By Jaspreet Singh
(Reuters) – Freshworks forecast annual revenue and profit above Wall Street estimates on Tuesday, betting on growing demand for its enterprise software for managing digital operations, sending its shares up 6% in extended trading.
The company projected its first-quarter revenue slightly below market expectations but reported upbeat revenue and adjusted profit per share for the fourth quarter.
Clients turn to artificial intelligence-powered software offered by companies such as Freshworks, ServiceNow and Salesforce to manage their IT services and automate certain business operations.
“Our AI is easy to use, easy to get up and running. We have customers that are launching our AI products in an hour,” CEO Dennis Woodside said in an interview.
“We had one customer come to us, who had been a 13-year customer of ServiceNow. They are a hardware manufacturer,” Woodside added, referring to a competitive edge over rivals, particularly in the mid-market segment.
Freshworks offers an AI-driven chatbot, Freddy AI, designed to help clients resolve customer inquiries, automate routine tasks and provide tailored solutions.
Freshworks forecast its full year 2025 revenue between $809 million and $821 million, the midpoint of which was above analysts’ average estimate of $813 million, according to data compiled by LSEG.
The company projected annual adjusted profit per share of 52 cents to 54 cents, above estimates of 52 cents.
The midpoint of the first-quarter revenue forecast of $190 million to $193 million was slightly below estimates of $192.2 million.
Freshworks expects adjusted profit per share forecast of 12 cents to 14 cents for the first quarter, above estimates of 12 cents.
Revenue for the fourth quarter ended December 31 grew 22% to $194.6 million, beating estimates of $189.4 million. Its adjusted profit per share of 14 cents in the quarter also exceeded estimates of 10 cents.
(Reporting by Jaspreet Singh in Bengaluru; Editing by Mohammed Safi Shamsi)
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