Shares of Freshworks Inc. dropped in after-hours trading today despite the customer service and support software firm reporting slightly better-than-expected revenue and outlook in its latest earnings report.

For the quarter ended Dec. 31, Freshworks reported a loss before costs such as stock compensation of six cents per share, up from a loss of one cent per share a year ago. Revenue rose 44%, to $105.5 million. The earnings per share loss of six cents fell in line with analysts’ expectations, while revenue beat a predicted $100.3 million.

Net cash flow provided by operating activities in the quarter came in at $44.8 million, down from $13.4 million in the fourth quarter of 2020, while free cash flow was $2.8 million, down from $11.9 million year-over-year.

Highlights in the quarter included the number of customers contributing more than $5,000 in annual recurring revenue increasing 28% year-over-year, to 14,814. The company’s net dollar retention rate was 114%, down from 117% in the third quarter but up from 111% in the fourth quarter of 2020.

Freshworks’ new customers in the quarter included the British Museum, Databricks Inc., Humanscale Corp., Jollyroom, KaDeWe, Nation Safe Drivers, StyleSeat Inc. and Wheel Pros LLC.

For the full year 2021, Freshworks reported an adjusted loss of 21 cents per share, compared with a loss of 12 cents per share in 2020. Revenue for the year rose 49%, to $371 million.

“We had a strong finish to the year as we surpassed $100 million in quarterly revenue and achieved 44% year-over-year growth in the fourth quarter,” Girish Mathrubootham (pictured), founder and chief executive of Freshworks, said in a statement.

Looking forward, Freshworks predicts an adjusted loss of five to seven cents per share in the first quarter on revenue of $107 million to $109 million. For the full year 2022, Freshworks forecasts an adjusted loss per share of 19 to 23 cents on revenue of $486.5 million to $495 million. The revenue outlook for the quarter and full-year were both just ahead of analyst predictions.

Shares in Freshworks dropped as much as 13% after the bell before recovering to be fall more than 6%.

Photo: Girish Mathrubootham/Twitter