Business software provider Freshworks (NASDAQ: FRSH) will be reporting results tomorrow after market close. Here's what you need to know.
Last quarter Freshworks reported revenues of $137.7 million, up 20.1% year on year, beating analyst revenue expectations by 2.57%. It was a mixed quarter for the company, with a decent beat of analysts' revenue estimates but decelerating growth in large customers. The company added 719 enterprise customers paying more than $5,000 annually to a total of 18,441.
Is Freshworks buy or sell heading into the earnings? Read our full analysis here, it's free.
This quarter analysts are expecting Freshworks's revenue to grow 16.5% year on year to $141.4 million, slowing down from the 37.5% year-over-year increase in revenue the company had recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.02 per share.
Majority of analysts covering the company have reconfirmed their estimates over the last thirty days, suggesting they are expecting the business to stay the course heading into the earnings. The company has a history of exceeding Wall St's expectations, beating revenue estimates every single time over the past two years on average by 3.95%.
With Freshworks being the first among its peers to report earnings this season, we don't have anywhere else to look at to get a hint at how this quarter will unravel for software stocks, but there has been positive sentiment among investors in the segment, with the stocks up on average 6.56% over the last month. Freshworks is up 1.99% during the same time, and is heading into the earnings with analyst price target of $18.44, compared to share price of $17.96.
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The author has no position in any of the stocks mentioned.