Freshworks CEO Girish Mathrubootham steps down, Dennis Woodside takes over
Girish Mathrubootham, the driving force behind NASDAQ-listed SaaS company Freshworks, has stepped down as CEO. The company, known for its business-oriented customer relationship management (CRM) software tools, has appointed its president Dennis Woodside as the new CEO. Meanwhile, Mathrubootham will assume the role of executive chairman at Freshworks. The company has dual headquarters in Chennai and San Mateo, California.
Take a look at Mathrubootham's post
Mathrubootham's departure rooted in deep belief in Freshworks's future
In an email to his team, Mathrubootham revealed that his decision to step down was based on a "deep belief in our collective vision and the future of our company." He has been discussing his long-term strategy for Freshworks with the board over several years. His focus will now shift toward shaping the company's long-term product vision and expanding its presence in India.
Freshworks's stock reacts to leadership change
The leadership transition at Freshworks sparked a significant reaction in the stock market. Following the announcement of Mathrubootham stepping down, Freshworks's shares saw a nearly 25% decline during after-market hours trading on NASDAQ on Wednesday. This comes after an earlier decision by the board to revoke a performance-based stock award of six million shares intended for Mathrubootham due to uncontrollable macroeconomic factors.
Freshworks's journey and financial performance
Founded in Chennai in 2010, Freshworks initially provided CRM software solutions to small and medium-sized businesses. It is the first Indian SaaS company to list on NASDAQ. Over the years, it expanded its target market to weather economic downturns as these businesses reassessed their technology budgets. Despite a net loss of $23.3 million for Q1 ending March 2024, down from $42.7 million the previous year, Freshworks reported a revenue surge of about 20% year-on-year to $165.1 million.
Freshworks acquires Device42, forecasts future growth
In addition to the leadership change, Mathrubootham announced that Freshworks has signed a deal to acquire Device42, a leading IT asset management provider with over 800 global customers. He believes this acquisition will significantly enhance their Freshservice offering. Looking ahead to the full fiscal year 2024, Freshworks anticipates revenue between $695 million and $705 million, indicating a year-over-year growth of 17% to 18%, and an adjusted profit in the range of $58 million to $64 million.
