- Freshworks, a SaaS unicorn has offered its founder and CEO, Girish Mathrubootham, 9 Mn stock units worth $233.41 Mn as stock awards.
- Freshworks was founded by Girish Mathrubootham and Shan Krishnasamy in the year 2010.
- Freshworks now has a market cap of $4.6 billion, down from $13.4 billion when it was listed.
Freshworks, a SaaS unicorn has offered its founder and CEO, Girish Mathrubootham, 9 Mn stock units worth $233.41 Mn as stock awards. Over the next seven years, the stock units will vest.
The stock award is excluded from Mathrubootham’s $611,980 annual salary. According to a disclosure made by the company to the US Securities and Exchange Commission (SEC), the company issued 9 Mn stock units, of which 6 Mn were restricted stock units (RSUs) based on performance and 3 Mn were restricted stock units (RSUs) to vest over four years.
Freshworks’ stock price on NASDAQ affects the performance of the stock award. During the two months before January 2029, for Freshworks’ stock price to average above $200, Mathrubootham needs to receive the entire award.
Mathrubootham stands to get a third of the PSUs, or about 2 million shares, even if the company fails to meet the target or if the CEO exits.
Freshworks was founded by Girish Mathrubootham and Shan Krishnasamy in the year 2010. In addition to the AI-powered chatbots and messaging platform, the software also features call centre-based customer support solutions. Additionally, it offers HRM solutions and marketing automation solutions.
Freshworks reported a $47.1 million operating loss for the first quarter of 2022, up from $1.7 million a year prior. As compared to the corresponding quarter a year ago, the company’s net loss increased to $49.1 Mn, up from $2.4 Mn.
Nevertheless, Freshworks’ total revenue grew by 42% year-on-year (YoY) during the quarter under consideration, reaching $114.6 Mn. Furthermore, the company reported revenues of more than $100 million in its second-quarter following a decline.
Freshworks is slated to list on the NASDAQ exchange in the United States in September 2021. For $36 per share, the company sold 31 Mn shares. After deducting underwriters’ discounts, the company raised approximately $1.1 Bn from its IPO.
Those rewards come as the SaaS unicorn’s equity-based compensation costs reached $173.4 Mn, 300% more than its $43.3 Mn in 2020, according to the company filings. Freshworks had revenue of $371 million in 2021, almost half of this amount.
The company shares hit a low of $12.91 earlier this month, and at the close on May 27, the company’s shares traded at $16.09 per share, 10.81% higher than the previous close. Additionally, Freshworks now has a market cap of $4.6 billion, down from $13.4 billion when it was listed.
For more such startup related news kindly follow Aplhafirms.