Nasdaq listed SaaS major Freshworks has reported a consolidated net loss of $107.4 Mn for the quarter ended September, the company said in its first earnings announcement after going public in September.
During the same period last year, the Chennai-based SaaS giant had reported net profit of $13.87 Mn. Enterprise tech service providers witnessed a sharp pick up in demand during the corresponding quarter of 2020 amid the pandemic, which increased the demand for enterprise tech services.
Freshworks registered a 46% rise in its revenue to $96.6 Mn, from $66.2 Mn during the third quarter (July-September) of 2020.
The losses came on the back of a massive 305% rise in expenses to $214.63 Mn during the period under review. The expenditure includes research and development ($57.08 Mn), sales and marketing ($96.78 Mn) and general and administrative ($60.76 Mn)
“Our strong third quarter results reflect the continued adoption of our modern and easy-to-use products by companies of all sizes,” said Girish Mathrubootham, CEO and founder of Freshworks.
“We grew 46% year over year, and saw healthy expansion activity from our customer base,” he added.
In its statement, Freshworks said that the number of customers contributing more than $5,000 in its annual recurring revenue (ARR) was 14,079, with a 31% YoY increase. The company defines ARR as the sum total of the revenue it would contractually expect to recognise over the next 12 months from all customers at a point in time, assuming no increase, reduction or cancellation in their subscriptions.
During the quarter, Freshworks brought onboard new customers, including Double Diamond Resorts, ForgeRock, Hunter College NY, Lucidworks, Phillips, Scotch and Soda, Smashburger, Toyota Connected India, Watsons.
The company projects its fourth-quarter revenue to be in the range of $99 Mn – $101 Mn. Further, it expects the total revenue for the full year 2021 to be $364.5 Mn – $366.5 Mn.
It also said that as of September 30, 2021, cash, cash equivalents, and restricted cash and marketable securities amounted to $1.3 Bn.
In September, the homegrown customer engagement company witnessed a stellar stock market debut in the US, and its early investors made a fortune. Post the bumper listing, the Salesforce rival said that over 500 shareholding employees in India have become crorepatis following the listing. Globally, Freshworks has around 4,300 employees.
Its market capitalisation is currently over $14 Bn. On Tuesday, its shares closed at $50.07 per share, higher by 3.88% from its previous close.
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