Freshworks Board Approves Stock Buyback Worth $400 Mn
by Bhupendra Paintola · Inc42SUMMARY
- This initiative allows Freshworks to buy back shares from the open market, through private negotiations, or other compliant methods as per the Securities Exchange Act of 1934
- The SaaS company also trimmed its consolidated net loss by 3.5% year-on-year to $29.95 Mn in the third quarter of 2024 from $31.03 Mn in the year-ago period
- Freshworks also announced cutting 13% of its global workforce as part of its restructuring affecting about 660 employees globally
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Nasdaq-listed SaaS major Freshworks has announced that its board of directors has approved a stock buyback programme worth $400 Mn of its outstanding Class A common stock.
This initiative allows Freshworks to buy back shares from the open market, through private negotiations, or other compliant methods as per the Securities Exchange Act of 1934.
Freshworks in an exchange filing said, “Open market repurchases may be structured to occur in accordance with the requirements of Rule 10b-18 under the Exchange Act. The Company may also, from time to time, enter into Rule 10b5-1 plans to facilitate repurchases of shares of common stock under this authorisation.”
The decision to initiate this programme reflects Freshworks’ confidence in its growth trajectory and commitment to enhancing shareholder value.
This comes on the sidelines of Freshworks announcing its financial results for the September quarter of 2024 (Q3 FY25), highlighting a 21.4% year-over-year total revenue growth at $186.6 Mn from $153.6 Mn in the corresponding quarter of FY24.
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The SaaS company also trimmed its consolidated net loss by 3.5% year-on-year to $29.95 Mn in the third quarter of 2024 from $31.03 Mn in the year-ago period. Sequentially, net loss widened over 48% quarter-on-quarter from $20.1 Mn in the April to June quarter.
Besides this, the non-GAAP income from operations was $24.0 Mn, compared to $17.4 Mn in the third quarter of 2023.
While the company recorded an uptick in its revenue, Freshworks also announced cutting 13% of its global workforce as part of its restructuring affecting about 660 employees globally.
(The story will be updated soon)