Freshworks’s Q3 loss narrows; raises full-year operating profit guidance to $40M
NASDAQ-listed Freshworks reported a 19% increase in revenue in the July-September quarter compared to last year.
Chennai-based software companysaid its revenue rose 19% to $153.6 million in the July to September quarter, up from $128.8 million in the same quarter last year.
The NASDAQ-listed firm’s narrowed net loss (as per GAAP standard) was at $32.3 million ($0.08 per share) in the third quarter of 2023 compared to $57.3 million ($0.01 per share) in the year-ago period.
Freshworks has also raised its full-year operating profit guidance to $40 million from $28 million forecasted last quarter.
“We delivered another solid quarter of execution as we outperformed our estimates across our key financial metrics and further improved our profitability,” Girish Mathrubootham, CEO and Founder of Freshworks, said in a statement.
The number of customers who contributed more than $5,000 in annual recurring revenue (ARR) stood at 19,551, an increase of 17% compared to last year.
“Our market traction is fueled by continued product innovation that brings generative AI and rapid time to value to companies of all sizes,” Mathrubootham added.
The Software-as-a-Service company expects revenue in the fourth quarter to range between $156.7 million to $159.3 million, with income from operations amounting to $5.5 million to $8.5 million.
Revenue for the full year is expected to lie between $593 million and $595.5 million, with net income per share ranging between $0.23 and $0.25, Freshworks said.
The company added several new customers in the quarter, including ASPCA, Cenveo, Giant Eagle Inc., Kelly Benefits, Qualfon, and Salvation Army Australia.
It also launched an AI-powered customer service suite, which enables self-service bots, agent-led conversational messaging, and automated ticketing management in a single platform.
In August, Freshworks appointed Johanna Jackman as Chief People Officer and Mika Yamamoto as the Chief Customer and Marketing Officer, according to a statement.
Edited by Suman Singh