Independent research on the U.S. markets, Baptista Research

Baptista Research

Independent research on the U.S. markets

Baptista Research is an independent financial research house focused on the U.S. markets. We provide equity research as well as credit research reports on the top-listed U.S. companies with most of our focus on technology, consumer goods and services, automobiles, industrials, oil and gas, pharma, and healthcare. Our research has served more than 3000 institutional investors including mutual funds, hedge funds, banks, family offices, and various buy-side firms. We operate a research subscription service where institutions, as well as retail investors, can have priority access to all our research. We also have a wide distribution of our research reports across some of the top global financial platforms. Apart from equity research and credit research, we also provide advisory services with respect to mergers & acquisitions (M&A), private equity/ venture capital fundraising, valuation reports, and investment management services for corporates.
Baptista Research is owned and managed by Ishan Majumdar, an ex-Venture Capitalist/ Investment Banker, a Chartered Accountant, and a Masters’ degree holder in Management from HEC Paris. Ishan has nearly a decade of experience in Mergers and Acquisitions, Leveraged Buyouts (LBOs), Venture Capital Investing, Corporate Strategy, and Valuation in front-office roles at the likes of BNP Paribas CIB, Credit Agricole CIB, Groupe Danone, and TIW Private Equity. He has worked on and closed multiple acquisition deals, leveraged buyouts, and start-up investment transactions.

Equity Bottom-Up

<ul><li>Freshworks, a provider of cloud-based software solutions, reported its third-quarter 2024 earnings, showcasing strong financial performance and strategic advancements.</li><li>The company exceeded its own forecasts for revenue growth and profitability, highlighted by a 22% increase in revenue year-over-year to $186.6 million.</li><li>Freshworks also doubled its free cash flow from the previous year, reaching $40.1 million with a margin of 21%, demonstrating its operational efficiency and scalability.</li></ul>

Freshworks, a provider of cloud-based software solutions, reported its third-quarter 2024 earnings, showcasing strong financial performance and strategic advancements.The company exceeded its own forecasts for revenue growth and profitability, highlighted by a 22% increase in revenue year-over-year to $186.6 million.Freshworks also doubled its free cash flow from the previous year, reaching $40.1 million with a margin of 21%, demonstrating its operational efficiency and scalability.

Freshworks Inc.: An Integration & Growth of Acquired Assets & Other Major Drivers

<ul><li>Freshworks demonstrated a robust performance in the second quarter of 2024, continuing its trajectory of growth and investment in strategic areas to enhance its offerings, particularly in IT and employee experience solutions.</li><li>The company reported a revenue of $174.1 million for the quarter, marking a year-over-year increase and reflecting a healthy business operation.</li><li>Notably, the business maintained substantial operational discipline, resulting in a free cash flow of $32.8 million, and showed an impressive free cash flow margin of 19%.</li></ul>

Freshworks demonstrated a robust performance in the second quarter of 2024, continuing its trajectory of growth and investment in strategic areas to enhance its offerings, particularly in IT and employee experience solutions.The company reported a revenue of $174.1 million for the quarter, marking a year-over-year increase and reflecting a healthy business operation.Notably, the business maintained substantial operational discipline, resulting in a free cash flow of $32.8 million, and showed an impressive free cash flow margin of 19%.

Freshworks Inc.: How Are They Dealing WIth Challenges in Strategic Acquisitions Integration & Other Risks? - Major Drivers

<ul><li>Freshworks, a prominent software development company, showcased a robust financial performance in the first quarter of 2021, achieving a notable 20% year-over-year revenue growth, bringing its total revenue to $165.1 million.</li><li>This impressive growth was complemented by a strong free cash flow of $38.7 million, reflecting a free cash flow margin of 23%.</li><li>The company's strategic initiatives highlight its dedication to innovation, particularly in artificial intelligence (AI), which has significantly enhanced efficiency and customer satisfaction across its product offerings.</li></ul>

Freshworks, a prominent software development company, showcased a robust financial performance in the first quarter of 2021, achieving a notable 20% year-over-year revenue growth, bringing its total revenue to $165.1 million.This impressive growth was complemented by a strong free cash flow of $38.7 million, reflecting a free cash flow margin of 23%.The company's strategic initiatives highlight its dedication to innovation, particularly in artificial intelligence (AI), which has significantly enhanced efficiency and customer satisfaction across its product offerings.

