Freshworks Inc. Files 10-Q for Period Ending March 31, 2024

TL;DR

<b>Freshworks Inc. filed its Q1 2024 10-Q report on May 1, 2024, detailing financial performance for the quarter ending March 31, 2024.</b>

AI Summary

Freshworks Inc. (FRSH) filed a Quarterly Report (10-Q) with the SEC on May 1, 2024. Freshworks Inc. reported its Q1 2024 results on May 1, 2024. The filing covers the period from January 1, 2024, to March 31, 2024. The company's fiscal year ends on December 31. Freshworks Inc. was formerly known as FreshDesk Inc. The company is incorporated in Delaware.

Why It Matters

For investors and stakeholders tracking Freshworks Inc., this filing contains several important signals. This filing provides investors with the latest financial data for Freshworks Inc., crucial for assessing its performance and making investment decisions. Understanding the quarterly results helps in tracking the company's growth trajectory and operational efficiency in the competitive software services market.

Risk Assessment

Risk Level: — Freshworks Inc. shows moderate risk based on this filing. The filing is a standard quarterly report (10-Q) and does not contain immediate, significant financial distress indicators or major strategic shifts that would elevate the risk level.

Analyst Insight

Monitor future filings for revenue growth trends and profitability improvements in the subscription services segment.

Revenue Breakdown

Key Numbers

• 2024-03-31 — Reporting Period End Date (Quarterly report)
• 2024-05-01 — Filing Date (10-Q filing)
• 2024-01-01 — Reporting Period Start Date (Quarterly report)

Key Players & Entities

• Freshworks Inc. (company) — Filer and subject of the report
• FreshDesk Inc. (company) — Former name of Freshworks Inc.
• 2024-03-31 (date) — End of the reporting period
• 2024-05-01 (date) — Filing date
• 2024-01-01 (date) — Start of the reporting period

FAQ

Industry Context

Freshworks operates in the software-as-a-service (SaaS) industry, providing customer engagement and IT service management solutions.

Regulatory Implications

As a publicly traded company, Freshworks Inc. is subject to SEC regulations and reporting requirements, including the timely filing of quarterly (10-Q) and annual (10-K) reports.

What Investors Should Do

1. Review the full 10-Q filing for detailed financial statements and management discussion.
2. Analyze revenue breakdown by segment (Subscription vs. Professional Services) for Q1 2024.
3. Compare Q1 2024 performance against Q1 2023 to identify year-over-year trends.

Key Dates

• 2024-03-31: Quarter End — End of the reporting period for the 10-Q filing.
• 2024-05-01: Filing Date — Date the 10-Q report was officially submitted to the SEC.

Year-Over-Year Comparison

This is the initial filing for the period ending March 31, 2024, and thus, direct comparison to a prior filing of the same type is not applicable within this data extract.

Key Financial Figures

• $0.00001 — stered Class A common stock, par value $0.00001 per share FRSH The Nasdaq Stock Market

Filing Documents

• frsh-20240331.htm (10-Q) — 1094KB
• ex101freshworks-2024cashin.htm (EX-10.1) — 42KB
• ex102non-employeedirectorc.htm (EX-10.2) — 7KB
• ex311q12410-q.htm (EX-31.1) — 10KB
• ex312q12410-q.htm (EX-31.2) — 10KB
• ex321q12410-q.htm (EX-32.1) — 6KB
• ex322q12410-q.htm (EX-32.2) — 5KB
• 0001544522-24-000034.txt (&nbsp;) — 6759KB
• frsh-20240331.xsd (EX-101.SCH) — 41KB
• frsh-20240331_cal.xml (EX-101.CAL) — 79KB
• frsh-20240331_def.xml (EX-101.DEF) — 250KB
• frsh-20240331_lab.xml (EX-101.LAB) — 597KB
• frsh-20240331_pre.xml (EX-101.PRE) — 433KB
• frsh-20240331_htm.xml (XML) — 1011KB

FINANCIAL INFORMATION

PART I. FINANCIAL INFORMATION

Financial Statements (unaudited)

