FRESHWORKS INC. (FRSH) SHAREHOLDER CLASS ACTION ALERT: Bernstein Liebhard LLP Reminds Investors of the Deadline to File a Lead Plaintiff Motion in a Securities Class Action Lawsuit Against Freshworks Inc. (FRSH)

Nov 25th, 2022 1:45 EST

Did you lose money on investments in Freshworks? If so, please visit Freshworks Inc. Shareholder Class Action Lawsuit or contact Peter Allocco at (212) 951-2030 or [email protected] to discuss your rights.

New York, New York--(Newsfile Corp. - November 25, 2022) - Bernstein Liebhard LLP, a nationally acclaimed investor rights law firm, reminds investors of the deadline to file a lead plaintiff motion in a securities class action lawsuit that has been filed on behalf of investors who purchased or otherwise acquired the common stock of Freshworks Inc. ("Freshworks" or the "Company") (NASDAQ: FRSH) pursuant and/or traceable to the Registration Statement and Prospectus (collectively, the "Offering Documents") issued in connection with the Company's initial public offering (the "IPO" or the "Offering"). The lawsuit was filed in the United States District Court for the Northern District of California and alleges violations of the Securities Act of 1933.

Freshworks, which is headquartered in San Mateo, California, provides customer engagement software for businesses. On or about September 22, 2021, Freshworks conducted its IPO, offering 28.5 million shares of its common stock to the investing public at a price of $36 per share (the "Offering Price"). Defendants anticipated generating gross proceeds of over $1 billion from the IPO.

According to the Offering Documents, Freshworks' business had "grown rapidly" in the lead up to the IPO, with the Company observing "broad appeal of [its] products to customers of all sizes and geographies." As a result, the Company's growth rates and purportedly "healthy" net dollar retention rates, reflecting the usage of its products from existing customers and the sale of additional products to these customers, reached levels not previously achieved, and there was no indication that either was decelerating. Rather, the Offering Documents repeatedly and prominently touted Freshworks' 118% net dollar retention rate for the period ended June 30, 2021, which represented a noteworthy increase from the 107%, 111%, and 112% net dollar retention rates achieved as of June 30, 2020, December 31, 2020 and March 31, 2021, respectively, as well as Freshworks' year-over-year revenue growth rate of 53% (as of June 30, 2021), which likewise represented a significant increase over the Company's 45% year-over-year growth rate for the period ended December 31, 2020. Unbeknownst to investors, at the time of the IPO, Freshworks' revenue growth and billings had encountered obstacles.

Freshworks' stock declined after the Company announced its fourth fiscal quarter of 2021 earnings on February 10, 2022, during which it reported flat calculated billings growth (of 41% when normalized for early renewals and reserve activity) and revenue growth deceleration of only 44% year over year. On this news, Freshworks' stock dropped 18%, closing on February 11, 2022 at $18.41 per share.

Then, on May 3, 2022, after the market closed, Freshworks reported its first quarter 2022 financial results, reporting a third quarter of decelerating revenue growth and billings that missed consensus estimates and declined 13% quarter over quarter. Many analysts immediately responded by reducing their price targets. For example, on May 4, 2022, after highlighting how Freshworks' revenue growth has "decelerat[ed]" three consecutive quarters, including during the period within which Freshworks went public, defendant JMP Securities LLC dropped its price target from $41 to $29.

On May 5, 2022, Freshworks closed at $15.99 per share, down approximately 5.72% over two days.

By the commencement of this action, Freshworks' shares traded as low as $10.51 per share, a decline of nearly 70% from the Offering price.

If you wish to serve as lead plaintiff, you must move the Court no later than January 3, 2023. A lead plaintiff is a representative party acting on behalf of other class members in directing the litigation. Your ability to share in any recovery doesn't require that you serve as lead plaintiff. If you choose to take no action, you may remain an absent class member.

If you purchased or otherwise acquired Freshworks common stock, and/or would like to discuss your legal rights and options please visit Freshworks Inc. Shareholder Class Action Lawsuit or contact Peter Allocco at (212) 951-2030 or [email protected].

Since 1993, Bernstein Liebhard LLP has recovered over $3.5 billion for its clients. In addition to representing individual investors, the Firm has been retained by some of the largest public and private pension funds in the country to monitor their assets and pursue litigation on their behalf. As a result of its success litigating hundreds of lawsuits and class actions, the Firm has been named to The National Law Journal's "Plaintiffs' Hot List" thirteen times and listed in The Legal 500 for ten consecutive years.

ATTORNEY ADVERTISING. © 2022 Bernstein Liebhard LLP. The law firm responsible for this advertisement is Bernstein Liebhard LLP, 10 East 40th Street, New York, New York 10016, (212) 779-1414. Prior results do not guarantee or predict a similar outcome with respect to any future matter.

Contact Information:

Peter AlloccoBernstein Liebhard LLPhttps://www.bernlieb.com(212) 951-2030[email protected]

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/145177

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