Freshworks (NASDAQ:FRSH) Updates Q3 Earnings Guidance

Freshworks (NASDAQ:FRSH) issued an update on its third quarter earnings guidance on Tuesday morning. The company provided earnings per share guidance of $0.07 to $0.08 for the period, compared to the consensus earnings per share estimate of $0.08. The company issued revenue guidance of $180.0 million to $183.0 million, compared to the consensus revenue estimate of $178.67 million. Freshworks also updated its FY 2024 guidance to 0.320-0.340 EPS.

Freshworks Price Performance

Shares of NASDAQ:FRSH traded down $0.03 during trading on Tuesday, hitting $13.28. 4,937,020 shares of the company’s stock were exchanged, compared to its average volume of 2,628,720. Freshworks has a 52-week low of $11.90 and a 52-week high of $24.98. The business’s 50-day simple moving average is $12.87 and its 200 day simple moving average is $16.73. The company has a market cap of $3.97 billion, a price-to-earnings ratio of -33.20 and a beta of 0.74.

Freshworks (NASDAQ:FRSH) last released its earnings results on Wednesday, May 1st. The company reported ($0.07) earnings per share (EPS) for the quarter, topping the consensus estimate of ($0.09) by $0.02. The firm had revenue of $165.14 million during the quarter, compared to analysts’ expectations of $163.53 million. Freshworks had a negative return on equity of 10.66% and a negative net margin of 18.93%. On average, sell-side analysts anticipate that Freshworks will post -0.34 EPS for the current fiscal year.

Analysts Set New Price Targets

FRSH has been the subject of several research analyst reports. JMP Securities cut their price target on Freshworks from $29.00 to $21.00 and set a market outperform rating for the company in a report on Thursday, May 2nd. StockNews.com cut Freshworks from a buy rating to a hold rating in a report on Saturday, June 22nd. Canaccord Genuity Group cut their price target on Freshworks from $20.00 to $17.00 and set a buy rating for the company in a report on Wednesday, July 10th. Robert W. Baird cut Freshworks from an outperform rating to a neutral rating and cut their price target for the company from $28.00 to $16.00 in a report on Thursday, May 2nd. Finally, Piper Sandler cut their price target on Freshworks from $22.00 to $17.00 and set an overweight rating for the company in a report on Friday, July 12th. Eight equities research analysts have rated the stock with a hold rating and ten have issued a buy rating to the company’s stock. Based on data from MarketBeat.com, the stock has a consensus rating of Moderate Buy and a consensus target price of $21.53.

Insider Buying and Selling

In related news, Director Barry L. Padgett sold 5,546 shares of the firm’s stock in a transaction that occurred on Monday, July 1st. The stock was sold at an average price of $12.77, for a total transaction of $70,822.42. Following the completion of the sale, the director now directly owns 26,957 shares of the company’s stock, valued at approximately $344,240.89. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available through this hyperlink. In related news, Director Barry L. Padgett sold 5,546 shares of the firm’s stock in a transaction that occurred on Monday, July 1st. The stock was sold at an average price of $12.77, for a total transaction of $70,822.42. Following the completion of the sale, the director now directly owns 26,957 shares of the company’s stock, valued at approximately $344,240.89. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available through this hyperlink. Also, Director Zachary Nelson sold 8,442 shares of Freshworks stock in a transaction on Monday, June 3rd. The shares were sold at an average price of $12.75, for a total value of $107,635.50. Following the sale, the director now directly owns 16,535 shares of the company’s stock, valued at $210,821.25. The disclosure for this sale can be found here. In the last three months, insiders sold 34,296 shares of company stock valued at $443,630. 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.