Business software provider Freshworks (NASDAQ: FRSH) will be reporting earnings this Tuesday after the bell. Here’s what investors should know.
Freshworks beat analysts’ revenue expectations last quarter, reporting revenues of $228.6 million, up 16.5% year on year. It was a strong quarter for the company, with a solid beat of analysts’ adjusted operating income estimates and full-year EPS guidance exceeding analysts’ expectations. It added 326 enterprise customers paying more than $5,000 annually to reach a total of 25,088.
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 14.1% year on year, slowing from the 17.5% increase it recorded in the same quarter last year.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business will 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, only GoDaddy has reported results so far. It met analysts’ revenue estimates, delivering year-on-year sales growth of 6.6%. The stock was down 16.7% on the results.
Read our full analysis of GoDaddy’s earnings results here.There has been positive sentiment among investors in the sales and marketing software segment, with share prices up 2.7% on average over the last month. Freshworks is up 10% during the same time and is heading into earnings with an average analyst price target of $12.77 (compared to the current share price of $11.38).
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