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Freshworks Inc, a Chennai/US based software company, reported a net loss of $74 million in the fourth quarter ended December 31, 2021 as against $1.5 million in the same quarter previous year. Total revenue was up 44 per cent to $105.5 million ($73 million).
GAAP (loss) from operations was $56.4 million, compared to $3.4 million in the fourth quarter of 2020, says a company press release. For the full year, the company reported a net loss of $191 million ($57 million). Revenue grew by 49 per cent to $371 million ($250 million). The company said that quarterly revenue surpassed $100 million.
“We had a strong finish to the year as we surpassed $100 million in quarterly revenue and achieved 44 per cent year-over-year growth in the fourth quarter,” said Girish Mathrubootham, CEO and founder of Freshworks in the release.
In the fourth quarter, the number of customers contributing more than $5,000 in ARR was 14,814, an increase of 28 per cent year-over-year. Net dollar retention rate was 114 per cent, compared to 117 per cent in the third quarter of 2021 and 111 per cent in the fourth quarter of 2020.
More customers added
During the fourth quarter, the company added new customers like British Museum, Databricks, Humanscale, Jollyroom, KaDeWe, Nation Safe Drivers, StyleSeat and Wheel Pros, the release said.
For the first quarter 2022, Freshworks expects total revenue of $107-109 million and for 2022 full year revenue of $486.5-495.0 million, the release said. On Thursday, the company’s stock price on the Nasdaq closed at $22.46, down by 4.38 per cent.
On September 22, 2021, Freshworks’ Class A Common Stock got listed on Nasdaq with the opening price of $43.5 – well higher than the set price of the IPO at $36 per share. On the first day, the stock price reached a high of $48.75 before closing at $47.55. The share price saw a historical high of $50.25 on October 29, 2021, according to information on the Nasdaq website.
The company did not reply on the reason for the steep rise in net loss.
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