
Freshworks (FRSH) Stock Forecast & Price Target
Freshworks (FRSH) Analyst Ratings
Bulls say
Freshworks Inc has shown a positive trajectory in its financial performance, with annual recurring revenue (ARR) in the EX segment surpassing $480 million and demonstrating a year-over-year constant currency growth rate of 23%. The artificial intelligence ARR has also seen significant growth, doubling year-over-year, driven by strong adoption of the Copilot feature. Additionally, improvements in net revenue retention (NRR) from 104% to 106% and a 14% year-over-year reduction in churn rate further indicate solid customer engagement and the potential for sustained revenue growth.
Bears say
Freshworks Inc faces significant challenges due to intense pricing pressure in a highly competitive market, which could lead to deteriorating profitability if the company cannot sustain its pricing power linked to its innovations. The firm's substantial reliance on the Indian market exposes it to various regulatory and economic uncertainties that could further impact operations, while competition from established players in customer experience (CX), IT service management (ITSM), and customer relationship management (CRM) poses additional risks. Additionally, negative sentiment surrounding potential threats from artificial intelligence to application software may contribute to ongoing volatility in its stock performance, coupled with lower growth estimates for future revenue targets.
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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