FRESHWORKS ($FRSH): DRIVING AI-POWERED GROWTH IN SaaSFRESHWORKS ( NASDAQ:FRSH ): DRIVING AI-POWERED GROWTH IN SaaS
1/7
Revenue Growth: Freshworks just posted $194.6M in Q4 2024 (+22% YoY), with full-year revenue hitting $ 720M (+21% YoY)! ⚡️
Growth is fueled by new customer wins and the rising AI demand in customer service, sales, and IT solutions.
2/7 – EARNINGS BEAT
• Non-GAAP EPS: $0.14 (beat by $0.04) 💰
• Operating profit for FY2024 doubled to $ 99M from $ 44.5M in 2023 🔥
• FY2025 guidance: Revenue $ 809M–$ 821M (12–14% YoY growth) 🚀
3/7 – CASH FLOW & PROFITABILITY
• Free Cash Flow margin at 21% in Q4—showing major profitability strides 💸
• Shifting from less profitable past to a more robust, scalable business model 🏆
4/7 – SECTOR SNAPSHOT
• Competes with Salesforce, HubSpot, Zendesk in the SaaS arena 🌐
• Enterprise Value to Revenue ratio is on the lower end—could be undervalued given its growth 📈
• Mid-market & SMB focus → niche advantage vs. pricier enterprise solutions
5/7 – RISK FACTORS
• Market Competition: Big fish (Salesforce) + fresh entrants (Zendesk) 🏦
• Customer Acquisition: High marketing costs, must maintain ROI 🤝
• Economic Sensitivity: Downturn = possible budget cuts on software 💼
• Tech Shifts: Rapid AI innovation—no resting on laurels! 🤖
6/7 – SWOT HIGHLIGHTS
Strengths:
• Strong AI-driven revenue growth
• Wide product portfolio (sales, IT, support, etc.)
• Growing customer base & retention ✅
Weaknesses:
• Less profitable historically (though improving)
• Revenue heavily reliant on core products 😬
Opportunities:
• Expand into untapped global markets
• Double down on AI for new revenue streams 🌍
Threats:
• Market saturation & intense competition 🏁
• Data privacy regs could disrupt operations ⚖️
7/7 Freshworks: undervalued gem or just another SaaS player?
1️⃣ Bullish—AI + mid-market niche = unstoppable! 🏅
2️⃣ Neutral—Need more proof of profitability 🤔
3️⃣ Bearish—Competition & economy hold it back 🐻
Vote below! 🗳️👇
FRSH
Freshworks possible BUY ideaFreshworks, ticker FRSH, is looking good for buying at the moment. This IT services and customer resource management software company, reported it's first operating profit quarter since becoming a publicly traded company. It competes with giants such as Salesforce(CRM) and ServiceNow(NOW)
What to consider?
1. Stock has already jumped from the smaller Cup and Handle formation on December 13th, and its upward move was great, with increase in buying volume and price rise. It went from $21.17 to $24.15, closing above its 52 week high on Friday, December 15th.
2. I will be looking for the stock to make some price pullback for me to enter it. Best price I will be looking, for entering, will be on 50% Fibonacci retracement line, sitting at around $22.48-$22.5 price level. I love adding to a position or entering one on that Fib level.
3. If I am to enter on that level, my stop loss will be around 78.6% Fib level, which is sitting at $20.88 price level, which is a good price level, a deep stop loss level, since it is some 13-15% away from the current stock price. So, this basically means that I would like to give some breathing room for this stock.
This will be my scenario A.
Scenario B, is the one which is happening at the moment. We are having a bigger Cup but without the Handle, which was broken on Friday. If we check the depth of the Cup and try to catch the entire depth of the cup, we could see the price rising to some $30ish levels. Which will be just above the previous resistance line, sitting at $29.7-8 price level.
Surely, there will be couple of good opportunities with this stock. Will keep you all updated!
FRSHThis is a very pre-mature chart here I'm doing for you @ALYWLAM
I can expect Frshworks to stay bullish in long run. Although we may be witnessing the start of a shakeout on the stock since it's fairly new into the market.
We've seen an instance like AFRM where it dropped in half from open price all the way down to the 40's before forming a cup and handle and exploding to the upside, which I hope happens with FRSH.
Continue to buy up the stock at any given lvl in the 20's or even low 30's iMO.
I'm bullish on the long term existance of this stock.
FRSH - Flag formation Long from $6.23 up-to $11.93FRSH came in of our fallen angel scan on March 30th, at $4.50. It rallied all the way to $6, consolidated & now braking out new territory today. We also like it as long as it is not following the market (Low Beta) & it has strong bullish pattern.
To play this we would also look at August $5.00 Calls (currently $1.54)
* Trade Criteria *
Date first found- April 11, 2017
Pattern/Why- Fallen angel(Broken) ; Flag formation (Forming)
Entry Target Criteria- Break of $6.23
Exit Target Criteria- 1st Target- $9.37, 2nd Target- $11.93
Stop Loss Criteria- $5.43
Option - Would look at August $5.00 Calls (currently $1.54)
Please check back for Trade updates. (Note: Trade update is little delayed here.)