CRM Firm Freshworks (FRSH) Valued at Over $10B as IPO Prices Above Expected Range

CRM player Freshworks (NASDAQ: FRSH) priced its IPO of 28,500,000 shares of Class A at $36 per share, which was above the expected $32-$34 range. Shares will open later today on the NASDAQ under the ticker 'FRSH'.

The Freshworks IPO pricing values the company at approximately $10.2 billion.

Morgan Stanley, J.P. Morgan and BofA Securities are acting as lead book-running managers for Freshworks IPO. Jefferies and Barclays are acting as book-running managers for the offering. Baird, Canaccord Genuity, JMP Securities, Needham & Company, Wolfe | Nomura Strategic Alliance, Oppenheimer & Co., Piper Sandler, Raymond James, AmeriVet Securities, CastleOak Securities, L.P., Ramirez & Co., Inc., R. Seelaus & Co., LLC, are acting as co-managers for the offering.

Freshworks total revenue was $172.4 million and $249.7 million in the years ended December 31, 2019 and 2020, respectively, representing a year-over-year growth rate of 45%. Total revenue was $110.5 million and $168.9 million in the six months ended June 30, 2020 and 2021, respectively, representing an increase of 53% year-over-year.

The company incurred operating losses of $29.7 million and $56.1 million in the years ended December 31, 2019 and 2020, respectively, and net losses were $31.1 million and $57.3 million in the years ended December 31, 2019 and 2020, respectively. Freshworks incurred operating losses of $52.8 million and $8.2 million in the six months ended June 30, 2020 and 2021, respectively, and net losses were $57.1 million and $9.8 million in the six months ended June 30, 2020 and 2021, respectively.

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