Freshworks (NASDAQ:FRSH) stock is falling on Thursday after the software development company announced that founder and CEO Girish Mathrubootham is stepping down.

This will have Mathrubootham leave the CEO role to take over as the executive chairman of Freshworks. That has Dennis Woodside taking over as the next president and CEO of the company.

News of Mathrubootham giving up the CEO position is pulling FRSH stock down today despite a strong Q1 earnings report. That includes adjusted EPS of 10 cents and revenue of $165.1 million. Both of these surpassed Wall Street’s estimates of 8 cents per share and $163.52 million in revenue.

Freshworks also reported improved liquidity in Q1 2024 at $40.6 million. That’s a major increase compared to its $11.5 million in liquidity reported in the first quarter of 2023.

FRSH Stock Falls on Guidance

Unfortunately, Freshworks’ outlook for Q2 includes revenue ranging from $168 million to $170 million. That’s going to miss Wall Street’s estimate of $172.08 million for the period.

Adding to that is the company’s 2024 revenue guidance of $695 million to $705 million. Yet again, that wouldn’t reach analysts’ revenue estimate of $708.35 million for the year.

FRSH stock is down 29% as of Thursday morning. Investors will note the stock was already down 17.4% year-to-date when markets closed yesterday.

There are even more stock market stories traders will want to read about today below!

We have all of the biggest stock market news that investors need to know about on Thursday! That includes everything happening with Fastly (NYSE:FSLY) stock, Carvana (NYSE:CVNA) stock and Emergent BioSolutions (NYSE:EBS) stock this morning. You can catch up on all of that news at the following links!

More Stock Market News for Thursday

On the date of publication, William White did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.