ITEM 1. Financial Statements (unaudited) 4 Condensed Consolidated Balance Sheets as of March 31, 2024 and December 31, 2023 4 Condensed Consolidated Statements of Operations for the Three Months Ended March 31, 2024 and 2023 5 Condensed Consolidated Statements of Comprehensive Loss for the Three Months Ended March 31, 2024 and 2023 6 Condensed Consolidated Statements of Stockholders' Equity for the Three Months Ended March 31, 2024 and 2023 7 Condensed Consolidated Statements of Cash Flows for the Three Months Ended March 31, 2024 and 2023 8 Notes to Condensed Consolidated Financial Statements 9

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

ITEM 2. Management's Discussion and Analysis of Financial Condition and Results of Operations 24

Quantitative and Qualitative Disclosures about Market Risk

ITEM 3. Quantitative and Qualitative Disclosures about Market Risk 35

Controls and Procedures

ITEM 4. Controls and Procedures 36

OTHER INFORMATION

PART II. OTHER INFORMATION

Legal Proceedings

ITEM 1. Legal Proceedings 38

Risk Factors

ITEM 1A. Risk Factors 38

Unregistered Sales of Equity Securities and Use of Proceeds

ITEM 2. Unregistered Sales of Equity Securities and Use of Proceeds 38

Defaults Upon Senior Securities

ITEM 3. Defaults Upon Senior Securities 38

Mine Safety Disclosures

ITEM 4. Mine Safety Disclosures 38

Other Information

ITEM 5. Other Information 38

Exhibits

ITEM 6. Exhibits 40

SIGNATURES

SIGNATURES 41 1 SPECIAL NOTE ABOUT FORWARD-LOOKING STATEMENTS This Quarterly Report on Form 10-Q 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 Quarterly Report on Form 10-Q, 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 macro

FINANCIAL INFORMATION

PART I. FINANCIAL INFORMATION

FINANCIAL STATEMENTS (UNAUDITED)

ITEM 1. FINANCIAL STATEMENTS (UNAUDITED) FRESHWORKS INC. CONDENSED CONSOLIDATED BALANCE SHEETS (in thousands, except share and per share amounts) (unaudited) March 31, 2024 December 31, 2023 Assets Current assets: Cash and cash equivalents $ 468,017 $ 488,121 Marketable securities 739,309 699,506 Accounts receivable, net of allowance of $ 7,546 and $ 8,562 84,324 97,179 Deferred contract acquisition costs 23,297 22,908 Prepaid expenses and other current assets 52,162 47,832 Total current assets 1,367,109 1,355,546 Property and equipment, net 22,307 22,747 Operating lease right-of-use assets 30,500 32,749 Deferred contract acquisition costs, noncurrent 19,795 19,764 Goodwill 6,181 6,181 Deferred tax assets 9,508 10,013 Other assets 12,046 9,772 Total assets $ 1,467,446 $ 1,456,772 Liabilities and Stockholders' Equity Current liabilities: Accounts payable $ 1,517 $ 3,485 Accrued liabilities 58,164 56,608 Deferred revenue 275,907 266,399 Income tax payable 716 722 Total current liabilities 336,304 327,214 Operating lease liabilities, non-current 24,595 26,795 Other liabilities 28,416 30,501 Total liabilities 389,315 384,510 Commitments and contingencies (Note 7) Stockholders' equity: Preferred stock, $ 0.00001 par value per share; 10,000,000 shares authorized; zero shares issued and outstanding — — Class A common stock, $ 0.00001 par value per share; 1,000,000,000 shares authorized; 219,360,432 and 208,940,016 shares issued and outstanding 2 2 Class B common stock, $ 0.00001 par value per share; 350,000,000 shares authorized; 79,139,776 and 87,754,921 shares issued and outstanding 1 1 Additional paid-in capital 4,743,236 4,713,522 Accumulated other comprehensive loss ( 1,274 ) ( 754 ) Accumulated deficit ( 3,663,834 ) ( 3,640,509 ) Total stockholders' equity 1,078,131 1,072,262 Total liabilities and stockholders' equity $ 1,467,446 $ 1,456,772 The accompanying notes are an integral part of these condensed consolidated f

View Full Filing

View this 10-Q filing on SEC EDGAR