Topic: How To Invest

Q: Hi. I am wondering what your thoughts are on Freshworks (FRSH)? Thank you.

Article Excerpt

A: Freshworks Inc., $18.00, symbol FRSH on Nasdaq (Shares outstanding: 191.6 million; Market cap: $5.4 billion;, develops AI-driven SaaS (software-as-a-service) products for IT teams, customer support teams, and sales and marketing teams. As of June 30, 2023, it had 65,600 customers worldwide, including Taylor Made, S&P Global, Honda, Marvel, Databricks and Thomas Cook. The company was founded in August 2010 under the corporate name Freshdesk Inc. Freshdesk was the company’s customer experience product, launched in 2011. Following several more product launches, the company changed its name to Freshworks in June 2017 to reflect its broader software offerings. In September 2021, the company went public, selling 28.5 million shares at $36 each through its IPO. Freshworks offers both free and paid subscription plans for its SaaS products. Its growth strategy continues to add subscribers, either paid from the start, or converted to paid from free plans. With “software as a service” (SaaS), instead of charging customers a one-time fee on the initial sale of…