FRSHFreshworks Inc. shows mixed signals. While its fundamental financial health is improving with growing revenue and positive EPS surprises, its current valuation metrics are not compelling. Technical indicators suggest a downward trend, but some oscillators indicate potential for a short-term bounce. The thematic landscape for customer and employee experience software remains strong.
Freshworks operates in growing markets for Customer Experience (CX) and Employee Experience (EX) solutions, leveraging AI to enhance its offerings. The demand for integrated, efficient software solutions in these areas provides a positive backdrop.
Freshworks shows improving revenue and consistent EPS beats, indicating operational progress. However, the company is not yet profitable on a GAAP basis, and key valuation metrics like P/E are not applicable or are very high due to current losses. Strong cash reserves offer financial stability.
The stock is currently trading below its key moving averages, indicating a bearish trend. While some short-term oscillators suggest potential for a rebound, the overall technical picture points to downward pressure.
| Factor | Score |
|---|---|
| Customer Experience (CX) Solutions | 85 |
| Employee Experience (EX) Solutions | 80 |
| AI Integration | 70 |
| Competition | 60 |
| Factor | Score |
|---|---|
| Revenue Growth | 75 |
| Profitability | 30 |
| Earnings Surprise | 85 |
| Valuation | 40 |
| Balance Sheet Strength | 80 |
| Factor | Score |
|---|---|
| Price Trend | 30 |
| Momentum | 45 |
| Volume Analysis | 60 |
| Support/Resistance | 50 |
| Moving Average Convergence Divergence (MACD) | 35 |
Consistent EPS Surprises
Freshworks Inc. has consistently exceeded earnings per share (EPS) estimates in recent quarters, with a significant surprise of 340.53% in Q3 2023, indicating strong operational execution and potentially underappreciated profitability.
Improving Revenue Multiple
The Price-to-Sales (PS) ratio has trended downwards from 17.1 in 2021 to 5.4 in 2024, suggesting that investors are paying less for each dollar of revenue, which can be a positive sign for future growth if profitability improves.
Negative Earnings Per Share (EPS)
Freshworks Inc. has consistently reported negative EPS on a trailing twelve-month (TTM) basis (-$0.24), and for the full years 2022 and 2023, indicating the company is currently not profitable on a per-share basis.
High Price-to-Sales (PS) Ratio
Despite a declining trend, the TTM PS ratio of 7.3 remains relatively high, suggesting that the market's valuation of the company's revenue is still elevated compared to many established software companies, potentially indicating overvaluation.
July 2025
30
Next Earnings Date
H: $0.12
A: $0.11
L: $0.10
H: 200.30M
A: 198.85M
L: 197.38M
Freshworks Inc., a software development company, provides software-as-a-service products in North America, Europe, the Middle East, Africa, Asia Pacific, and internationally. The company's software-as-a-service solutions includes Customer Experience (CX) and Employee Experience (EX). Customer Experience products include Freshdesk, a ticketing and case management solution; Freshdesk Omni, a customer service suite, that businesses need to deliver seamless omnichannel support into a single solution; Freshchat that provides agents with a modern conversational experience to proactively engage customers across digital messaging channels; Freshsales, an advanced and user-friendly sales automation solution; and Freshmarketer, a marketing automation solution for businesses to connect with customers across their preferred channels. Employee Experience products include Freshservice that offers virtual agents to help employees resolve issues, make requests, and answer questions without contacting the service desk; Freshservice for Business Teams, which provides a unified employee service experience while ensuring the secure separation of departmental data; and Device42 which provides IT discovery and dependency mapping solutions. It also provides Freshworks platform, an AI-powered, enterprise-grade foundation for all Freshworks products. The company was formerly known as Freshdesk Inc. and changed its name to Freshworks Inc. in June 2017. Freshworks Inc. was incorporated in 2010 and is headquartered in San Mateo, California.
19.69 USD
The 39 analysts offering 1 year price forecasts for FRSH have a max estimate of 27.00 and a min estimate of 12.00.