Earnings To Watch: Freshworks (FRSH) Reports Q2 Results Tomorrow

Business software provider Freshworks (NASDAQ: FRSH) will be reporting earnings this Tuesday afternoon. Here’s what you need to know.

Freshworks beat analysts’ revenue expectations by 2.1% last quarter, reporting revenues of $196.3 million, up 18.9% year on year. It was a strong quarter for the company, with accelerating growth in large customers and an impressive beat of analysts’ EBITDA estimates. It added 717 enterprise customers paying more than $5,000 annually to reach a total of 23,275.

Is Freshworks a buy or sell going into earnings? Read our full analysis here, it’s free.

This quarter, analysts are expecting Freshworks’s revenue to grow 14.2% year on year to $198.9 million, slowing from the 20% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.12 per share.

Freshworks Total Revenue

The majority of analysts covering the company have reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Freshworks has only missed Wall Street’s revenue estimates once over the last two years, exceeding top-line expectations by 1.8% on average.

Looking at Freshworks’s peers in the sales and marketing software segment, only VeriSign has reported results so far. It met analysts’ revenue estimates, delivering year-on-year sales growth of 5.9%. The stock traded up 6.5% on the results.

Read our full analysis of VeriSign’s earnings results here.

There has been positive sentiment among investors in the sales and marketing software segment, with share prices up 2.7% on average over the last month. Freshworks is down 4.6% during the same time and is heading into earnings with an average analyst price target of $20.42 (compared to the current share price of $14.23).

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