Freshworks Narrows Loss To $95 Mn In 2024, Revenue Up 21% - Related to narrows, results, hit, cr, revenue
Freshworks Narrows Loss To $95 Mn In 2024, Revenue Up 21%
For the full calendar year 2024, Freshworks reported a net loss of $[website] Mn, down 31% from $[website] Mn in 2023.
Its operating revenue jumped 22% YoY to $[website] Mn during the quarter under review.
The SaaS major narrowed its net loss by 22% YoY and 27% QoQ to $[website] Mn in Q4 2024.
Nasdaq-listed homegrown SaaS firm Freshworks managed to narrow its consolidated net loss by 22% to $[website] Mn in the fourth quarter of the calendar year 2024 (Q4 CY24) from $[website] Mn in the year-ago period on the back of robust growth in its revenue.
On a quarter-on-quarter basis, net loss declined 27% from $[website] Mn.
The AI service software provider saw its total revenue jump 22% to $[website] Mn during the quarter under review from $[website] Mn in Q4 2023. Sequentially, total income grew 4% from $[website] Mn.
For the full calendar year 2024, Freshworks reported a net loss of $[website] Mn, down 31% from $[website] Mn in the previous year. Total revenue zoomed 21% to $[website] Mn in 2024 as compared to $[website] Mn in 2023.
In a post-earnings call, Freshworks CEO and president Dennis Woodside attributed the growth to the corporation’s investments in its employee experience (EX) business, which helped drive market momentum.
Several mid-market and enterprise clients are turning to Freshworks, moving away from larger IT players due to concerns about overcharging in the mid-market segment, Woodside introduced.
Freshworks added 2,600 end-people in Q4 CY24 — the highest quarterly increase in the last four years — including the likes of New Balance, New Balance, Rawlings Sporting Goods, Sophos, Onfido, and Mesa Airlines among others.
In its Q4 CY24 earnings release, the firm stated the number of consumers contributing over $5K in annual recurring revenue (ARR) increased by 11% year-on-year to 22,558 during the quarter.
More than 60% of Freshworks’ ARR comes from mid-market and enterprise consumers, which the firm defines as organisations with 250 or more employees, the firm revealed in an investor presentation.
Freshworks’ bread and butter customer experience business clocked an annual recurring revenue of $360 Mn in 2024, while its employee experience business surpassed $400 Mn in ARR.
The SaaS giant has lowered its revenue guidance for 2026, citing current market conditions. It expects the revenue growth guidance for CY25 to be in the range of 12-14%, which pegs its revenue between $809 Mn and $821 Mn.
Freshworks CEO Woodside had previously stated that the organization was targeting a revenue of $1 Bn by 2026.
Founded in 2010 by Girish Mathrubootham and Shanmugam Krishnasamy, Freshworks provides a customer relationship management platform, primarily targeting small and medium businesses.
It also offers a comprehensive suite of employee experience solutions, which includes IT service management and enterprise service management, along with customer experience solutions such as customer service, sales, and marketing products.
Freshworks has been undergoing internal restructuring and management changes over the last few months. In May 2024, Mathrubootham unveiled his resignation as the business’s CEO.
During Q4 CY24, the business appointed Srinivasan Raghavan as its chief product officer and Venkitesh Subramanian as senior vice president of product management.
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Delhivery’s consolidated net profit zoomed 114% to INR [website] Cr in Q3 FY25 from INR [website] Cr in the year-ago quarter on the back of strong growth in i......
Honasa Shares Hit All-Time Low Ahead Of Q3 Results
While Awfis’ shares have delivered a negative return of [website] over the last month at the current market price, it has lost [website] over the last year.
However, recovering from its losses, the stock was trading [website] higher at INR [website] at 12:46 PM.
Today’s stock dip was in continuation of its last 5 trading sessions ending in the red.
Shares of Mamaearth parent Honasa Consumer slumped [website] to record an all-time low of INR [website] on the BSE today (February 12).
This also marks a fresh 52-week low figure for the stock, ahead of its third-quarter financial results.
Today’s stock dip was in continuation of its last 5 trading sessions ending in the red. However, recovering from its losses, the stock was trading [website] higher at INR [website] at 12:46 PM.
At this time, the enterprise’s market capitalisation declined to INR 6,[website] Cr with more than [website] Lakh trade volume.
The stock has performed badly in the short and long-term periods. While Awfis’ shares have delivered a negative return of [website] over the last month at the current market price, it has lost [website] over the last year.
It is pertinent to note that the conference call in respect of the unaudited financial results of the business for Q3 FY25 is scheduled for today at 05:30 PM.
