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Upturn AI SWOT - About
FRSH 
Freshworks Inc (FRSH)
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Upturn Advisory Summary
04/07/2025: FRSH (3-star) is currently NOT-A-BUY. Pass it for now.
Upturn Star Rating
Moderate Performance
These Stocks/ETFs, based on Upturn Advisory, typically align with the market average, offering steady but unremarkable returns.
AI Based Fundamental Rating
Above Average Performance
These Stocks/ETFs, based on Upturn Advisory, frequently surpass the market, reflecting reliable and trustworthy advice.
Analysis of Past Performance
Type Stock | Historic Profit 55.97% | Avg. Invested days 58 | Today’s Advisory PASS |
Upturn Star Rating | Upturn Advisory Performance  4.0 | Stock Returns Performance  3.0 |
| Profits based on simulation | Last Close 04/07/2025 |
Key Highlights
Company Size Mid-Cap Stock | Market Capitalization 3.71B USD | Price to earnings Ratio - | 1Y Target Price 21.41 |
Price to earnings Ratio - | 1Y Target Price 21.41 | ||
Volume (30-day avg) 2972690 | Beta 0.98 | 52 Weeks Range 10.81 - 19.77 | Updated Date 04/7/2025 |
52 Weeks Range 10.81 - 19.77 | Updated Date 04/7/2025 | ||
Dividends yield (FY) - | Basic EPS (TTM) -0.32 |
Analyzing Revenue: Products, Geography and Growth
Revenue by Products
Product revenue - Year on Year
Revenue by Geography
Geography revenue - Year on Year
Earnings Date
Report Date - | When - | Estimate - | Actual - |
Profitability
Profit Margin -13.24% | Operating Margin (TTM) -6.18% |
Management Effectiveness
Return on Assets (TTM) -5.17% | Return on Equity (TTM) -8.63% |
Valuation
Trailing PE - | Forward PE 22.99 | Enterprise Value 2674056541 | Price to Sales(TTM) 5.14 |
Enterprise Value 2674056541 | Price to Sales(TTM) 5.14 | ||
Enterprise Value to Revenue 3.71 | Enterprise Value to EBITDA -26.51 | Shares Outstanding 243010000 | Shares Floating 217428651 |
Shares Outstanding 243010000 | Shares Floating 217428651 | ||
Percent Insiders 7.18 | Percent Institutions 84.8 |
Analyst Ratings
Rating 3.89 | Target Price 18.81 | Buy 4 | Strong Buy 6 |
Buy 4 | Strong Buy 6 | ||
Hold 8 | Sell - | Strong Sell - | |
Strong Sell - |
Upturn AI SWOT
Freshworks Inc
Company Overview
History and Background
Freshworks Inc. was founded in 2010 by Girish Mathrubootham and Shan Krishnasamy in Chennai, India. Initially named Freshdesk, it focused on providing cloud-based customer support solutions. The company has grown through product expansion and strategic acquisitions, achieving unicorn status and going public on the NASDAQ in September 2021.
Core Business Areas
- Customer Service: Offers customer support software (Freshdesk) with features like ticketing, knowledge base, and self-service portals.
- Sales and Marketing: Provides sales CRM and marketing automation tools (Freshsales, Freshmarketer) to manage leads, track deals, and automate marketing campaigns.
- IT Service Management: Offers IT help desk and service management solutions (Freshservice) to streamline IT operations and improve employee productivity.
- HR Management: Provides HR software (FreshTeam) to automate HR tasks and improve employee experience.
Leadership and Structure
Girish Mathrubootham is the CEO. The company has a typical organizational structure with departments for product development, sales, marketing, customer success, and finance, reporting to the executive team.
Top Products and Market Share
Key Offerings
- Freshdesk: Cloud-based customer support software. Competitors include Zendesk, Salesforce Service Cloud, and Zoho Desk. Estimated market share within customer service software is around 3-5% (highly fragmented market). User count is in the tens of thousands of businesses worldwide. Exact revenue from Freshdesk alone is not publicly broken out, but comprises a significant portion of total revenue.
- Freshsales: Sales CRM solution. Competitors include Salesforce Sales Cloud, HubSpot CRM, and Pipedrive. The market share is estimated at around 2-4% (highly fragmented market). User count is significant but not individually disclosed. Exact revenue from Freshsales is not publicly broken out.
- Freshservice: IT service management platform. Competitors include ServiceNow, Atlassian Jira Service Management, and BMC Helix. Estimated market share around 1-3%. User count is significant but not individually disclosed. Exact revenue from Freshservice is not publicly broken out.
Market Dynamics
Industry Overview
The CRM, customer service, and ITSM software industries are experiencing rapid growth, driven by digital transformation and the increasing need for businesses to provide seamless customer and employee experiences. The market is competitive, with many players ranging from large enterprises to niche vendors.
Positioning
Freshworks is positioned as a provider of modern, easy-to-use, and affordable software solutions for businesses of all sizes. Its competitive advantage lies in its intuitive user interface, quick deployment, and attractive pricing compared to competitors like Salesforce and ServiceNow.
