Business software provider Freshworks (NASDAQ: FRSH) will be announcing earnings results this Tuesday afternoon. Here’s what to expect.
Freshworks beat analysts’ revenue expectations last quarter, reporting revenues of $222.7 million, up 14.5% year on year. It was a mixed quarter for the company, with a solid beat of analysts’ EBITDA estimates but full-year EPS guidance missing analysts’ expectations significantly. It added 385 enterprise customers paying more than $5,000 annually to reach a total of 24,762.
Is Freshworks a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, the market is expecting Freshworks’s revenue to grow 13.9% year on year, slowing from the 18.9% increase it recorded in the same quarter last year.
The majority of analysts covering the company have reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Freshworks has a history of exceeding Wall Street’s expectations.
Looking at Freshworks’s peers in the sales and marketing software segment, some have already reported their Q1 results, giving us a hint as to what we can expect. Zeta Global delivered year-on-year revenue growth of 49.9%, beating analysts’ expectations by 7%, and GoDaddy reported revenues up 6.1%, in line with consensus estimates. Zeta Global’s stock price was unchanged after the resultswhile GoDaddy was up 3%.
Read our full analysis of Zeta Global’s results here and GoDaddy’s results here.
There has been positive sentiment among investors in the sales and marketing software segment, with share prices up 8.7% on average over the last month. Freshworks is up 6.5% during the same time and is heading into earnings with an average analyst price target of $12.38 (compared to the current share price of $8.78).
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