SaaS platform Freshworks’ net loss has dropped by 43.5% YoY to $20.1 million in the quarter ended June 2024 from $35.6 million in the corresponding quarter last year.
The Nasdaq-listed company’s revenue went up by 20% to $174.1 million with a free cash flow margin of 19% in the second quarter of 2024 from $145 million in Q2 CY23 on account of growth in sales and customer demand for AI-enabled solutions. The free cash flow by the end of Q2 CY24 was $32.8 million.
The Chennai-based company’s gross profit jumped 21.3% to $145.9 million in Q2 CY24 from $120.2 million in Q2 CY23. The count of customers contributing more than $5000 in ARR was 21,744 in the second quarter of 2024 with a 14% YoY increase.
Kayak, Paul Smith UK, Asian Paints, Davidson Kempner Capital Management, San Diego Unified School District, and Tile Mountain were the major customer additions in the quarter under review.
The SaaS firm is aiming for 18.5-19.5% YoY growth for CY24 with revenue in the range of $707-713 million while a growth in the range of 17-19% YoY is being aimed for the succeeding quarter with revenue in the range of $180-183 million.
Freshworks’ Q2 CY24 reports also highlighted the completion of the acquisition of Device42 as part of its plan to enhance its IT management solution offering for mid-market and enterprises.
