Business software provider Freshworks (NASDAQ:FRSH) will be reporting results this Tuesday afternoon. Here’s what investors should know.
Freshworks beat analysts’ revenue expectations by 3% last quarter, reporting revenues of $215.1 million, up 15.3% year on year. It was a strong quarter for the company, with EPS guidance for next quarter exceeding analysts’ expectations and an impressive beat of analysts’ EBITDA estimates. It added 402 enterprise customers paying more than $5,000 annually to reach a total of 24,377.
Is Freshworks a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, analysts are expecting Freshworks’s revenue to grow 12.4% year on year to $218.7 million, slowing from the 21.5% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.11 per share.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Freshworks has a history of exceeding Wall Street’s expectations, beating revenue estimates every single time over the past two years by 2.3% on average.
Looking at Freshworks’s peers in the sales and marketing software segment, only LiveRamp has reported results so far. It met analysts’ revenue estimates, delivering year-on-year sales growth of 8.6%. The stock traded up 3.5% on the results.
Read our full analysis of LiveRamp’s earnings results here.Questions about potential tariffs and corporate tax changes have caused much volatility in 2025. Unfortunately, sales and marketing software stocks have struggled in this environment as share prices are down 18.8% on average over the last month. Freshworks is down 26.4% during the same time and is heading into earnings with an average analyst price target of $17.64 (compared to the current share price of $8.92).
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