Sat Nov 09 07:00:00 UTC 2024: ## Freshworks Shares Surge on Strong Q3 Earnings, But Company Announces Layoffs

**SAN FRANCISCO** – Freshworks, the cloud-based software company, saw its shares jump over 28% on Thursday after exceeding third-quarter earnings estimates and announcing a $400 million share buyback program. However, the company also revealed plans to lay off 660 employees, or 13% of its global workforce, to streamline operations.

The company reported adjusted earnings per share of 11 cents, surpassing analyst expectations of 8 cents. Revenue for the quarter reached $186.6 million, exceeding the $181.6 million forecast. This growth was attributed to strong demand for Freshworks’ AI-driven products, such as Freshservice and Freshdesk.

Despite the positive financial results, Freshworks announced a restructuring plan, including staff reductions. The company anticipates incurring restructuring charges of $11 million to $13 million in the fourth quarter. The restructuring is expected to be completed by the end of the fiscal year on December 31.

Freshworks also raised its annual revenue forecast to between $713.6 million and $716.6 million, and increased its adjusted profit per share forecast to 38 cents to 39 cents. The company expects fourth-quarter revenue to range from $187.8 million to $190.8 million.

While the layoffs are a significant move, the company’s positive earnings and optimistic outlook for the future have reassured investors. Freshworks, which competes with industry giants like Salesforce and ServiceNow, continues to expand its customer base, currently serving over 68,000 companies including Databricks, American Express, Nucor, and Sony.

The $400 million share buyback program, while not yet detailed in terms of timeline, demonstrates the company’s confidence in its long-term growth prospects and its commitment to shareholder value.

Read More