
Freshworks (FRSH) Stock Forecast & Price Target
Freshworks (FRSH) Analyst Ratings
Bulls say
Freshworks Inc demonstrated strong financial performance with operating cash flow reaching $41.4 million, reflecting a notable margin of 21.3% and a year-over-year increase of approximately $10.5 million. The company's revenue grew by 21.5% year-over-year, driven by enhancements in employee experience (EX) and artificial intelligence (AI) monetization, while gross margins expanded to 86.3%, exceeding expectations by 130 basis points. Furthermore, calculated billings also showed positive momentum with a 23% increase, underlining the company's robust demand and successful product offerings in the customer support and IT service management sectors.
Bears say
Freshworks Inc reported a free cash flow of $34.4 million with a margin of 17.7%, indicating a slight decline from the previous year's margin of 17.9%. The company experienced a sequential decrease in net revenue retention (NRR) to 103% from 107% in the last quarter, reflecting potential challenges in customer retention and growth amid increasing competitive pricing pressures. Furthermore, there are concerns regarding the durability of growth, especially as expectations suggest a deceleration in NRR to approximately 104% in the first quarter of FY25, compounded by a slowdown in billings and cautious macroeconomic commentary.
This aggregate rating is based on analysts' research of Freshworks and is not a guaranteed prediction by Public.com or investment advice.
Freshworks (FRSH) Analyst Forecast & Price Prediction
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