Freshworks beats fourth quarter revenue estimates on AI-powered demand

BRIDGESTONE

06/02/2024 21:08

Feb 6 (Reuters) - Software firm Freshworks  FRSH.O  beat
Wall Street estimates for fourth-quarter revenue on Tuesday,
driven by a surge in demand for its AI-powered customer support
and IT services products.
    Demand for Freshworks' generative artificial intelligence
(GenAI) integrated products has risen as businesses seek to
automate their workflow using inexpensive AI solutions.
        Freshworks, which counts Nucor  NUE.N , S&P Global
 SPGI.N  and Bridgestone  5108.T  as its clients, offers an IT
service management product called Freshservice, which assists
businesses with employee onboarding and management.
    "We continue to see growth, particularly in larger accounts.
While our history was in SMB (small-and-mid-sized
businesses)....But today about 60% of our revenue is coming from
larger accounts," Dennis Woodside, president at Freshworks told
Reuters.
    The San Mateo, California-based company posted
fourth-quarter revenue of $160.1 million, beating market
estimates of $158.5 million, according to LSEG data.
    Freshworks, which competes with larger rivals such as
Salesforce  CRM.N  and Zendesk, expects 2024 revenue between
$703.5 million and $711.5 million, the midpoint of which is
above analysts' average estimate of $705.4 million.
    Excluding items, Freshworks said it expects annual profit
per share to be between 29 cents and 31 cents, compared with
estimates of 31 cents.
    The company expects first-quarter revenue in the range of
$162.5 million to $164.5 million and adjusted earnings per share
in the range of 7 cents to 8 cents, while analysts expect
quarterly revenue of $163.2 million and adjusted earnings per
share of 6 cents.
       
  

 (Reporting by Jaspreet Singh in Bengaluru; Editing by Tasim
Zahid)
 ((Jaspreet.Singh@thomsonreuters.com; https://twitter.com/i_jass;))