Thu Nov 07 06:25:52 UTC 2024: ## Freshworks Reports Strong Q3 Revenue Growth, Narrowing Net Loss

**Bengaluru, India – October 26, 2024** – Freshworks Inc., the Nasdaq-listed Indian SaaS major, has announced robust third-quarter results, with a 21.4% surge in total revenue reaching $186.6 million, compared to $153.6 million in the same period last year. This growth was primarily driven by increasing customer adoption of their AI-powered products.

While the company’s consolidated net loss narrowed by 3.5% year-on-year to $29.95 million, it did widen by over 48% quarter-on-quarter from $20.1 million in Q2.

Freshworks CEO and president, Dennis Woodside, highlighted the company’s strong revenue growth and improvement in operating margins. “We continue to see mid-market and enterprise companies choose Freshworks as the AI-powered service platform that enables them to scale with exceptional customer and employee experiences,” he said.

The company’s Q3 saw a significant rise in gross profit, climbing 23.16% to $156.76 million from $127.28 million in the same quarter last year. However, total operating expenses also increased to $195 million, up from $166 million in Q3 2023.

Freshworks witnessed a 14% year-on-year increase in the number of customers contributing over $5,000 in annual recurring revenue (ARR), reaching 22,359 during the quarter. The company added over 800 new customers, bringing the total count to 69,600.

Looking ahead, Freshworks aims for Q4 2024 revenue in the range of $187.8-$190.8 million, representing a 17-19% year-on-year growth. For the full year 2024, the company projects revenue between $713.6-$716.6 million, marking a 20% year-on-year growth.

Furthermore, Freshworks’ board has approved a stock repurchase program of up to $400 million of the company’s outstanding Class A common stock. This move signifies confidence in the company’s future growth and value.

Read More