Freshworks Inc (NASDAQ:FRSH) shares surged as much as 16% in early Wednesday trading after the application-software company raised its full-year forecast.
The company reported Q2 EPS of $0.07, topping the analyst estimate of $0.02. Revenue for the quarter came in at $145.1 million, again higher than the consensus estimate of $141.44M.
“Freshworks is building on the foundations we set at the start of the year to deliver faster product innovation, and improve our efficiency,” said Girish Mathrubootham, CEO and Founder of Freshworks.
“In Q2, we launched new generative AI enhancements across our product lines and outperformed our estimates across all our key financial metrics. I'm excited about the opportunity for companies to take advantage of our software to delight their customers and employees.”
For this quarter, the company sees adjusted EPS of 5 cents on revenue of $149M-$151.5M, beating the consensus for earnings per share of 2 cents on revenue of $149.6M.
For FY, FRSH raised its forecast for adjusted EPS of 20 cents on revenue of $591M from the prior guidance for earnings of 10 cents on revenue of $586.25M. Analysts were looking for EPS of 10 cents on revenue of $586.4M.
Canaccord Genuity analysts upgraded the stock to Buy with a $25 per share price target.
“There was a lot to like in Freshworks’ Q2 print, the second in a row that we’d describe in that light,” the analysts said.
Barclays analysts boosted the price target by $5 to $20 per share on strong execution.
“FRSH is executing on its path to win net new upmarket customers and setting itself up for more profitable growth once macro headwinds begin to ease,” they said.