Total Addressable Market (TAM)
The combined TAM for CRM, customer service, and ITSM software is estimated to be well over $100 billion. Freshworks is well-positioned to capture a significant portion of this TAM through its expanding product portfolio and focus on mid-market and SMB customers.
Upturn SWOT Analysis
Strengths
- User-friendly interface
- Affordable pricing
- Strong customer support
- Integrated platform
- Rapid product development
Weaknesses
- Lower brand recognition compared to larger competitors
- Limited enterprise-level features compared to established players
- Reliance on cloud infrastructure
- Higher customer churn rates than some competitors
- Smaller ecosystem of integrations compared to competitors
Opportunities
- Expansion into new markets and geographies
- Strategic acquisitions to broaden product portfolio
- Partnerships with complementary technology providers
- Increasing demand for cloud-based software solutions
- Growth in the SMB and mid-market segments
Threats
- Intense competition from larger, well-established players
- Economic downturn impacting IT spending
- Security breaches and data privacy concerns
- Rapid technological advancements requiring continuous innovation
- Changes in customer preferences and expectations
Competitors and Market Share
Key Competitors
- CRM
- NOW
- HUBS
- ZS
Competitive Landscape
Freshworks competes with larger, more established players like Salesforce and ServiceNow. Freshworks' advantages include its user-friendly interface, affordable pricing, and integrated platform. Disadvantages include lower brand recognition and limited enterprise-level features.
Major Acquisitions
AnsweriQ
- Year: 2020
- Acquisition Price (USD millions): 0
- Strategic Rationale: Enhanced AI capabilities within Freshdesk and other products.
Growth Trajectory and Initiatives
Historical Growth: Freshworks has experienced strong revenue growth since its inception, driven by customer acquisition and expansion of its product offerings.
Future Projections: Analysts project continued revenue growth in the coming years, albeit potentially at a slower pace as the company scales. Profitability is expected to improve gradually as Freshworks leverages economies of scale.
Recent Initiatives: Recent strategic initiatives include expanding its product integrations, launching new features, and focusing on specific industry verticals.
Summary
Freshworks is a growing SaaS company with a modern, user-friendly platform and a focus on the mid-market. While revenue growth is strong, the company is still working towards consistent profitability. Competition is fierce, and Freshworks needs to continue innovating and expanding its product portfolio to maintain its competitive edge. A focus on scaling efficiently is needed.
Similar Companies
ADBE
Adobe Systems Incorporated
ADBE
Adobe Systems Incorporated
CRM
Salesforce.com Inc
CRM
Salesforce.com Inc
HUBS
HubSpot Inc
HUBS
HubSpot Inc
MSFT
Microsoft Corporation
MSFT
Microsoft Corporation
NOW
ServiceNow Inc
NOW
ServiceNow Inc
ZS
Zscaler Inc
ZS
Zscaler Inc
Sources and Disclaimers
Data Sources:
- Company SEC filings
- Industry analyst reports
- Market research reports
- Company website
- Third-party financial data providers
Disclaimers:
This analysis is based on publicly available information and represents an opinion. It is not financial advice. Investment decisions should be based on individual research and consultation with a qualified financial advisor.
AI Summarization is directionally correct and might not be accurate.
Summarized information shown could be a few years old and not current.
Fundamental Rating based on AI could be based on old data.
AI-generated summaries may have inaccuracies (hallucinations). Please verify the information before taking action.
About Freshworks Inc
Exchange NASDAQ | Headquaters San Mateo, CA, United States | ||
IPO Launch date 2021-09-22 | CEO, President & Director Mr. Dennis M. Woodside J.D. | ||
Sector Technology | Industry Software - Application | Full time employees 4400 | Website https://www.freshworks.com |
Full time employees 4400 | Website https://www.freshworks.com | ||
Freshworks Inc., a software development company, provides software-as-a-service products in North America, Europe, the Middle East, Africa, Asia Pacific, and internationally. The company's software-as-a-service solutions includes Customer Experience (CX) and Employee Experience (EX). Customer Experience products include Freshdesk, a ticketing and case management solution; Freshdesk Omni, a customer service suite, that businesses need to deliver seamless omnichannel support into a single solution; Freshchat that provides agents with a modern conversational experience to proactively engage customers across digital messaging channels; Freshsales, an advanced and user-friendly sales automation solution; and Freshmarketer, a marketing automation solution for businesses to connect with customers across their preferred channels. Employee Experience products include Freshservice that offers virtual agents to help employees resolve issues, make requests, and answer questions without contacting the service desk; Freshservice for Business Teams, which provides a unified employee service experience while ensuring the secure separation of departmental data; and Device42 which provides IT discovery and dependency mapping solutions. It also provides Freshworks platform, an AI-powered, enterprise-grade foundation for all Freshworks products. The company was formerly known as Freshdesk Inc. and changed its name to Freshworks Inc. in June 2017. Freshworks Inc. was incorporated in 2010 and is headquartered in San Mateo, California.
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