Freshworks sees 20% jump in revenue to $174M in Q2
The firm's total income from operations amounted to $13.1 million, up from $11.8 million in the second quarter of 2023.
Software-as-a-Service (SaaS) major reported a 20% increase in revenue at $174.1 million for the second quarter ending June 30, 2024, up from $145 million in the same period last year.
“Freshworks delivered a solid Q2, growing revenue to $174.1 million with a free cash flow margin of 19%,” said Dennis Woodside, CEO & President of Freshworks.
He attributed the strong quarter to the company's financial discipline and its ability to meet the needs of customers with AI-powered solutions. "With clear strategic priorities in place, we are well positioned to seize the massive opportunity in front of us,” he added.
The Nasdaq-listed company's GAAP loss was at $43.8 million in the second quarter as against a loss of $43.3 million in the second quarter of 2023.
Freshworks' total income from operations amounted to $13.1 million, up from $11.8 million in the second quarter of 2023.
The company reported a rise in its total operating expenses to $189 million in Q2 of 2024, up from $163 million in the corresponding period last year. Its free cash flow was $32.8 million for the second quarter of 2024, up from $18.1 million a year earlier.
The company ended the quarter with strong cash reserves, reporting $1.02 billion in cash, cash equivalents, and marketable securities.
Its net dollar retention rate stood at 106%, maintaining the same level as the first quarter of 2024, but down from 108% in the second quarter of 2023. Net Dollar Retention (NDR) is a key performance metric which measures how well a company retains and expands revenue from existing customers over time.
The number of customers contributing over $5,000 in annual recurring revenue (ARR) grew 14% year-over-year, reaching 21,744.
Looking ahead, the firm has adjusted its revenue forecast for the full year, anticipating it to range between $180 million and $183 million for the third quarter of 2024.
In addition, Freshworks welcomed new customers to its community, including Kayak, Davidson Kempner Capital Management, Asian Paints, Paul Smith UK, Tile Mountain, and San Diego Unified School District, among others.
The firm ended the quarter with more than 1,200 customers using Freddy Copilot and 900 customers utilising Freddy Self Service.
In June, Freshworks launched a new data center in the UAE, in partnership with (AWS), to support global expansion and foster job creation and digital skills development in the region.
Among the new leadership appointments are Ashwin Ballal as Chief Information Officer, Laura Padilla as Senior Vice President of Channels & Alliances, Wes Rudsenske as Senior Vice President of GTM Strategy & Operations, and Ian Tickle as Senior Vice President and General Manager for Europe.
Edited by Megha Reddy