Freshworks Inc. Files 2023 Annual Report on Form 10-K

TL;DR

<b>Freshworks Inc. has filed its 2023 annual report (10-K), detailing its financial performance and corporate information.</b>

AI Summary

Freshworks Inc. (FRSH) filed a Annual Report (10-K) with the SEC on February 16, 2024. Freshworks Inc. filed its 2023 Form 10-K on February 16, 2024, reporting on the fiscal year ending December 31, 2023. The company's principal executive offices are located at 2950 S. Delaware St., Suite 201, San Mateo, CA 94403. Freshworks Inc. was formerly known as FreshDesk Inc., with a name change date of March 12, 2012. The filing covers the fiscal years 2023, 2022, and 2021, with financial data presented in USD. The company is incorporated in Delaware (DE).

Why It Matters

For investors and stakeholders tracking Freshworks Inc., this filing contains several important signals. This 10-K filing provides a comprehensive overview of Freshworks' financial health, operational performance, and strategic direction for the fiscal year 2023, which is crucial for investors to assess the company's current standing and future prospects. The detailed financial statements and risk factors outlined in the report are essential for stakeholders to understand the company's financial position, potential risks, and compliance with SEC regulations.

Risk Assessment

Risk Level: medium — Freshworks Inc. shows moderate risk based on this filing. The filing is a standard 10-K, which is a comprehensive annual report. While it contains detailed financial information, it does not inherently signal immediate positive or negative developments beyond the typical disclosure of a company's performance and risks.

Analyst Insight

Review the detailed financial statements and risk factors within the 10-K to understand Freshworks' performance and potential challenges in the past fiscal year.

Key Numbers

• 2023-12-31 — Fiscal Year End (Reporting period)
• 2024-02-16 — Filing Date (Date the 10-K was filed)
• 2023 — Reporting Year (Primary year covered by the report)
• 2022 — Prior Year (Comparative year)
• 2021 — Prior Year (Comparative year)

Key Players & Entities

• Freshworks Inc. (company) — Filer name
• FreshDesk Inc. (company) — Former company name
• 2950 S. Delaware St., Suite 201, San Mateo, CA 94403 (location) — Business and mailing address
• DE (location) — State of incorporation
• 2023-12-31 (date) — Fiscal year end
• 2024-02-16 (date) — Filing date

FAQ

Key Dates

• 2024-02-16: 10-K Filing — Annual report filed with the SEC for the fiscal year ended December 31, 2023.
• 2023-12-31: Fiscal Year End — The end date of the reporting period for the 2023 10-K.

Key Financial Figures

• $0.00001 — stered Class A common stock, par value $0.00001 per share FRSH The Nasdaq Stock Market
• $17.58 — billion, based on the closing price of $17.58 per share for the registrant's Class A
• $596.4 m — ions have scaled. Our total revenue was $596.4 million, $498.0 million and $371.0 millio
• $498.0 million — . Our total revenue was $596.4 million, $498.0 million and $371.0 million in the years ended D
• $371.0 million — was $596.4 million, $498.0 million and $371.0 million in the years ended December 31, 2023, 2

Filing Documents

• frsh-20231231.htm (10-K) — 2131KB
• ex109offerlettertomikayama.htm (EX-10.9) — 73KB
• ex21110-k.htm (EX-21.1) — 6KB
• ex231auditconsent10-k.htm (EX-23.1) — 2KB
• ex311q42310-k.htm (EX-31.1) — 10KB
• ex312q42310-k.htm (EX-31.2) — 10KB
• ex321q42310-k.htm (EX-32.1) — 6KB
• ex322q42310-k.htm (EX-32.2) — 5KB
• ex97incentivecompensationc.htm (EX-97) — 37KB
• frsh-20231231_g1.jpg (GRAPHIC) — 37KB
• frsh-20231231_g2.jpg (GRAPHIC) — 49KB
• image_0.jpg (GRAPHIC) — 14KB
• 0001544522-24-000012.txt (&nbsp;) — 10558KB
• frsh-20231231.xsd (EX-101.SCH) — 53KB
• frsh-20231231_cal.xml (EX-101.CAL) — 111KB
• frsh-20231231_def.xml (EX-101.DEF) — 338KB
• frsh-20231231_lab.xml (EX-101.LAB) — 876KB
• frsh-20231231_pre.xml (EX-101.PRE) — 598KB
• frsh-20231231_htm.xml (XML) — 1485KB

Business

Business 4 Item 1A.

