The first Indian SaaS company to be listed on Nasdaq, Fireworks, has just witnessed a 28% surge in its share price after reporting upbeat results for the third quarter. Moreover, the company initiated a share buyback of around $400 million. However, even after getting good financial results, the company announced that it would be laying off some of its workforce.
Freshworks said it will trim 13% of its workforce globally, around 660 employees. The company expects to spend around $13 million to $14 million in the fourth quarter on this restructuring and expects the plans to be completed before 31 December.
Freshworks’ revenue increase resulted from the high demand for its AI-driven products. Moreover, Freshworks has raised its annual revenue forecast to between $713.6 million and $716.6 million, up from the previous $707 million to $713 million, and increased its annual adjusted profit per share estimate to 38-39 cents from 32-34 cents, according to Reuters.
The company also projected fourth-quarter revenue between $187.8 million and $190.8 million. Freshworks offers tools like Freshservice, an IT service management platform aiding employee onboarding, and Freshdesk, a customer service solution designed to resolve customer issues quickly. The company has around 68,000 customers, including Sony, American Express, Nucor, Databricks and more.
With the increase in revenue and job cuts, Freshworks also announced that its board of directors had approved a $400 million stock buyback of its outstanding Class A stock. However, as of now, there isn’t any timeline as to when the buyback will be completed.
Many companies worldwide are initiating job cuts and restructuring to address their challenges. Even giants like Google, which recently laid off 200 employees, are not immune to corporate changes.
