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Freshworks forecasts annual revenue above estimates on steady software demand
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Freshworks forecasts annual revenue above estimates on steady software demand
Feb 11, 2025 1:43 PM

Feb 11 (Reuters) - Freshworks ( FRSH ) 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 ( FRSH ), ServiceNow ( NOW ) and

Salesforce ( CRM ) 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 ( NOW ). They are a hardware manufacturer,"

Woodside added, referring to a competitive edge over rivals,

particularly in the mid-market segment.

Freshworks ( FRSH ) offers an AI-driven chatbot, Freddy AI, designed

to help clients resolve customer inquiries, automate routine

tasks and provide tailored solutions.

Freshworks ( FRSH ) 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 ( FRSH ) 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.

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