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Investment Thesis
Freshworks (NASDAQ:FRSH) is a relatively new entrant in the Customer Relationship Management (CRM) industry. The company was listed in the markets in 2021, but like most of the younger companies on the market, it received a rude awakening in 2022 as the markets re-rated the equity risk premiums and cash flows needed to be prioritized. Last year, the company unveiled its multi-year operating plan in its Investor Day presentation, showcasing its product roadmap and its margin expansion strategy to achieve durable growth.
Since the presentation, Freshworks stock has picked up pace to beat the S&P 500 Index (SP500) and the iShares Expanded Tech-Software Sector ETF (IGV) that I use as a benchmark for cloud-based technology stocks.
Seeking Alpha
I believe investors are discounting the value of Freshworks’ market cap as of today relative to the current margin expansion history and…
