Freshworks Investor Day Presentation Deck
Use of Non-GAAP Measures
In addition to the U.S. generally accepted accounting principles ("GAAP") financials, this presentation includes certain non-
GAAP financial measures, including non-GAAP income (loss) from operations, non-GAAP gross profit, non-GAAP cost of
revenue, non-GAAP operating expenses, and free cash flow. This presentation also includes certain non-GAAP metrics,
including annual recurring revenue, average revenue per account, net dollar retention rates, revenue growth rates and related
presentation thereof with adjustments for constant currency.
We use these non-GAAP measures in conjunction with GAAP measures as part of our overall assessment of our performance,
including the preparation of our annual operating budget and quarterly forecasts, to evaluate the effectiveness of our
business strategies and to communicate with our board of directors concerning our financial performance. We believe these
non-GAAP measures provide investors consistency and comparability with our past financial performance and facilitate
period-to-period comparisons of our operating results. We believe these non-GAAP measures are useful in evaluating our
operating performance compared to that of other companies in our industry, as they generally eliminate the effects of certain
items that may vary for different companies for reasons unrelated to overall operating performance.
Investors, however, are cautioned that there are material limitations associated with the use of non-GAAP financial measures
as an analytical tool. The presentation of these non-GAAP financial measures is not intended to be considered in isolation or
as a substitute for, or superior to, financial information prepared and presented in accordance with GAAP. The non-GAAP
measures we use may be different from non-GAAP financial measures used by other companies, limiting their usefulness for
comparison purposes. We compensate for these limitations by providing specific information regarding the GAAP items
excluded from these non-GAAP financial measures. Please see the appendix for a reconciliation of the non-GAAP financial
measures used in this presentation to the most directly comparable GAAP financial measures.
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