Freshworks (NASDAQ:FRSH) Releases Earnings Results, Misses Estimates By $0.10 EPS

Freshworks (NASDAQ:FRSH - Get Free Report) announced its quarterly earnings data on Tuesday. The company reported ($0.02) earnings per share for the quarter, missing the consensus estimate of $0.08 by ($0.10), Zacks reports. Freshworks had a negative net margin of 14.80% and a negative return on equity of 8.57%. Freshworks updated its FY 2025 guidance to 0.520-0.540 EPS and its Q1 2025 guidance to 0.120-0.140 EPS.

Freshworks Stock Performance

Shares of NASDAQ FRSH traded down $0.38 during midday trading on Friday, hitting $17.05. 3,844,448 shares of the stock traded hands, compared to its average volume of 3,932,087. The firm has a market capitalization of $5.16 billion, a P/E ratio of -50.15 and a beta of 0.91. Freshworks has a one year low of $10.81 and a one year high of $21.61. The firm has a 50-day moving average of $17.00 and a two-hundred day moving average of $14.13.

Wall Street Analysts Forecast Growth

Several equities research analysts have recently issued reports on FRSH shares. Scotiabank increased their price objective on shares of Freshworks from $17.00 to $19.00 and gave the stock a "sector perform" rating in a research report on Wednesday. JPMorgan Chase & Co. raised their target price on shares of Freshworks from $17.00 to $20.00 and gave the company an "overweight" rating in a research report on Thursday, November 7th. Needham & Company LLC raised their target price on shares of Freshworks from $20.00 to $25.00 and gave the company a "buy" rating in a research note on Wednesday. Piper Sandler increased their price target on Freshworks from $20.00 to $24.00 and gave the company an "overweight" rating in a research note on Wednesday. Finally, Barclays increased their price objective on shares of Freshworks from $14.00 to $20.00 and gave the stock an "equal weight" rating in a research note on Wednesday. One analyst has rated the stock with a sell rating, four have issued a hold rating and ten have assigned a buy rating to the company's stock. According to MarketBeat.com, the company presently has a consensus rating of "Moderate Buy" and a consensus price target of $21.07.

Insider Transactions at Freshworks

In other news, Director Jennifer H. Taylor sold 4,690 shares of Freshworks stock in a transaction that occurred on Tuesday, December 10th. The shares were sold at an average price of $16.74, for a total transaction of $78,510.60. Following the completion of the sale, the director now owns 36,689 shares of the company's stock, valued at approximately $614,173.86. The trade was a 11.33 % decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is accessible through this link. Also, Chairman Rathnagirish Mathrubootham sold 835,000 shares of Freshworks stock in a transaction that occurred on Wednesday, December 18th. The shares were sold at an average price of $16.08, for a total transaction of $13,426,800.00. Following the transaction, the chairman now directly owns 551,137 shares in the company, valued at approximately $8,862,282.96. The trade was a 60.24 % decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders sold 1,727,211 shares of company stock worth $27,224,746 in the last three months. Corporate insiders own 19.15% of the company's stock.

About Freshworks

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.