FRESHWORKS ($FRSH): DRIVING AI-POWERED GROWTH IN SaaSFRESHWORKS ( NASDAQ:FRSH ): DRIVING AI-POWERED GROWTH IN SaaS
1/7
Revenue Growth: Freshworks just posted $194.6M in Q4 2024 (+22% YoY), with full-year revenue hitting $ 720M (+21% YoY)! ⚡️
Growth is fueled by new customer wins and the rising AI demand in customer service, sales, and IT solutions.
2/7 – EARNINGS BEAT
• Non-GAAP EPS: $0.14 (beat by $0.04) 💰
• Operating profit for FY2024 doubled to $ 99M from $ 44.5M in 2023 🔥
• FY2025 guidance: Revenue $ 809M–$ 821M (12–14% YoY growth) 🚀
3/7 – CASH FLOW & PROFITABILITY
• Free Cash Flow margin at 21% in Q4—showing major profitability strides 💸
• Shifting from less profitable past to a more robust, scalable business model 🏆
4/7 – SECTOR SNAPSHOT
• Competes with Salesforce, HubSpot, Zendesk in the SaaS arena 🌐
• Enterprise Value to Revenue ratio is on the lower end—could be undervalued given its growth 📈
• Mid-market & SMB focus → niche advantage vs. pricier enterprise solutions
5/7 – RISK FACTORS
• Market Competition: Big fish (Salesforce) + fresh entrants (Zendesk) 🏦
• Customer Acquisition: High marketing costs, must maintain ROI 🤝
• Economic Sensitivity: Downturn = possible budget cuts on software 💼
• Tech Shifts: Rapid AI innovation—no resting on laurels! 🤖
6/7 – SWOT HIGHLIGHTS
Strengths:
• Strong AI-driven revenue growth
• Wide product portfolio (sales, IT, support, etc.)
• Growing customer base & retention ✅
Weaknesses:
• Less profitable historically (though improving)
• Revenue heavily reliant on core products 😬
Opportunities:
• Expand into untapped global markets
• Double down on AI for new revenue streams 🌍
Threats:
• Market saturation & intense competition 🏁
• Data privacy regs could disrupt operations ⚖️
7/7 Freshworks: undervalued gem or just another SaaS player?
1️⃣ Bullish—AI + mid-market niche = unstoppable! 🏅
2️⃣ Neutral—Need more proof of profitability 🤔
3️⃣ Bearish—Competition & economy hold it back 🐻
Vote below! 🗳️👇
Freshworks
FRSHThis is a very pre-mature chart here I'm doing for you @ALYWLAM
I can expect Frshworks to stay bullish in long run. Although we may be witnessing the start of a shakeout on the stock since it's fairly new into the market.
We've seen an instance like AFRM where it dropped in half from open price all the way down to the 40's before forming a cup and handle and exploding to the upside, which I hope happens with FRSH.
Continue to buy up the stock at any given lvl in the 20's or even low 30's iMO.
I'm bullish on the long term existance of this stock.