What happened

Shares of Freshworks (FRSH -0.76%) got crushed Friday. The software-as-a-service stock ended the daily trading session down 18% due to turbulence for the broader market and weaker-than-expected guidance that arrived with the company's fourth-quarter results. 

Freshworks published its fourth-quarter results after the market closed on Thursday, reporting a non-GAAP (adjusted) loss per share of $0.06 on revenue of $105.5 million. The loss for the quarter was in line with the market's expectations, but sales in the period actually topped the average analyst estimate by $5.16 million.

Even so, the company guided for mounting losses in the current fiscal year, and the news arrived in conjunction with concerning reports that Russia is likely to invade Ukraine. 

A chart line and arrow moving down.

Image source: Getty Images.

So what

Reports suggesting that Russia has decided to move forward with an incursion into Ukrainian territory rattled the market today, and the unfolding situation played a big role in the sell-off for Freshworks stock. The S&P 500 and Nasdaq Composite indexes ended the day down 1.9% and 2.8%, respectively. 

Freshworks managed to grow revenue 44% year over year in the fourth quarter, but the company's adjusted loss from operations expanded to $10.7 million from $2.3 million in the prior-year period. It also looks like losses will expand significantly this year.

Management's midpoint guidance calls for an adjusted operating loss of $11.5 million on revenue of $108 million in the first quarter. For the full-year period, the company expects a midpoint adjusted operating loss of $52.5 million on revenue of $490.75 million.

Now what

The stock has slid roughly 61% since market close on the day of its initial public offering in September.

FRSH Chart

FRSH data by YCharts.

The company now has a market capitalization of roughly $5.1 billion and is valued at approximately 10.6 times this year's expected sales. Freshworks is still growing sales at an impressive clip, and it could have a long runway for expansion in the enterprise software space, but the market's current aversion to growth-dependent software stocks suggests its shares could see more bumpy trading in the near term.