Freshworks Inc.: Strengthening Market Position Through Strategic Acquisitions! - Major Drivers

Covering IPOs, Healthcare and Technology Stocks

Andrei Zakharov

Algosun Global

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<li>
<a href="https://www.smartkarma.com/entities/freshworks-inc" target="_blank" data-smartkarma-citation="entities:34147:1" rel="noopener">Freshworks (FRSH US)</a>  shares underperformed in 2022, with shares down ~47% YTD versus a 33% loss on the Nasdaq Composite. US software stocks lost ~51% on average over the year. </li>
<li>Insiders keep buying shares. VC firm Accel, a 5%+ shareholder, acquired ~$50 million worth of <a href="https://www.smartkarma.com/entities/freshworks-inc" target="_blank" data-smartkarma-citation="entities:34147:1" rel="noopener">Freshworks (FRSH US)</a>  shares in 2H22. Strong insider buying indicates the stock could hit bottom. </li>
<li>We estimate <a href="https://www.smartkarma.com/entities/freshworks-inc" target="_blank" data-smartkarma-citation="entities:34147:1" rel="noopener">Freshworks (FRSH US)</a>  crossed the $500M ARR mark in 3QCY22. The company may report strong 4QCY22 results and surprise investors and analysts.</li>
</ul>



Freshworks (FRSH US)  shares underperformed in 2022, with shares down ~47% YTD versus a 33% loss on the Nasdaq Composite. US software stocks lost ~51% on average over the year. 
Insiders keep buying shares. VC firm Accel, a 5%+ shareholder, acquired ~$50 million worth of Freshworks (FRSH US)  shares in 2H22. Strong insider buying indicates the stock could hit bottom. 
We estimate Freshworks (FRSH US)  crossed the $500M ARR mark in 3QCY22. The company may report strong 4QCY22 results and surprise investors and analysts.


Freshworks: Insiders Keep Buying Shares. Path To Sustainable FCF Positive Business Looks Clear

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<li>
<a href="https://www.smartkarma.com/entities/freshworks-inc" target="_blank" data-smartkarma-citation="entities:34147:1" rel="noopener">Freshworks (FRSH US)</a>  upgraded its revenue guidance to ~$502M at the top end for FY22 and reported a 42% year-over-year revenue growth rate in 1QFY22. </li>
<li>We were impressed with subscription revenue growth, lower-than-expected loss, customer expansion, and efficient SaaS metrics. </li>
<li>We analyzed multiples of 50 publicly listed software companies with various growth profiles and split SaaS/Fintech companies into four growth groups.</li>
</ul>



Freshworks (FRSH US)  upgraded its revenue guidance to ~$502M at the top end for FY22 and reported a 42% year-over-year revenue growth rate in 1QFY22. 
We were impressed with subscription revenue growth, lower-than-expected loss, customer expansion, and efficient SaaS metrics. 
We analyzed multiples of 50 publicly listed software companies with various growth profiles and split SaaS/Fintech companies into four growth groups.


Freshworks: Solid 1Q and Strong Outlook Despite Delays With Closing Deals in Europe

United States

Freshworks Inc. provides software as a service platform that enables small and medium-sized businesses to support customers through e-mail, phone, website, and social networks. The Company offers multi-product support, a knowledge base, self-service portal, community forums, and tools to leverage mainstream social media for customer support. Freshworks serves customers worldwide.

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Freshworks (FRSH US)

Freshworks Inc.: An Integration & Growth of Acquired Assets & Other Major Drivers

Freshworks, a provider of cloud-based software solutions, reported its third-quarter 2024 earnings, showcasing strong financial performance and...

Baptista Research

Freshworks Inc.: How Are They Dealing WIth Challenges in Strategic Acquisitions Integration & Other Risks? - Major Drivers

Freshworks demonstrated a robust performance in the second quarter of 2024, continuing its trajectory of growth and investment in strategic areas...

Baptista Research

Freshworks Inc.: Strengthening Market Position Through Strategic Acquisitions! - Major Drivers

Freshworks, a prominent software development company, showcased a robust financial performance in the first quarter of 2021, achieving a notable...

Baptista Research

Freshworks: Insiders Keep Buying Shares. Path To Sustainable FCF Positive Business Looks Clear

Strong insider buying and a recent buyout of Zendesk may indicate a bottom for Freshworks shares as valuations have improved. Freshworks...

Andrei Zakharov

Freshworks: Solid 1Q and Strong Outlook Despite Delays With Closing Deals in Europe

Freshworks reported solid 1QFY22 earnings results and raised outlook for FY22. We believe the company may sustain 30%+ subscription revenue growth...

Andrei Zakharov

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