Freshworks Inc. Files Q2 2024 10-Q

TL;DR

Freshworks Q2 10-Q filed. Financials look steady.

AI Summary

Freshworks Inc. filed its 10-Q for the period ending June 30, 2024. The filing details financial performance and operational updates for the second quarter. Key financial data and share information are presented, reflecting the company's ongoing business activities and financial position.

Why It Matters

This filing provides investors with crucial financial data and insights into Freshworks Inc.'s performance during the second quarter of 2024, impacting investment decisions.

Risk Assessment

Risk Level: low — The filing is a routine quarterly report and does not indicate any immediate or significant new risks.

Key Numbers

• 20240630 — Reporting Period End Date (Indicates the end of the fiscal quarter for which financial information is reported.)
• 20240730 — Filing Date (The date the 10-Q report was officially submitted to the SEC.)

Key Players & Entities

• Freshworks Inc. (company) — Filer of the 10-Q report
• 20240630 (date) — End of the reporting period
• 20240730 (date) — Date of filing
• FreshDesk Inc. (company) — Former company name

FAQ

Key Financial Figures

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

Filing Documents

• frsh-20240630.htm (10-Q) — 1503KB
• ex311q22410-q.htm (EX-31.1) — 10KB
• ex312q22410-q.htm (EX-31.2) — 10KB
• ex321q22410-q.htm (EX-32.1) — 6KB
• ex322q22410-q.htm (EX-32.2) — 5KB
• 0001544522-24-000047.txt ( ) — 8530KB
• frsh-20240630.xsd (EX-101.SCH) — 50KB
• frsh-20240630_cal.xml (EX-101.CAL) — 99KB
• frsh-20240630_def.xml (EX-101.DEF) — 338KB
• frsh-20240630_lab.xml (EX-101.LAB) — 699KB
• frsh-20240630_pre.xml (EX-101.PRE) — 545KB
• frsh-20240630_htm.xml (XML) — 1347KB

FINANCIAL INFORMATION

PART I. FINANCIAL INFORMATION

Financial Statements (unaudited)

ITEM 1. Financial Statements (unaudited) 4 Condensed Consolidated Balance Sheets as of June 30, 2024 and December 31, 2023 4 Condensed Consolidated Statements of Operations for the Three and Six Months Ended June 30, 2024 and 2023 5 Condensed Consolidated Statements of Comprehensive Loss for the Three and Six Months Ended June 30, 2024 and 2023 6 Condensed Consolidated Statements of Stockholders' Equity for the Three and Six Months Ended June 30, 2024 and 2023 7 Condensed Consolidated Statements of Cash Flows for the Six Months Ended June 30, 2024 and 2023 9 Notes to Condensed Consolidated Financial Statements 10

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 28

Quantitative and Qualitative Disclosures about Market Risk

ITEM 3. Quantitative and Qualitative Disclosures about Market Risk 42

Controls and Procedures

ITEM 4. Controls and Procedures 42

OTHER INFORMATION

PART II. OTHER INFORMATION

Legal Proceedings

ITEM 1. Legal Proceedings 44

Risk Factors

ITEM 1A. Risk Factors 44

Unregistered Sales of Equity Securities and Use of Proceeds

ITEM 2. Unregistered Sales of Equity Securities and Use of Proceeds 44

Defaults Upon Senior Securities

ITEM 3. Defaults Upon Senior Securities 44

Mine Safety Disclosures

ITEM 4. Mine Safety Disclosures 44

Other Information

ITEM 5. Other Information 44

Exhibits

ITEM 6. Exhibits 46

SIGNATURES

SIGNATURES 47 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; our ability to succe

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) June 30, 2024 December 31, 2023 Assets Current assets: Cash and cash equivalents $ 310,266 $ 488,121 Marketable securities 708,848 699,506 Accounts receivable, net of allowance of $ 7,869 and $ 8,562 100,866 97,179 Deferred contract acquisition costs 24,528 22,908 Prepaid expenses and other current assets 52,482 47,832 Total current assets 1,196,990 1,355,546 Property and equipment, net 23,445 22,747 Operating lease right-of-use assets 32,698 32,749 Deferred contract acquisition costs, noncurrent 21,508 19,764 Intangible assets, net 98,024 — Goodwill 147,014 6,181 Deferred tax assets 9,515 10,013 Other assets 14,390 9,772 Total assets $ 1,543,584 $ 1,456,772 Liabilities and Stockholders' Equity Current liabilities: Accounts payable $ 9,771 $ 3,485 Accrued liabilities 69,246 56,608 Deferred revenue 287,629 266,399 Income tax payable 1,038 722 Total current liabilities 367,684 327,214 Operating lease liabilities, non-current 27,681 26,795 Other liabilities 33,120 30,501 Total liabilities 428,485 384,510 Commitments and contingencies (Note 9) 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; 221,884,474 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; 79,076,950 and 87,754,921 shares issued and outstanding 1 1 Additional paid-in capital 4,800,143 4,713,522 Accumulated other comprehensive loss ( 1,029 ) ( 754 ) Accumulated deficit ( 3,684,018 ) ( 3,640,509 ) Total stockholders' equity 1,115,099 1,072,262 Total liabilities and stockholders' equity $ 1,543,584 $ 1,456,772 The accompanying notes are an integral pa

View Full Filing

View this 10-Q filing on SEC EDGAR