Freshworks raises FY25 guidance on AI momentum, reports 18% rise in Q2 revenue
The software-as-a-service (SaaS) major also reported a rise in adjusted operating income to $44.8 million during the second quarter compared to $13.1 million in the same period last year.
Bhuvana Kamath
Wednesday July 30, 2025 , 2 min Read
on Wednesday raised its full year revenue guidance on the back of increasing customer adoption. The company now expects FY25 revenue to be between $822.9 million to $828.9 million.
The US-listed firm had in April said it expected FY25 revenue to be within the range of $815.3 million to $824.3 million. It also said it is expecting its adjusted net income from operations to be between $153 - $157 million, compared to prior guidance of $139.5 - $147.5 million.
On a quarterly basis, the company reported a 18% jump in total revenue to $204.7 million. “We believe our strong momentum through the first half of the year reflects that businesses are increasingly turning to Freshworks to reduce complexity. They want AI-powered employee and customer service solutions that are fast to implement, easy to use, and built to deliver results,” said Dennis Woodside, Chief Executive Officer & President of Freshworks.
The company also saw the number of customers contributing more than $5,000 in annual recurring revenue grow to 23,975–a 10% year-on-year jump.
Additionally, the Girish Mathrubootham-founded company reported a rise in net profit for the period ended June 30. On an adjusted basis, the company reported $44.8 million. On a non-adjusted basis, the firm narrowed its loss from operations to $8.7 million compared to $43.8 million in the year-ago period.
During the quarter, the company was able to narrowly cut down on its operating expenses, primarily driven by lower headcount following the restructuring it had undertaken in November 2024. The company’s total operating expenses stood at $182.2 million compared to $189.7 million in Q2 2024.
In November, the company laid off 660 employees to enhance its operational efficiency and focus on key strategic priorities.
The net dollar retention (NDR) rate stood flat at 106% compared to year-ago quarter. NDR is a key performance metric that measures how well a company retains and expands revenue from existing customers over time.
Edited by Megha Reddy