Photo Credit: Gerd Altmann from Pixabay

Recently listed Freshworks (Nasdaq: FRSH) announced its fourth-quarter results that continued to surpass market expectations. Freshworks remains focused on expanding its market share by targeting mid to enterprise-sized organizations. It is addressing their demands by improving its product and partner portfolio.

Freshworks’s Financials

For the fourth quarter, Freshworks’ revenues grew 30% to $133.2 million, surpassing market estimates of $132.52 billion. Net income was $0.01 per share, ahead of the market estimate of a loss of $0.04.

For the full fiscal year, revenues grew 37% to $498 million and loss was $0.07 per share.

For the first quarter, Freshworks forecast revenues of $133-$135 million and a loss per share of $0.03-$0.01. The market forecast revenues of $136.25 million and a loss of $0.02 per share. It expects revenues of $575-$590 million and an EPS of ($0.01)-$0.03 for the current fiscal year. Analysts expect revenues of $588.87 million and a loss of $0.06 per share.

Freshworks’s Meta Partnership

Recently, Freshworks announced its partnership with Meta (META) to help businesses elevate their conversational customer experience through messaging apps like WhatsApp, Instagram Messaging, and Facebook Messenger to deliver intelligent and personalized messages at scale. According to a recent Forrester report, 68% of the customers studied select to make a purchase with a business that has a more convenient communication capability. Freshworks is hoping to address this trend through the integration.

The Meta Business Messaging integrations with Freshworks’ CX and CRM products facilitate customer and prospect engagement for support, sales, and marketing teams. Businesses are able to use Freshworks AI-powered bots to tailor and automate messaging journeys for each channel, configure workflows across multiple channels or languages, and efficiently train bots with NLP learning capabilities. The Freshworks Neo platform and its native integrations with several communication channels will allow businesses to configure the channels as they expand and grow without needing expensive custom development, IT deployments or support.

Freshworks is focusing on growth by following four key objectives. First, it remains focused on product innovation through its partnerships and new services. Second, it is investing effort on larger customers. For the last quarter, nearly 60% of its business came from mid-market and larger companies. During the quarter, customers spending more than $50,000 in ARR grew 35% over the year and accounted for 44% of its business. The third business driver is expansion within existing customers by agent additions, cross-selling services, and upgrading into larger deployments. And finally, it is focused on operating efficiency and has generated positive cash flow and improved its non-GAAP operating margin during the fourth quarter.

It is currently trading at $15.34 with a market capitalization of $4.41 billion. It hit a 52-week high of $21.26 in March last year and a 52-week low of $10.51 in June last year.

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