Risk Factors

Risk Factors 12 Item 1B. Unresolved Staff Comments 46 Item 1C. Cybersecurity 47 Item 2.

Properties

Properties 48 Item 3.

Legal Proceedings

Legal Proceedings 48 Item 4. Mine Safety Disclosures 48 PART II 49 Item 5. Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities 49 Item 6. [Reserved] 50 Item 7.

Management's Discussion and Analysis of Financial Condition and Results of Operations

Management's Discussion and Analysis of Financial Condition and Results of Operations 50 Item 7A.

Quantitative and Qualitative Disclosures About Market Risk

Quantitative and Qualitative Disclosures About Market Risk 66 Item 8.

Financial Statements and Supplementary Data

Financial Statements and Supplementary Data 68 Item 9. Changes In and Disagreements With Accountants on Accounting and Financial Disclosure 103 Item 9A.

Controls and Procedures

Controls and Procedures 103 Item 9B. Other Information 104 I tem 9C. Disclosure Regarding Foreign Jurisdictions that Prevent Inspection 104 PART III 105 Item 10. Directors, Executive Officers and Corporate Governance 105 Item 11.

Executive Compensation

Executive Compensation 105 Item 12.

Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters

Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters 105 Item 13. Certain Relationships and Related Transactions and Director Independence 105 Item 14. Principal Accountant Fees and Services 105 PART IV 106 Item 15. Exhibits and Financial Statement Schedules 106 Item 16. Form 10-K Summary 108

Signatures

Signatures 109 1 Table of Contents SPECIAL NOTE ABOUT FORWARD-LOOKING STATEMENTS This Annual Report on Form 10-K contains forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended (Exchange Act), about us and our industry that involve substantial risks and uncertainties. All statements other than statements of historical facts contained in this report, including statements regarding our future results of operations and financial condition, business strategy, and plans and objectives of management for future operations, are forward-looking statements. In some cases, forward-looking statements may be identified by words such as "anticipate," "believe," "contemplate," "continue," "could," "estimate," "expect," "intend," "may," "plan," "potential," "predict," "project," "should," "target," "will," or "would," or the negative of these words or other similar terms or expressions. These forward-looking statements include, but are not limited to, statements concerning the following: our expectations regarding our annual recurring revenue (ARR), revenue, expenses, and other operating results; our ability to acquire new customers and successfully retain existing customers; our ability to increase the number of users who access our platform; our ability to increase usage of existing products; our ability to effectively manage our growth; our ability to achieve or sustain profitability; future investments in our business, our anticipated capital expenditures, and our estimates regarding our capital requirements; the costs and success of our sales and marketing efforts, and our ability to maintain and enhance our brand; the estimated addressable market opportunity for existing products and new products; our reliance on key personnel and our ability to identify, recruit, and retain skilled personnel; our ability to effectively manage our growth, including any international expansion; the effects of macroeco

Business

Item 1. Business Overview Our mission is to make it fast and easy for businesses to delight their customers and employees. We deliver modern and innovative AI-guided customer and employee service solutions that enable companies of all sizes to drive delightful engagement and increase productivity. We started with Freshdesk, our customer service (CS) product, and later expanded our offering to include Freshservice, our IT and employee service management (ITSM) product. Next, we introduced Freshsales and Freshmarketer, our sales force and marketing automation solutions, and Freshchat, our messaging/chat product offering. Currently, more than 67,100 businesses use our software to make engaging customers and employees more efficient and enjoyable. Our enterprise-grade platform and products deliver the modern functionality and capabilities businesses need, while being intuitive and easy to use, rapid to onboard, agile, and affordable for organizations of all sizes. We build intelligence and automation into our products wherever possible to accelerate user productivity and allow them to quickly meet the increasing demands of their customers and employees. By accelerating time to value, increasing productivity, and lowering costs, we provide businesses with a concrete return on their investment in Freshworks. With an increased ability to delight customers and employees, businesses also benefit from improved retention, higher net promoter scores (NPS), and better business outcomes. Businesses from approximately 170 countries around the world use Freshworks products to delight their customers and employees every day. As of December 31, 2023, over 50% of our annual recurring revenue (ARR) was from customers with more than 250 employees. We provide products across multiple markets in order to address the needs of businesses of all sizes that need to digitally transform to delight their customers and employees. Our business has grown rapidly in recent periods as our custo

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View this 10-K filing on SEC EDGAR