People at a conference table in an office.Freshworks published its Q1 results on Nov. 2, posting sales and earnings for the period that came in ahead of the market’s expectations.

The company posted a non-GAAP (adjusted) loss of $0.04 on revenue of $96.61 million in the period, while the average analyst estimate had called for a $0.10 per share loss on sales of $90.85 million.

The enterprise software specialist delivered top- and bottom-line beats, but performance was less inspiring along other key fronts.

Freshworks sales rose 46% year over year in Q3. The company’s net-dollar-based retention rate for the period came in at 117%, which means that existing clients increased their spending 17% compared to the prior-year period.

Despite recording sales and earnings that topped the market’s expectations, the company saw its free cash flow slip to a $4.2 million loss in the period — swinging from positive free cash flow of $10.3 million in the prior-year period.

Freshworks also had a partial stock lockup expiration on Nov. 4, freeing insiders to sell some of their shares; that lockup expiration may have created some extra selling pressure that helped send the company’s share price lower as the month progressed.

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