Covering IPOs, Healthcare and Technology Stocks

Andrei Zakharov

Algosun Global

Equity Bottom-Up

<ul>
<li>We are moving our PT to $26 by applying a 14x multiple to CY22 revenue estimate of $491M, which we believe is fair given lower implied CY22 growth. </li>
<li>Freshworks has resolved the litigation filed by Zoho Corporation regarding trade secret misappropriation against Freshworks, eliminating key risk factor for investors.</li>
<li>Freshworks crossed the $400M ARR mark in the quarter ended Dec-21, and quarterly revenue exceeded $100M for the first time. </li>
</ul>


We are moving our PT to $26 by applying a 14x multiple to CY22 revenue estimate of $491M, which we believe is fair given lower implied CY22 growth. 
Freshworks has resolved the litigation filed by Zoho Corporation regarding trade secret misappropriation against Freshworks, eliminating key risk factor for investors.
Freshworks crossed the $400M ARR mark in the quarter ended Dec-21, and quarterly revenue exceeded $100M for the first time. 


Freshworks: Six Months Post-IPO. Valuation Update

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.

<ul><li>Freshworks had a strong fourth quarter in 2023, with revenue exceeding the high end of its financial estimates at $160.1 million.</li><li>They significantly improved their operating efficiency, changing from using cash for operations in 2022 to generating $78 million of free cash flow in 2023.</li><li>For the full year 2023, Freshworks finished with a revenue of $596.4 million and free cash flow margin of 13%.</li></ul>

Freshworks had a strong fourth quarter in 2023, with revenue exceeding the high end of its financial estimates at $160.1 million.They significantly improved their operating efficiency, changing from using cash for operations in 2022 to generating $78 million of free cash flow in 2023.For the full year 2023, Freshworks finished with a revenue of $596.4 million and free cash flow margin of 13%.

Freshworks Inc: Is Artificial Intelligence (AI) The Biggest Growth Catalyst? - Major Drivers

<ul><li>This is our first report on Freshworks Inc, a renowned customer service software player.</li><li>Increased free cash flow along with a rise in the free cash flow margin to 14% likewise surpassed estimates.</li><li>In this report, we have carried out a fundamental analysis of the historical financial statements of the company.</li></ul>

This is our first report on Freshworks Inc, a renowned customer service software player.Increased free cash flow along with a rise in the free cash flow margin to 14% likewise surpassed estimates.In this report, we have carried out a fundamental analysis of the historical financial statements of the company.

Freshworks Inc: Initiation of Coverage - 4 Reasons Responsible For Their Future Growth! – Major Drivers

Consumer Analyst / Channel Surveillance Specialist, Trudence Capital Advisors

Pranav Bhavsar

Consumer Analyst / Channel Surveillance Specialist

Trudence Capital Advisors

Trudence Capital Advisors Private Limited is a SEBI-registered Research Analyst, holding SEBI registration number INH000015747. Our firm is dedicated to providing independent and unbiased research on Indian mid to large-cap companies. Trudence Capital is known for its counter-consensus views, with a focus on forensic research and on-ground primary investigations. Our research approach is thorough, involving detailed analysis of accounting practices and governance, alongside extensive channel checks.

Independent & Unbiased Research

Private Capital Markets

<ul>
<li>
<a href="https://www.smartkarma.com/entities/browserstack-inc" target="_blank" data-smartkarma-citation="entities:36118:1" rel="noopener">Browserstack (1573804D US)</a> is a web and mobile testing platform company that aids developers to test their products for bugs and glitches across multiple desktops and mobiles.    </li>
<li>Channel feedback is encouraging and positive. The company is leveraging India's unique tailwinds, creating products that are global from Day 1.</li>
<li>Profitable from the first 6 months of operations, financials remain robust and the company's plan to cross $200 mn AAR this year is likely to materialise. </li>
</ul>



Browserstack (1573804D US) is a web and mobile testing platform company that aids developers to test their products for bugs and glitches across multiple desktops and mobiles.    
Channel feedback is encouraging and positive. The company is leveraging India's unique tailwinds, creating products that are global from Day 1.
Profitable from the first 6 months of operations, financials remain robust and the company's plan to cross $200 mn AAR this year is likely to materialise. 


Browserstack Tearsheet - India's SaaS Behemoth

<ul>
<li>Freshworks, a cloud-based customer services software unicorn, held its first Investor Day on September 7, 2023. Management highlighted the long-term target to deliver the Rule of 40 by 2025. </li>
<li>The 2023 Investor Day agenda included company vision and strategy, solutions in action, strategy for durable growth, customer spotlight, and financial overview, among others. </li>
<li>Management plans to deliver a long-term balance of growth and profitability, with the 2026 model leading to an FCF margin of 20%+ and $1B+ revenue. </li>
</ul>


Freshworks, a cloud-based customer services software unicorn, held its first Investor Day on September 7, 2023. Management highlighted the long-term target to deliver the Rule of 40 by 2025. 
The 2023 Investor Day agenda included company vision and strategy, solutions in action, strategy for durable growth, customer spotlight, and financial overview, among others. 
Management plans to deliver a long-term balance of growth and profitability, with the 2026 model leading to an FCF margin of 20%+ and $1B+ revenue. 


Freshworks: 2023 Investor Day and Valuation Update

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: Six Months Post-IPO. Valuation Update

Our new price target of $26 (vs. prior $47) is based on relative value methodology and implies ~39% upside, what is below IPO price of $36 per share

Andrei Zakharov

Freshworks Inc: Is Artificial Intelligence (AI) The Biggest Growth Catalyst? - Major Drivers

Freshworks had a strong fourth quarter in 2023, with revenue exceeding the high end of its financial estimates at $160.1 million. They...

Baptista Research

Freshworks Inc: Initiation of Coverage - 4 Reasons Responsible For Their Future Growth! – Major Drivers

This is our first report on Freshworks Inc, a renowned customer service software player. Increased free cash flow along with a rise in the free...

Baptista Research

Browserstack Tearsheet - India's SaaS Behemoth

India Unicorn Series: We profile India's SaaS behemoth "BrowserStack". Global and profitable from Day 1, the opportunity set for SaaS is as good as...

Pranav Bhavsar

Freshworks: 2023 Investor Day and Valuation Update

2023 Investor Day highlights massive TAM, ongoing business momentum, adoption of multi-product strategy, and AI monetization opportunities: PT...

Andrei Zakharov

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