Freshworks shares slump 25% after Girish Mathrubootham steps down as CEO; revenue forecast slashed

Mathrubootham has transitioned from the CEO relation to the company's committee arsenic the enforcement chairman. Freshworks besides named Dennis Woodside who volition instrumentality implicit arsenic CEO. Woodside joined Freshworks arsenic president successful 2022, with a anterior nonrecreational grounds including president astatine Impossible Foods, CEO astatine Dropbox and CEO astatine Motorola Mobility.

Freshworks offers an IT work absorption merchandise called Freshservice, which assists businesses with worker onboarding and management. The company, which erstwhile targeted a valuation of astir $10 cardinal for its archetypal nationalist offering, has seen its banal terms suffer much than 60 per cent from its highest successful 2021.

The stock's existent losses are acceptable to erase astir $1.4 cardinal from the company's marketplace worth of $5.45 cardinal based connected Wednesday's closing price. Brokerage Baird Equity said connected Thursday that it likes the determination upmarket to enterprise. They are stepping to the sidelines and volition look for a amended introduction constituent upon signs of stableness and GenAI clarity

Piper Sandler analysts flagged unit connected Freshworks' tiny and medium-sized concern (SMB) customers. The SMB cohort continued to spot unit connected enlargement rates, lawsuit adds and churn during Q1, according to the analysts.

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Published: 02 May 2024, 10:27 PM IST