
Freshworks (FRSH) Stock Forecast & Price Target
Freshworks (FRSH) Analyst Ratings
Bulls say
Freshworks Inc reported strong financial metrics, with operating cash flow reaching $41.4 million and a margin of 21.3%, reflecting a year-over-year increase of approximately $10.5 million and a margin expansion of 200 basis points. Revenue growth of 21.5% year-over-year, driven by strong execution in customer experience, artificial intelligence monetization, and stability within small and medium-sized businesses, underscores the company’s competitive positioning. Additionally, gross margins expanded to 86.3%, surpassing estimates by 130 basis points, while calculated billings increased by 23%, indicating robust demand for its solutions across multiple geographic regions.
Bears say
Freshworks Inc reported a decline in free cash flow margin, falling to 17.7% from the previous year's margin of 17.9%, indicating potential challenges in maintaining cash generation efficiency. Additionally, the company's net revenue retention (NRR) decreased sequentially to 103% from 107%, raising concerns about customer retention and overall revenue stability. Furthermore, management anticipates a continued deceleration in annual recurring revenue (ARR) growth, coupled with pronounced pricing pressure in an increasingly competitive market, which may jeopardize the company's profitability moving forward.
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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