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Freshworks Inc’s market cap on Friday tanked to less than $5 billion to $4.84 billion with the stock price of the Chennai/US-based SaaS company reaching a new low of $18.41 at the end of market hours. The stock price was down by 18.03 per cent over the previous day’s closing price of $22.46.
During the intraday trading, the stock price reached a record low of $18.10 before closing at $18.41, says information on the Nasdaq website.
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 - and with a market cap of over $13 billion.
The share price saw a historical high of $50.25 on October 29, 2021. However, in the last few days, the scrip had witnessed a lot of volatility and ended with a record low of $18.41 on Friday.
The company’s CEO Girish Mathrubootham in an interview to a media house said that he does not look at the share price as the markets will go up and down. However, in the long run this will settle down.
In December, analysts attributed the slump in the stock price to the losses reported by the company in the third quarter. There was also selling pressure from new shares that entered the public trading markets. The terms of Freshworks' IPO allowed 58 million shares to open for trading on November 4, ending part of its lock-up period that restricts insiders from selling stock for a time after the IPO, says a report by The Motley Fool Stock Advisor.
This time, the analysts say that the stock of the software services firm fell amid intense sell-offs. The company got caught up in a big pullback for growth-dependent Cloud-software stocks, The Motley Fool said in a report.
Performance
Freshworks 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. The company did not comment on the reasons for the steep increase in net loss.
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).
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