SaaS unicorn Freshworks' losses grow in Q4; quarterly revenue up by 44%

Software-as-a-Service (SaaS) unicorn, Freshworks' net losses have mounted to $56.4 million in Q4, 2021 as against $3.6 million during the fourth quarter of 2020. The non-GAAP loss (excluding non-cash expenses) rose to $10.7 million for Q4,2021 compared to$ 3.4 million during a year ago period. The Nasdaq listed SaaS company’s stocks have witnessed a steep decline with a 56 per cent share price drop since its IPO in September last year. The tumbling of Freshworks' stocks is being seen as a part of a larger price correction trend in tech share prices seen in the US markets.

Freshworks said in its quarterly earnings report that the total revenues of the company increased by 44 per cent to $105.5 million. In terms of 2022 outlook, Freshworks said that it expects the total revenue for 2022 in the range of $486.5 million - $495 million. The non-GAAP loss is expected to be in the range of $56.5 million-$48.5 million for 2022.

“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. “I’m incredibly proud of our employees for their focus and dedication as we continue to innovate on our products, put customers first, and execute as a public company,” he added.

The software firm said that number of customers contributing more than $5,000 in  annual revenue run was 14,814, an increase of 28 per cent year-over-year. Free cash flow was $2.8 million, compared to $11.9 million in the fourth quarter of 2020. Freshwork’s stock was trading at $22.46 a piece, a 4.38 per cent drop from the previous close