Girish Mathrubootham Steps Down As CEO Of Freshworks, Who Is The New CEO Now?

In a significant development within the realm of Nasdaq-listed software firm Freshworks, Girish Mathrubootham, the pioneering force behind its beginning, has made a strategic decision. He has stepped down from his role as chief executive officer, marking a pivotal moment in the company's trajectory. Let's understand the details of this transition and its implications for Freshworks.

Girish Mathrubootham's Transition:

After a remarkable tenure spanning 14 years, Girish Mathrubootham has chosen to embark on a new chapter. He step down from his position as CEO to redesignate as executive chairman within Freshworks. This transition, announced during the company's first-quarter earnings call, signifies a deliberate shift in leadership dynamics.

Meet the New CEO:

Dennis Woodside is stepping into the CEO role. With a strong background at Motorola Mobility and Dropbox, Woodside brings valuable experience to Freshworks. His appointment signals a focus on innovation and growth.

Career highlights of Dennis Woodside

Woodside became the President of Freshworks in September 2022, where he reported to CEO and founder Girish Mathrubootham. In this role, he oversaw the company's global business operations and strategy. Before joining Freshworks, he served as President of Impossible Foods from March 2019 to August 2022, where he significantly increased revenue from around $10 million to about $100 million.

He managed various functions including operations, manufacturing, supply chain, sales, marketing, and HR. Prior to that, Woodside was the COO of Dropbox from April 2014 to December 2018, where he played a key role in growing revenue from around $300 million to $1.4 billion and was involved in the company's IPO. He also held positions at Google from 2003 to 2012, including Managing Director of Emerging Markets, VP of Sales (UK), and President, Americas, overseeing an $18 billion advertising sales business.

Additionally, Woodside served as CEO of Motorola Mobility from May 2012 to April 2014 after it was acquired by Google. He currently serves on the board of the American Red Cross and previously served on the ServiceNow board from 2018 to 2022.

Market Reaction and Future Outlook:

Following this announcement, Freshworks (previously known as Freshdesk) experienced a notable fluctuation in its stock value, reflecting market sentiment, which dropped by over 25% during extended trading on the Nasdaq. By the time the news went public, the shares had settled at $18.25 each. Despite this, the company remains steadfast in its vision and outlook for the future. With a projected second-quarter revenue and strategic initiatives underway, Freshworks continues to navigate the evolving landscape of the software industry with resilience and foresight.

Girish Mathrubootham's Vision:

In his reflections on this transition, Girish Mathrubootham highlights his unwavering dedication to Freshworks' long-term vision. He articulates his intention to leverage his new role as executive chairman to drive innovation, particularly in the realm of artificial intelligence (AI). Additionally, he expresses his commitment to fostering a robust presence for Freshworks in India, reaffirming the company's roots and global aspirations.

In a Blog post Mathrubootham wrote, "The past 14 years have been an incredible journey, one that has seen Freshworks grow from a fledgling startup in Chennai into the global SaaS company that we are today." ¡°I¡¯m incredibly proud that we are the first Indian SaaS company listed on Nasdaq.", he added

¡°As I pass the baton to Dennis and move into my new seat as Executive Chairman, I look forward to continuing to serve Freshworks, focusing on our long-term product vision and AI, spending more time with our teams in India, and being a trusted advisor to Dennis," he said.

¡°Freshworks delivered 20% revenue growth with improving profitability and a strong free cash flow margin in Q1," Mathrubootham said.

A Legacy of Innovation and Growth:

Founded in 2010 in Chennai, India, Freshworks has emerged as a trailblazer in the SaaS landscape. Under Girish Mathrubootham's leadership, the company achieved a historic milestone by becoming the first Indian SaaS firm to be listed on the Nasdaq. This legacy of innovation, coupled with a relentless pursuit of excellence, underscores Freshworks' position as a transformative force in the industry.

In March, the board decided to revoke Girish Mathrubootham¡¯s stock unit award of 6 million shares. The rationale behind this decision was that the stock price targets set at the time of the award were too ambitious compared to the current stock price, rendering the award ineffective in retaining its intended value. The board attributed this situation to macroeconomic conditions beyond the control of the company¡¯s leadership.

