Nov 6 (Reuters) - Freshworks ( FRSH ) raised its annual

revenue and profit forecasts on Wednesday following upbeat

third-quarter results, as clients turn to the company's

AI-driven products to manage their IT services.

Businesses are digitizing their operations with

artificial intelligence tools, which is boosting demand for

companies such as Freshworks ( FRSH ).

The San Mateo, California-based company provides an IT

service management tool called Freshservice that helps

businesses with employee onboarding and management. It also

offers a customer service software, Freshdesk, designed to

deliver fast solutions to customer issues.

The company has more than 68,000 customers, including

Databricks, American Express ( AXP ), Nucor ( NUE ) and Sony ( SONY )

. It competes with companies such as Salesforce ( CRM )

and ServiceNow ( NOW ).

Freshworks ( FRSH ) now expects annual revenue to be between $713.6

million and $716.6 million, up from its prior expectations of

$707 million to $713 million.

The company also raised its annual adjusted profit per share

forecast to a range of 38 cents to 39 cents, up from its

previous forecast of 32 cents to 34 cents.

The software firm's revenue rose 22% to $186.6 million for

the third quarter ended Sept. 30, compared with analysts'

average estimate of $181.6 million, according to data compiled

by LSEG.

Adjusted profit per share of 11 cents for the third quarter

also beat estimates of 8 cents.

Freshworks ( FRSH ) forecast fourth-quarter revenue to be between

$187.8 million and $190.8 million, the midpoint of which was in

line with estimates.