Overview and Basis of Presentation

9 Months Ended

Sep. 30, 2021

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Overview and Basis of Presentation

Overview and Basis of Presentation

Description of business

Freshworks Inc. (Freshworks, or the Company) is a software development company that provides modern software-as-a-service (SaaS) products that are designed with the user in mind. The Company was incorporated in Delaware in 2010 and is headquartered in San Mateo, California, and has foreign subsidiaries located in India, Australia, the United Kingdom, Ireland, Germany, France, the Netherlands, and Singapore.

Initial Public Offering

In September 2021, the Company completed its initial public offering (IPO), in which it issued and sold 31,350,000 shares of its newly authorized Class A common stock at $36.00 per share, which included 2,850,000 shares issued upon the exercise of the underwriters’ option to purchase additional shares. The Company received net proceeds of $1.1 billion from the IPO, after deducting underwriters’ discounts. As of September 30, 2021, deferred offering costs totaling $7.0 million were reclassified to stockholders' equity (deficit) as a reduction of the net proceeds from the IPO.

In connection with the IPO, all shares of common stock then outstanding were reclassified as Class B common stock, and all shares of redeemable convertible preferred stock then outstanding were converted into 153,937,730 shares of common stock on a one-to-one basis and then reclassified into Class B common stock. See Note 10 for additional details.

As detailed in Note 11—Stockholders' Equity and Stock-Based Compensation, under the 2011 Stock Plan, the Company granted employees restricted stock units (RSUs) with both a service and a liquidity performance condition. Upon the Company's IPO on September 22, 2021, the liquidity event condition was met for all RSUs. RSUs that had already met the service condition at that date are entitled to one share of Class B common stock for each vested RSU, which will be issued on the applicable settlement dates, which may occur in increments if certain stock price targets are met, and in any event will be fully settled approximately 180 days after the IPO.

Stock Split

In September 2021, the Company completed a 10-for-one forward stock split of the Company’s authorized, issued and outstanding stock. All share and per share information included in the accompanying condensed consolidated financial statements and notes thereto has been adjusted on a retrospective basis to reflect this stock split.