.17 per share for the year.

Freshworks’s Product Expansion

Recently, Freshworks announced an integration with Injixo that allows customers to leverage an all-in-one workforce management system to drive productivity with features including accurate forecasting, staffing, and impact-driven reporting. The integration leverages the power of AI to accurately forecast future workload, build shift schedules that are optimized around workload and react quickly and effectively. As a result, employees are engaged in the planning process through their smartphones, allowing them to view, bid for, and swap shifts in addition to requesting time off.

Last quarter, it also added integrations for Instagram and Google Business Messages, thus enabling conversational messaging across multiple channels. It also built new Freshdesk Omnichannel integrations with telephony providers like Five9 to optimize agent productivity when supporting customers across chat, email, social, and voice seamlessly.

Last quarter, Freshworks brought back its Freshchat brand, previously known as Freshdesk Messaging. Freshchat offers businesses a seamless conversational experience by integrating bot and live agent experiences. With Freshchat, businesses can use bots to automate the transactional first level of support and then hand over the conversation to a human agent for more complex use cases. Freshchat will act as a strong first point of entry into consumer companies for Freshdesk. Freshdesk believes that its users will expand to Freshdesk or Freshmarketer. With the addition of Freshchat, it is now able to sell to the marketing, sales, or support organization first and then expand into the other departments by showcasing the power of unified customer communications.

It is currently trading at $16.37 with a market capitalization of $4.54 billion. It hit a 52-week high of $53.36 in October last year and a 52-week low of $10.51in June.

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Disclosure: All investors should make their own assessments based on their own research, informed interpretations, and risk appetite. This article expresses my own opinions based on my own research ...

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