SUMMARY
- Freshworks has announced a 22% increase in revenue, reaching $186.6 million in Q3 of 2024.
- The company managed to reduce its losses by 3.55% to $29.9 million.
- The company’s total operating revenue rose to $24 million.
SaaS platform Freshworks has announced a 22% increase in revenue, reaching $186.6 million in Q3 of 2024 from $153.6 million in the same period last year.
The Nasdaq-listed company managed to reduce its losses by 3.55% to $29.9 million during the quarter, down from $31 million in 2023.
Dennis Woodside, CEO & President of Freshworks, said, “Freshworks delivered a strong third quarter, with revenue growing 22% year over year to $186.6 million, net cash provided by operating activities margin improving to 23%, and free cash flow margin improving to 21%.”
He added, “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.”
The California-headquartered company’s total operating revenue rose to $24 million from $17.4 million in the third quarter of 2023.
In May 2024, the firm announced the promotion of Dennis Woodside to the position of CEO, while Girish Mathrubootham moved into the role of Executive Chairman.
The company saw an increase in its overall operating costs to $195 million in the third quarter of 2024 from $166 million in the same period the previous year.
The company also noted a surge in its free cash flow to $40.1 million for the third quarter of 2024 from $22.1 million in the third quarter of 2023.
As of September 30, 2024, the company had $1.05 billion in cash, cash equivalents, and marketable securities. The company’s net dollar retention rate was 107%, up from 106% in the second quarter of 2024 while it was 108% in the third quarter of 2023.
The number of customers contributing more than $5,000 in annual recurring revenue (ARR) increased by 14% YoY, reaching 22,359.
Moreover, Freshworks added several new clients to its portfolio, such as Republic Airways, City of Bellevue, ChampionX, University of Oxford, Sparebank 1, and TechStyle Fashion Group, among others.
Freshworks also revealed that its Board of Directors has given the nod to a stock repurchase program, allowing the company to buyback as much as $400 million in outstanding Class A common stock.
Freshworks’ stock price fell to $13.09, marking a 64% drop from its IPO price of $36 per share in 2021.
The company concluded the quarter with the launch of Freddy AI Agent, a user-friendly autonomous service agent aimed at improving both customer experience (CX) and employee experience (EX).
Agents such as Freddy AI can be set up in minutes and handle 45% of customer support requests and 40% of IT service inquiries, as stated by the company.
In September, Freshworks brought on board former ServiceNow executive Murali Swaminathan as its new Chief Technology Officer. Notably, after nearly five years, the company’s Chief Product Officer Prakash Ramamurthy decided to step down to explore new professional opportunities.
An SEC filing on August 5 announced the selection of Philippa Lawrence as Chief Accounting Officer. Pradeep Rathinam, who had been serving as Chief Revenue Officer, departed from the company in February.