In its Q2 FY25 result, Honasa slipped into the red, posting a consolidated net loss of INR [website] Cr. The firm had reported a net profit of INR [website] Cr in the year-ago quarter and INR [website] Cr in the preceding June quarter.
Its top line also took a hit as revenue from operations declined nearly 7% to INR [website] Cr during the quarter under review from INR [website] Cr in Q2 FY24.
The firm has been doubling down on its workforce through ESOPs and executive-level appointments. It has allotted 45,663 stock options under its employee stock option plan (ESOP).
in the recent past, it appointed Lokesh Chhaparwal as Senior Vice President – Technology and Engineering. However, its Chief Business Officer (CBO) resigned before this appointment.
Looking at Honasa’s broader trajectory, the enterprise has faced challenges over the past year, struggling with offline distribution and losing its unicorn status. lately, Emkay Research downgraded Honasa to a ‘sell’ rating from ‘buy’ and assigned a price target (PT) of INR 300.
Of the 12 analysts covering the stock, 4 had a ‘sell’ rating, while 6 recommended a ‘buy’ as of December 2024.
Despite these challenges, ICICI Prudential has increased its stake in the organization to [website] in the quarter ending December, up from [website] in the September quarter.
Data from a poll conducted by MIT Technology Review Insights in 2024 implies growing momentum for this dynamic duo: 38% of executives polled say that......
Honasa’s Q3 Profit Flat At INR 26 Cr
The D2C business claimed that its flagship product, Mamaearth, grew in market share and household penetration during the quarter, reaching [website] Lakh FMCG retail outlets in India as of December 2024 and recorded a 22% YoY increase in its distribution.
Despite the slight increase in PAT, the enterprise's EBITDA declined 24% YoY to INR 26 Cr.
Honasa Consumer reported a consolidated net profit of INR [website] Cr in Q3 FY25, a [website] increase from INR [website] Cr in the year ago quarter.
Mamaearth parent Honasa Consumer reported a consolidated net profit of INR [website] Cr in the third quarter of fiscal year 2024-25 (Q3 FY25), a marginal [website] increase from INR [website] Cr in the year-ago quarter.
Sequentially, the business recovered from an INR [website] Cr loss. While EBITDA declined 24% YoY to INR 26 Cr, EBITDA margin also contracted to 5% from [website] in Q3 FY24.
Despite the slide in EBITDA, the corporation indicates to be back on a “growth trajectory” with a “gradual” scale up in general trend.
Meanwhile, the top line saw a healthy upsurge in the quarter. Honasa’s revenue from operations grew 6% to INR [website] Cr during the year under review from INR [website] Cr in Q3 FY24. On a quarter on quarter (QoQ) basis, it rose 12% from INR [website] Cr.
However, its underlying volume growth (UVG) stood at [website] YoY for the quarter, a fourth of its revenue growth. The firm attributed this to a channel-mix impact due to a transition in its general trade.
The mentioned transition pertains to inventory correction under ‘Project Neev’, which Honasa started implementing in Q2 FY25. Under this, the firm discontinued distribution of its products to distributors in its super stockist layer and some of its direct distributors and replaced them with higher quality or Tier-I distributors to service retailers across top 50 cities.
At the end of the December quarter, the corporation stated it has completed the appointment of the stated Tier-I distributors. In its investor presentation, the corporation informed that these Tier-I distributors are mature FMCG/ BPC players.
As a result, the enterprise’s distributor channel now comprises 69% direct distributors and 31% super stockists. At the end of FY24, super stockists comprised 62% super stockists and 38% direct distributors.
“Consequent to the transition, sales return of INR [website] Cr has been approved for with resulting inventory/ right to return asset of INR [website] Cr (net provisions of INR [website] Cr) in the quarter ended September 30, 2024. As at December 31, 2024, the holding firm has outstanding provision for sales return of INR [website] Cr with resulting right to return asset of INR [website] Cr (net provision of INR [website] Cr),” Honasa presented.
Project Neev not only hit the business’s bottom line in Q2 FY25 but also led to a war of words between it and the All India Consumer Products Distributors Federation (AICPDF) in November.
Back then, the AICPDF flagged large unsold inventory of Honasa lying with distributors and retailers. This, it claimed, was causing a financial burden of INR 300 Cr. It also expressed that besides the issue of “unsold stocks nearing expiry”, credit notes of about INR 50 Cr were unsettled, which was creating cash flow challenges and threatened the stability of the entire distribution network. However, Honasa denied the allegations then.
