Freshworks (NASDAQ:FRSH) Updates Q1 2025 Earnings Guidance

Freshworks (NASDAQ:FRSH) updated its first quarter 2025 earnings guidance on Tuesday. The company provided earnings per share guidance of 0.120-0.140 for the period, compared to the consensus earnings per share estimate of 0.120. The company issued revenue guidance of $190.0 million-$193.0 million, compared to the consensus revenue estimate of $192.3 million. Freshworks also updated its FY 2025 guidance to 0.520-0.540 EPS.

Freshworks Stock Performance

Freshworks stock traded down $0.10 during midday trading on Wednesday, reaching $17.76. 3,049,347 shares of the company were exchanged, compared to its average volume of 3,937,527. The firm’s 50-day simple moving average is $16.94 and its 200-day simple moving average is $14.05. Freshworks has a 1 year low of $10.81 and a 1 year high of $21.61. The company has a market capitalization of $5.38 billion, a price-to-earnings ratio of -51.99 and a beta of 0.91.

Freshworks (NASDAQ:FRSH) last issued its quarterly earnings results on Tuesday, February 11th. The company reported ($0.02) EPS for the quarter, missing analysts’ consensus estimates of $0.08 by ($0.10). Freshworks had a negative return on equity of 8.57% and a negative net margin of 14.80%. On average, analysts forecast that Freshworks will post -0.35 EPS for the current fiscal year.

Analyst Ratings Changes

Several research analysts have weighed in on the company. Piper Sandler boosted their price target on Freshworks from $20.00 to $24.00 and gave the company an “overweight” rating in a report on Wednesday. Barclays increased their target price on Freshworks from $14.00 to $20.00 and gave the stock an “equal weight” rating in a research report on Wednesday. Morgan Stanley lifted their price target on Freshworks from $18.00 to $19.00 and gave the company an “equal weight” rating in a report on Monday, January 13th. Cantor Fitzgerald upped their price objective on shares of Freshworks from $18.00 to $22.00 and gave the company an “overweight” rating in a research note on Wednesday. Finally, Canaccord Genuity Group raised their target price on shares of Freshworks from $19.00 to $23.00 and gave the stock a “buy” rating in a research report on Wednesday. One research analyst has rated the stock with a sell rating, five have issued a hold rating and nine have given a buy rating to the company’s stock. Based on data from MarketBeat, the company presently has an average rating of “Moderate Buy” and an average price target of $20.86.

Insider Activity

In other news, Director Zachary Nelson sold 8,433 shares of the company’s stock in a transaction on Thursday, January 2nd. The shares were sold at an average price of $15.85, for a total value of $133,663.05. Following the completion of the transaction, the director now directly owns 24,187 shares in the company, valued at approximately $383,363.95. This represents a 25.85 % decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. Also, insider Mika Yamamoto sold 2,859 shares of Freshworks stock in a transaction on Monday, February 3rd. The stock was sold at an average price of $18.29, for a total transaction of $52,291.11. Following the sale, the insider now directly owns 397,390 shares in the company, valued at $7,268,263.10. This trade represents a 0.71 % decrease in their position. The disclosure for this sale can be found here. Over the last quarter, insiders sold 1,727,211 shares of company stock worth $27,224,746. 19.15% of the stock is currently owned by corporate insiders.

Freshworks Company Profile

Freshworks Inc, a software development company, provides software-as-a-service products worldwide. It offers Freshworks Customer Service Suite, which provides automated, personalized self-service on various channels, including web, chat, mobile messaging, email, and social; Freshdesk, a ticketing-centric customer service solution; Freshsuccess, a customer success solution; and Freshchat that provides agents with a modern conversational experience to proactively engage customers across digital messaging channels.