Freshworks reports 20% annual revenue growth

CHENNAI: Nasdaq-listed SaaS firm Freshworks Inc on Wednesday reported a quarterly revenue of $160 million in October-December- a 19% growth from the same quarter last year on constant currency (CC) terms.

For the full year 2023, Freshworks' revenue came in at $596 million growing 20% year-on-year, beating the company's own earlier guidance. For 2024, Freshworks anticipates revenue to clock a 18-19% growth rate.

The company follows calendar year accounting.

The SaaS firm managed to narrow its quarterly losses as net loss for the December quarter stood at $28 million, down from $55.4 million for the same quarter last year. For the full year 2023, Freshworks clocked an operating profit of $44.5 million- its first operating profit since IPO.

"With the introduction of ChatGPT-4 last year, every company had the chance to reimagine its use of the latest AI technology. One of our strategic advantages in this moment was our access to high-quality talent in India. Our product and engineering teams were able to quickly innovate on our product roadmap," Girish Mathrubootham, founder and CEO, Freshworks told analysts on the earnings call.


Freshworks announced that its CRO Pradeep Rathinam is leaving the company at the end of the month and Abe Smith is joining as the chief of global field operations this week. Smith has sales experience of nearly 25 years across Zoom, Oracle, and Cisco.

The number of customers contributing more than $5,000 in ARR ending the fourth quarter 2023 was 20,261, an increase of 14% YoY. Freshworks' net dollar retention rate (NRR) was 108%.

Cineworld, Flexsteel, Grant Thornton, Hitachi Construction, Tata Consumer Products and others were a few new customers added in the quarter.