In its earnings statement today, Honasa cofounder and CEO Varun Alagh mentioned, “In Q3 FY25, we remained committed to long-term growth, advancing the strategic implementation of Project Neev to strengthen our offline distribution through direct distributors in the top 50 cities… As we scale, our vision remains centered on driving disruptive innovation, deepening offline penetration, and delivering unique value propositions to consumers.”.
The D2C business claimed that its flagship product, Mamaearth, grew in market share and household penetration during the quarter, reaching [website] Lakh FMCG retail outlets in India as of December 2024 and recorded a 22% YoY increase in its distribution. It also claimed that Mamaearth’s facewash gained 114 basis points (bps) and shampoo gained 20 bps in YoY value market share during the quarter.
Besides Mamaearth, Honasa has The Derma Co., Aqualogica, BBlunt, BBLunt Salone and Dr. Sheth’s in its portfolio. The enterprise showcased that the other brands “saw continued growth momentum with 30%+ YTD YoY growth”.
In Q1 FY25, Honasa’s board approved the amalgamation of two of its wholly owned subsidiaries – Just4Kids Services Private Limited and Fusion Cosmecutics Private Limited – with itself.
In its Q3 disclosure, the corporation informed that the amalgamation received the first motion approval by NCLT Delhi and NCLT Chandigarh and is awaiting response on its second motion application.
Honasa Consumer spent INR [website] Cr in Q3 FY24, up 9% YoY and [website] QoQ.
Purchase Of Traded Goods: Expenses under this bucket rose [website] YoY to INR [website] Cr in Q3 F25. Sequentially, these expenses came down 22% from INR [website] Cr. While the firm saw an increase of INR 45 Cr in its inventories of traded goods in the previous quarter, the same decreased by INR [website] Cr in Q3 FY25.
Employee Benefit Expenses: Employee costs rose 17% YoY to INR [website] Cr during the quarter under review. This included a reversal of share based payment of INR [website] Cr which the corporation mentioned were reversed from the promoters of Momspresso’s ESOP expenses.
For context, the promoters of the amputated subsidiary resigned from their employment with Honasa before fulfilling the vesting conditions of the corporation’s ESOP pool in FY24.
Ad Expenses: Mamaearth’s parent spent INR 177 Cr to promote itself during the quarter, a [website] increase from INR 166 Cr in the year-ago quarter.
Ahead of the release of the Q3 results, shares of Honasa ended today’s trading session [website] higher at INR [website] on the BSE. During the intraday trading, the corporation’s shares touched a fresh 52-week low of INR [website].
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Market Impact Analysis
Market Growth Trend
| 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 |
|---|---|---|---|---|---|---|
| 12.0% | 14.4% | 15.2% | 16.8% | 17.8% | 18.3% | 18.5% |
Quarterly Growth Rate
| Q1 2024 | Q2 2024 | Q3 2024 | Q4 2024 |
|---|---|---|---|
| 16.8% | 17.5% | 18.2% | 18.5% |
Market Segments and Growth Drivers
| Segment | Market Share | Growth Rate |
|---|---|---|
| Digital Transformation | 31% | 22.5% |
| IoT Solutions | 24% | 19.8% |
| Blockchain | 13% | 24.9% |
| AR/VR Applications | 18% | 29.5% |
| Other Innovations | 14% | 15.7% |
Technology Maturity Curve
Different technologies within the ecosystem are at varying stages of maturity:
Competitive Landscape Analysis
| Company | Market Share |
|---|---|
| Amazon Web Services | 16.3% |
| Microsoft Azure | 14.7% |
| Google Cloud | 9.8% |
| IBM Digital | 8.5% |
| Salesforce | 7.9% |
Future Outlook and Predictions
The Honasa Freshworks Narrows landscape is evolving rapidly, driven by technological advancements, changing threat vectors, and shifting business requirements. Based on current trends and expert analyses, we can anticipate several significant developments across different time horizons:
Year-by-Year Technology Evolution
Based on current trajectory and expert analyses, we can project the following development timeline:
Technology Maturity Curve
Different technologies within the ecosystem are at varying stages of maturity, influencing adoption timelines and investment priorities:
Innovation Trigger
- Generative AI for specialized domains
- Blockchain for supply chain verification
Peak of Inflated Expectations
- Digital twins for business processes
- Quantum-resistant cryptography
Trough of Disillusionment
- Consumer AR/VR applications
- General-purpose blockchain
Slope of Enlightenment
- AI-driven analytics
- Edge computing
Plateau of Productivity
- Cloud infrastructure
- Mobile applications
Technology Evolution Timeline
- Technology adoption accelerating across industries
- digital transformation initiatives becoming mainstream
- Significant transformation of business processes through advanced technologies
- new digital business models emerging
- Fundamental shifts in how technology integrates with business and society
- emergence of new technology paradigms
Expert Perspectives
Leading experts in the digital innovation sector provide diverse perspectives on how the landscape will evolve over the coming years:
"Technology transformation will continue to accelerate, creating both challenges and opportunities."
