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freshworks Freshworks Reports Third Quarter 2021 Results November 2 , 2021 • Total revenue grew 46 % year - over - year • Net dollar retention rate of 117 % , up 8 percentage points year - over - year • Announced annual user conference Refresh SAN MATEO , Calif . , Nov. 02 , 2021 ( GLOBE NEWSWIRE ) -- Freshworks Inc. ( NASDAQ : FRSH ) , a leading software company empowering businesses to delight their customers and employees , today announced financial results for its third quarter ended September 30 , 2021 . " Our strong third quarter results reflect the continued adoption of our modern and easy - to - use products by companies of all sizes , " said Girish Mathrubootham , CEO and founder of Freshworks . " We grew 46 % year over year , and saw healthy expansion activity from our customer base . " Third Quarter 2021 Financial Summary Results • Revenue : Total revenue was $ 96.6 million , representing growth of 46 % compared to the third quarter of 2020 . • GAAP ( Loss ) Income from Operations : GAAP ( loss ) from operations was $ ( 140.3 ) million , compared to GAAP income from operations of $ 0.1 million in the third quarter of 2020 . • Non - GAAP ( Loss ) Income from Operations : Non - GAAP ( loss ) from operations was $ ( 1.5 ) million , compared to non - GAAP income from operations of $ 1.2 million in the third quarter of 2020 . • GAAP Net ( Loss ) Per Share : GAAP net ( loss ) per share was $ ( 24.72 ) based on 95.9 million weighted - average shares outstanding , compared to $ ( 3.49 ) based on 76.9 million weighted - average shares outstanding in the third quarter of 2020 . • Non - GAAP Net ( Loss ) Income Per Share : Non - GAAP basic and diluted net ( loss ) per share was $ ( 0.04 ) based on 95.9 million weighted - average shares outstanding ; compared to a non - GAAP basic and diluted net income per share of $ 0.03 and $ 0.01 , respectively , based on 76.9 million and 233.6 million weighted - average shares outstanding , respectively , in the third quarter of 2020 . • Net Cash ( Used in ) Provided by Operating Activities : Net cash ( used in ) operating activities was $ ( 2.0 ) million , compared to net cash provided by operating activities of $ 12.8 million in the third quarter of 2020 . • Free Cash Flow : Free cash flow was $ ( 4.2 ) million , compared to $ 10.3 million in the third quarter of 2020 . • Cash , Cash Equivalents and Restricted Cash and Marketable Securities : Cash , cash equivalents , and restricted cash and marketable securities were $ 1.3 billion as of September 30 , 2021 . A description of non - GAAP financial measures is contained in the section titled " Explanation of Non - GAAP Financial Measures " below and a reconciliation of GAAP to non - GAAP financial measures is contained in the tables below . Third Quarter Key Metrics and Recent Business Highlights • Number of customers contributing more than $ 5,000 in ARR was 14,079 , an increase of 31 % year - over - year . • Net dollar retention rate was 117 % , compared to 118 % in the second quarter of 2021 and 109 % in the third quarter of 2020 . • Completed an Initial Public Offering and listed as FRSH on NASDAQ . • Welcomed new customers to the Freshworks community including : Double Diamond Resorts , ForgeRock , Hunter College NY , Lucidworks , Phillips , Scotch and Soda , Smashburger , Toyota Connected India , Watsons , and more . • Included in the 2021 Gartner Magic Quadrant for IT Service Management ( ITSM ) Tools as a " Challenger " . • Promoted Pam Sergeeff as its Chief Legal Officer & General Counsel .