By Dean Seal
Shares of Freshworks surged after the company announced job cuts, launched a new stock-buyback program, reported strong third-quarter results and raised guidance.
The stock was up 27% at $16.61 in early trading. Shares are still down about 29% since the start of the year.
The computer software company said after the market closed on Wednesday that it plans to cut roughly 660 jobs, or 13% of its workforce, by the end of the year. The restructuring is expected to cost $11 million to $13 million in the fourth quarter for severance payments and related expenses.
Freshworks separately reported that it now expects $713.6 million to $716.6 million in revenue this year, up from a prior forecast for $707 million to $713 million. Adjusted earnings are now expected to hit 38 to 39 cents a share, up from a previous range of 32 cents to 34 cents a share.
The lifted guidance came after revenue rose 22% to $186.6 million in the third quarter, topping analyst forecasts. Adjusted earnings of 11 cents a share beat analyst projections by 3 cents.
The company also announced Wednesday that its board has authorized a new $400 million share-buyback program.
Write to Dean Seal at dean.seal@wsj.com
(END) Dow Jones Newswires
November 07, 2024 10:35 ET (15:35 GMT)
Copyright (c) 2024 Dow Jones & Company, Inc.
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