
Freshworks (FRSH) Stock Forecast & Price Target
Freshworks (FRSH) Analyst Ratings
Bulls say
Freshworks Inc. demonstrated robust financial performance with an operating cash flow of $41.4 million, reflecting a margin of 21.3%, an increase of approximately $10.5 million year-over-year and a margin expansion of 200 basis points. The company's revenue increased by 21.5% year-over-year, driven by strong demand in experience (EX) and artificial intelligence (AI) services, alongside stability in customer experience (CX) and small to medium-sized business (SMB) segments. Additionally, calculated billings grew by 23%, and gross margins expanded to 86.3%, indicating a healthy financial trajectory supported by effective product offerings and market strategies.
Bears say
Freshworks Inc reported a free cash flow of $34.4 million, reflecting a marginal decline in margin to 17.7%, down from 17.9% year-over-year, indicating potential challenges in maintaining profitability. The company's net revenue retention (NRR) decreased to 103% from 107% in the prior quarter, while year-over-year growth rates in annual recurring revenue (ARR) showed signs of slowdown, particularly in customer experience (CX) solutions, which grew 6%, down from stronger previous growth. Furthermore, the management's expectation of a further deceleration to 104% in NRR for the upcoming quarter amidst competitive pricing pressure raises concerns about the sustainability of growth and profitability in the longer term.
This aggregate rating is based on analysts' research of Freshworks and is not a guaranteed prediction by Public.com or investment advice.
Freshworks (FRSH) Analyst Forecast & Price Prediction
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