Freshworks: Undervalued SaaS With Execution Upside

  • Freshworks offers value at current multiples, but growth and operating margin trends require deeper analysis to confirm if it's a true bargain. Revenue growth is healthy, but not explosive; high sales spend and intense competition raise concerns about long-term margin improvement and category leadership. Strong R&D investment and product enhancements, especially with Freddy AI, support retention and efficiency, but ARR and net retention need ongoing monitoring.