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.