Software company Freshworks reported GAAP (loss) from operations of $47.1 million in the quarter ended March 31, 2022, against $1.7 million in the same quarter of 2021. Revenue was at $114.6 million, a growth of 42 per cent compared to 2021.

Non-GAAP (loss) from operations was $0.6 million in Q1 CY22, the same as in the corresponding quarter of 2021.

Tyler Sloat, CFO, Freshworks, told analysts that the non-GAAP numbers exclude the impact of stock-based compensation and related expenses, payroll taxes on employee stock transactions, amortisation of acquired intangibles, and other adjustments. He stressed that non-GAAP numbers were a better reflection of the company’s performance.

The number of customers contributing over $5,000 in annual revenue run rate (ARR) was 15,639, an increase of 27 per cent year-on-year. Some new customers to the Freshworks community include California Credit Union, Kuka, Marymount Manhattan College, Sodexo, Ticket Network and Thermo Fisher.

‘Strong start’

CEO Girish Mathrubootham said in a release, “We’re off to a strong start to the year with Q1 revenue growth of 42 per cent year-on-year. We made progress on our 2022 product priorities with the launch of Freshworks CRM for e-commerce, while increasing net dollar retention to 115 per cent, and continuing to run our business efficiently.”

For the next quarter, the company expects revenue to be $117.0–119.0 million, non-GAAP loss from operations of $18.5–16.5 million, and non-GAAP net loss per share of $0.08–0.06

For the full year 2022, the company expects revenue of $495.5–501.5 million; non-GAAP loss from operations of $43.5–37.5 million and non-GAAP net loss per share of $0.18–0.16, the release said.

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