— Industry Expert
"Organizations must balance innovation with practical implementation to achieve meaningful results."
— Technology Analyst
"The most successful adopters will focus on business outcomes rather than technology for its own sake."
— Research Director
Areas of Expert Consensus
- Acceleration of Innovation: The pace of technological evolution will continue to increase
- Practical Integration: Focus will shift from proof-of-concept to operational deployment
- Human-Technology Partnership: Most effective implementations will optimize human-machine collaboration
- Regulatory Influence: Regulatory frameworks will increasingly shape technology development
Short-Term Outlook (1-2 Years)
In the immediate future, organizations will focus on implementing and optimizing currently available technologies to address pressing digital innovation challenges:
- Technology adoption accelerating across industries
- digital transformation initiatives becoming mainstream
These developments will be characterized by incremental improvements to existing frameworks rather than revolutionary changes, with emphasis on practical deployment and measurable outcomes.
Mid-Term Outlook (3-5 Years)
As technologies mature and organizations adapt, more substantial transformations will emerge in how security is approached and implemented:
- Significant transformation of business processes through advanced technologies
- new digital business models emerging
This period will see significant changes in security architecture and operational models, with increasing automation and integration between previously siloed security functions. Organizations will shift from reactive to proactive security postures.
Long-Term Outlook (5+ Years)
Looking further ahead, more fundamental shifts will reshape how cybersecurity is conceptualized and implemented across digital ecosystems:
- Fundamental shifts in how technology integrates with business and society
- emergence of new technology paradigms
These long-term developments will likely require significant technical breakthroughs, new regulatory frameworks, and evolution in how organizations approach security as a fundamental business function rather than a technical discipline.
Key Risk Factors and Uncertainties
Several critical factors could significantly impact the trajectory of digital innovation evolution:
Organizations should monitor these factors closely and develop contingency strategies to mitigate potential negative impacts on technology implementation timelines.
Alternative Future Scenarios
The evolution of technology can follow different paths depending on various factors including regulatory developments, investment trends, technological breakthroughs, and market adoption. We analyze three potential scenarios:
Optimistic Scenario
Rapid adoption of advanced technologies with significant business impact
Key Drivers: Supportive regulatory environment, significant research breakthroughs, strong market incentives, and rapid user adoption.
Probability: 25-30%
Base Case Scenario
Measured implementation with incremental improvements
Key Drivers: Balanced regulatory approach, steady technological progress, and selective implementation based on clear ROI.
Probability: 50-60%
Conservative Scenario
Technical and organizational barriers limiting effective adoption
Key Drivers: Restrictive regulations, technical limitations, implementation challenges, and risk-averse organizational cultures.
Probability: 15-20%
Scenario Comparison Matrix
| Factor | Optimistic | Base Case | Conservative |
|---|---|---|---|
| Implementation Timeline | Accelerated | Steady | Delayed |
| Market Adoption | Widespread | Selective | Limited |
| Technology Evolution | Rapid | Progressive | Incremental |
| Regulatory Environment | Supportive | Balanced | Restrictive |
| Business Impact | Transformative | Significant | Modest |
Transformational Impact
Technology becoming increasingly embedded in all aspects of business operations. This evolution will necessitate significant changes in organizational structures, talent development, and strategic planning processes.
The convergence of multiple technological trends—including artificial intelligence, quantum computing, and ubiquitous connectivity—will create both unprecedented security challenges and innovative defensive capabilities.
Implementation Challenges
Technical complexity and organizational readiness remain key challenges. Organizations will need to develop comprehensive change management strategies to successfully navigate these transitions.
Regulatory uncertainty, particularly around emerging technologies like AI in security applications, will require flexible security architectures that can adapt to evolving compliance requirements.
Key Innovations to Watch
Artificial intelligence, distributed systems, and automation technologies leading innovation. Organizations should monitor these developments closely to maintain competitive advantages and effective security postures.
Strategic investments in research partnerships, technology pilots, and talent development will position forward-thinking organizations to leverage these innovations early in their development cycle.
Technical Glossary
Key technical terms and definitions to help understand the technologies discussed in this article.
Understanding the following technical concepts is essential for grasping the full implications of the security threats and defensive measures discussed in this article. These definitions provide context for both technical and non-technical readers.
SaaS intermediate
fintech intermediate
platform intermediate
RPA intermediate
API beginner
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