Freshworks announced on April 1 that Dennis Woodside will be taking over as the CEO of the CRM software maker, while founder Girish Mathrubootham will assume the role of executive chairman. Mathrubootham will now focus more on the long-term product vision, innovation, and AI strategy.
“As I write this today, I am filled with various emotions. The past 14 years have been an incredible journey, witnessing Freshworks grow from a startup in Chennai to a global SaaS company. I am proud that we are the first Indian SaaS company listed on Nasdaq… Today, I am announcing a new chapter in our company’s story and my career. I have decided to step down as CEO of Freshworks and transition into the role of Executive Chairman. I am thrilled to announce that Dennis Woodside, our President, will be our new CEO,” Mathrubootham said in an address to the employees.
Shares of the San Mateo, California-based company dropped about 21 percent in extended trading.
Woodside joined Freshworks as president in 2022, bringing with him a background that includes roles as president at Impossible Foods, Dropbox COO, and Motorola Mobility CEO.
The latest restructuring comes after the board of directors of Freshworks canceled the CEO Performance Award allotted to Girish Mathurbootham in 2022 due to changes in performance targets resulting from tough macroeconomic conditions.
There have been several management changes within the company, including the departure of the Chief Revenue Officer Pradeep Rathinam and new appointments like Mika Yamamoto as Chief Customer and Marketing Officer (CCMO) and Johanna Jackman as Chief People Officer (CPO).
Q1 results
Freshworks reported consolidated revenue of $165.5 million in Q1, up 20 percent YoY, with non-GAAP operating profit increasing to $21.8 million. Net losses were reduced by 44 percent to $24 million during the quarter.
The company provided a full-year revenue guidance for 2024 of $695-705 million, with operating profitability projected at $58-64 million.
Mathrubootham founded the company in 2010 in Chennai and led it to go public on the Nasdaq stock exchange in 2021.
(With inputs from agencies)