During the period spanning January to March, Freshworks disclosed a consolidated revenue of $165 million, marking a notable 20% increase compared to the previous year. The company also experienced a substantial rise in its Non-GAAP operating profit, which surged from $3.9 million to $21.8 million, reflecting a remarkable growth trajectory. This quarter also witnessed a significant improvement in free cash flow, which stood at $38.7 million, a substantial leap from $9.1 million reported during the same period in the preceding year.

Financial Performance and Strategic Imperatives:

Despite external challenges, Freshworks continues to demonstrate resilience and agility in its financial performance. With a robust revenue growth trajectory and a focus on operational efficiency, the company remains poised for sustained success. Moreover, its strategic investments in AI innovation and customer-centric solutions reflect its commitment to staying ahead of the curve.

¡°I¡¯m particularly proud of the progress we¡¯ve made in AI innovation across our products, and its tangible impact on our customers. We remain more focused than ever on product innovation, bringing more large customers onto our platform, and expanding adoption of products across our portfolio.", Mathrubootham stated.

Mathrubootham's Entrepreneurial Journey

Girish Mathrubootham, the co-founder and former CEO of Freshworks was born in March 1974, into a middle-class family. His father, a retired banker, hailed from the small town of Trichy in Tamil Nadu. Girish's educational journey began at Campion Anglo-Indian Higher Secondary School. He is renowned for his visionary leadership in the realm of software solutions. Since the inception of Freshworks, he has played a pivotal role in steering the company towards success. Freshworks specialises in providing businesses with cutting-edge software solutions tailored for customer engagement and retention.

Mathrubootham holds a Bachelor's degree in Engineering in Electrical and Electronics from Shanmugha Arts Science Technology & Research Academy, as well as an MBA in Marketing from the University of Madras. He is actively involved in the tech community and serves as a member of the Product Council for NASSCOM, the prominent trade association representing Indian software companies. Additionally, Mathrubootham has demonstrated his commitment to fostering innovation by personally investing in over 60 startups since the inception of Freshworks.

The journey of Freshworks is deeply intertwined with Mathrubootham's entrepreneurial spirit. Prior to founding Freshdesk, Mathrubootham served as the VP of Product Management at ManageEngine, a division of Zoho Corp. His experience in product strategy, customer support, marketing, and product management laid the foundation for his future endeavours. Inspired by a market gap created by US-based competitor Zendesk, Mathrubootham seized the opportunity to launch Freshworks and challenge the status quo.

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Mathrubootham moved his company from Chennai to San Mateo, California. His firm serves more than 50,000 customers across 120 companies. They provide a platform to clients with software tools for sales, productivity, marketing, human resources, and IT.

Freshworks embarked on its journey with a singular focus on customer support, and its debut product garnered immediate success. Over the years, the company expanded its portfolio to include a range of solutions tailored for sales, customer service, and beyond. Today, Freshworks serves over 150,000 businesses globally, including prominent names such as Honda, Cisco, Toshiba, Bridgestone, University of Pennsylvania, and Hugo Boss.

Freshworks IPO

In 2021, Freshworks achieved a significant milestone by listing on the NASDAQ, marking the first Indian-founder-led VC-funded unicorn SaaS company to go public in the US. The Freshworks IPO, which took place on September 22, 2021, saw the company selling approximately 10% of its stock, totaling about 28.5 million shares, at a listing price of $36 per share.

Mathrubootham statement

"Freshworks is my baby, and over the years I have seen her grow¡ªas a toddler trying to walk, a child growing really fast, and a teenager growing stronger. The emotions running through my mind are similar to a father experiencing his beloved daughter¡¯s marriage, happy and sad at the same time, knowing fully well that she has found the right one and is going to accomplish greater things in life," said Mathrubootham, in a statement to the company's employees.

"As I write to you today, I'm filled with many emotions. The past 14 years have been an incredible journey, one that has seen Freshworks grow from a fledgling startup in Chennai into the global SaaS company that we are today. I¡¯m incredibly 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. This decision was not made lightly and comes with a deep belief in our collective vision and the future of our company. I am thrilled to announce that Dennis Woodside, our President, will be our new CEO," Mathrubootham said.

Headquartered in California, Freshworks maintains a global presence with offices in India, the United Kingdom, France, Australia, and Germany. Despite its international reach, the company remains deeply rooted in its Indian heritage, with Chennai serving as its prominent research and development hub.