The poster child of Indian software-as-a-service (SaaS) companies hit an intraday high of $53.35 per share on November 2, valuing it at $13.56 billion, about $1.4 billion more than Zendesk’s $12.1 billion. However, the stock has dropped to $35.22 as of December 1, eroding its market cap by $5.45 billion.

The Chennai- and San Mateo-based company declared its
third-quarter results on November 2, reporting net losses at $0.04 per share against an estimated $0.10 per share. Revenue rose 46% to $96.6 million.

Free cash flow was a negative $4.2 million compared to $10.3 million in the year-ago period.

“We beat our earnings number (and) we beat our revenue number,” cofounder and CEO Girish Mathrubootham said.

The company had estimated that its net dollar retention — the amount of revenue recorded from existing clients from the previous year – would be far below 118%, he said. “But there was strong expansion across our existing customers, so we still had 117% net dollar retention. Overall, I think we’re pretty happy with the results of Q3,” Mathrubootham said.

The company has raised its revenue forecast for the fourth quarter and the full year. It now expects revenue in the range of $99-$101 million in the fourth quarter and $364.5-$366.5 million in 2021.

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which listed on the tech-heavy Nasdaq in September, follows a January-December fiscal year.

Investors have increasingly backed cross-border companies amid a record-breaking year of fundraising for SaaS firms such as Postman and BrowserStack, which have raised capital at much higher valuations compared to their previous rounds, signalling the premium investors are willing to ascribe to these companies.

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