02:03 PM EDT, 07/31/2024 (MT Newswires) -- Freshworks ( FRSH ) delivered strong Q2 results, despite facing a "challenging" environment for small and medium-sized business demand, Oppenheimer said in a note Wednesday.

Freddy AI solutions and IT business showed good results with larger customers and cash generation in the quarter.

The company's product-led growth segment is still evolving, 2024 organic billings growth guidance was slightly reduced due to net revenue retention pressure, Oppenheimer said. Device42's contributions and Q2 revenue gains didn't fully align with the annual revenue forecast.

Freshworks' ( FRSH ) total revenue was $174.1 million, beating estimates by $5.1 million with pro forma operating income of $13.1 million and EPS of $0.08 also exceeding forecasts.

The company added a record 246 new $50,000 plus annual recurring revenue customers and achieved strong margins and cash flow. However, it reduced guidance for 2024 billings growth, below-average customer additions, and lower net revenue retention, Oppenheimer added.

Oppenheimer maintained a perform rating on Freshworks ( FRSH ).

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