FRSH - Why Freshworks Stock Crashed Today
2024-05-02 19:26:56 ET
Freshworks (NASDAQ: FRSH) stock plummeted in Thursday's trading. The company's share price closed out the daily session down 19.6%, according to data from S&P Global Market Intelligence .
Freshworks released its first-quarter results after the market closed on Wednesday and actually reported sales and earnings for the period that beat Wall Street's expectations. Despite the Q1 performance beats, uninspiring forward guidance and downgrades from analysts prompted investors to sell out of the stock today.
Freshworks posted non-GAAP (adjusted) earnings per share (EPS) of $0.10 on revenue of $165.1 million in the first quarter. Meanwhile, the average analyst estimate had called for the business to post adjusted earnings of $0.08 on revenue of $163.5 million. Sales were up 20% year over year in the quarter, but some investors felt that the software company's customer-service offerings could soon face new pressures.
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Why Freshworks Stock Crashed Today