Freshworks Inc. Goodwill & Intangibles Disclosure
| Balance as of December 31, 2023 | $ | 6,181 | |||
Goodwill acquired | 140,833 | ||||
| Balance as of December 31, 2024 | $ | 147,014 | |||
| December 31, 2024 | |||||||||||||||||||||||
| Gross Amount | Accumulated Amortization | Net Carrying Value | Weighted Average Remaining Useful Life | ||||||||||||||||||||
| (in years) | |||||||||||||||||||||||
| Developed technology | $ | 41,196 | $ | (13,423) | $ | 27,773 | 5.4 | ||||||||||||||||
| Customer relationships | 69,200 | (6,433) | 62,767 | 7.4 | |||||||||||||||||||
Trademarks | $ | 700 | $ | (400) | $ | 300 | 0.4 | ||||||||||||||||
| Total | $ | 111,096 | $ | (20,256) | $ | 90,840 | |||||||||||||||||
| Year Ended December 31, | |||||||||||||||||
| 2024 | 2023 | 2022 | |||||||||||||||
| Cost of revenue | $ | 2,927 | $ | 158 | $ | 1,191 | |||||||||||
| Sales and marketing | $ | 5,233 | 145 | 400 | |||||||||||||
| Total amortization expense | $ | 8,160 | $ | 303 | $ | 1,591 | |||||||||||
Year Ending December 31, | ||||||||
| 2025 | $ | 13,854 | ||||||
| 2026 | 13,553 | |||||||
| 2027 | 13,553 | |||||||
| 2028 | 13,591 | |||||||
| 2029 | 13,553 | |||||||
Thereafter | 22,736 | |||||||
Total future amortization | $ | 90,840 | ||||||
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2024 | Feb 20, 2025 | Showing above |
| 2022 | Feb 23, 2023 | |
| 2021 | Feb 23, 2022 | |
About Goodwill & Intangibles Disclosures
Goodwill and intangible asset disclosures reveal the premium paid in acquisitions and how management assesses whether that premium retains its value. Since goodwill is no longer amortized under US GAAP, the annual impairment test is the only mechanism that adjusts carrying values downward — making the assumptions behind that test critically important for investors.
Key signals: a history of goodwill impairments suggests management consistently overpays for acquisitions. Watch the gap between reporting unit fair value and carrying amount — when fair value exceeds carrying amount by less than 10-20%, a small decline in business performance could trigger a write-down. For finite-lived intangibles, examine useful life assumptions across customer relationships, technology, and trade names; aggressive estimates inflate near-term earnings. Compare total intangibles-to-total-assets ratios against peers to assess acquisition dependency. Rising goodwill as a percentage of equity can signal balance sheet fragility.