Important note

This AI stock analysis for Freshworks is not up to date. Creating and accessing our AI stock Analysis (powered by our data and Chat GPT) is only available for our premium users. Sign up to get access today!

Freshworks - AI Stock Analysis

Analysis generated August 20, 2025

Freshworks Inc. is a software company that provides innovative customer engagement solutions. The company offers a suite of products including Freshdesk, for customer support, Freshservice, an IT service desk solution, and various CRM and sales-focused tools. Freshworks is headquartered in San Mateo, California, and its software is used by businesses of all sizes across the globe to improve their customer interactions and internal processes.

Fundamental Analysis

The revenue for the last quarter was $205 million. This marks a 4.28% increase from the previous quarter, showcasing steady growth. When compared to the same quarter last year, there's a notable growth of 17.54%, suggesting a strong year-over-year increase.

Net income for the last quarter was $1.7 million, a significant concern as this represents a 33.36% decrease compared to the previous quarter. However, there is a bright spot when examining the year-over-year data, which shows a 91.38% increase, indicating that despite recent quarterly struggles, the company has made substantial improvements over the past year.

EBITDA for the last quarter was $8.7 million, which is up 16.90% compared to the previous quarter, signaling a healthy improvement in earnings. On a year-over-year basis, EBITDA has increased by an impressive 79.13%, demonstrating robust operational performance over time.

It's important to note that there have been a few company insiders selling their stock recently, potentially signaling a bearish outlook from those who might have better insights about the company's future.

Technical Analysis

Today's stock price is $13.11, which represents a 10.33% decrease from a month ago, a short-term concern for potential investors. However, compared to a year ago, the stock price has increased by 9.25%, reflecting a positive long-term trend.

The trend appears to be bullish. The current 10-day Simple Moving Average (SMA10) is $13.01, which is higher than the previous SMA10 of $12.96. This indicates an upward trend in price movement. Additionally, the Relative Strength Index (RSI) is at 37.3, which indicates a neutral condition, neither overbought nor oversold.

Alternative Data Analysis

Starting with job postings and employee sentiment, Freshworks currently has 241 open positions, up by 24% in the last couple of months. This indicates that the company is looking to grow and expand, a potentially healthy sign. However, the business outlook among employees remains neutral.

When it comes to customer acquisition, Freshworks has an estimated 1.7 million visitors to their webpage, up by 11% in the last couple of months. This is a bullish trend as it suggests a potential increase in customers. However, there is a significant concern with mobile app engagement as there are no app downloads recently, down by 100%, indicating a potential loss in customer interest through this channel.

Customer engagement on social media shows stagnant growth. Freshworks has 23,000 followers on Instagram and 19,000 followers on Twitter, with no meaningful increase or decrease recently. Additionally, AltIndex's AI score, which predicts a company's stock price based on various data points, gives Freshworks a score of 56, signaling a hold recommendation.

Conclusion

Freshworks has shown strong year-over-year revenue and EBITDA growth, indicating healthy overall financial performance. However, the recent decline in quarterly net income and the short-term dip in stock price are concerns. Insider selling is another potential red flag. Despite the recent stagnation in app downloads, the increase in job postings and webpage visitors suggest potential growth.

Given these data points, consider a hold recommendation for Freshworks stock. Monitoring future earnings reports and insider activities will be key to making a more informed decision in the future.

Disclaimer: This AI stock analysis, generated by an experimental AI tool, is for informational purposes only and not financial advice. Information is based on publicly available data and may not always be accurate or current.