July 29 (Reuters) - Freshworks ( FRSH ) raised annual

revenue forecast on Tuesday, betting on growing demand for its

artificial intelligence-powered software designed to manage IT

services.

Businesses are increasingly adopting software solutions from

companies such as Freshworks ( FRSH ), ServiceNow ( NOW ) and Salesforce ( CRM )

to automate repetitive tasks and streamline customer

interactions.

The company now expects revenue for the year 2025 to be

between $822.9 million and $828.9 million, up from its previous

forecast of $815.3 million to $824.3 million.

Analysts, on average, project annual revenue of $819.6

million, according to data compiled by LSEG.

Freshworks ( FRSH ), which serves over 74,000 clients, including

American Express ( AXP ) and Databricks, offers products that

assist clients with employee onboarding and management.

The company said more than 5,000 customers are now paying

for its Freddy AI products, which help resolve customer

inquiries, automate routine tasks and provide tailored

solutions.

It also offers its products to U.S. state and local

governments.

"We have over 1,000 government entities currently working on

our platform," CEO Dennis Woodside said in an interview.

Freshworks ( FRSH ) reported second-quarter revenue of $204.68

million, surpassing analysts' estimates of $198.83 million.

Adjusted profit per share of 18 cents for the quarter ended June

30 also exceeded analysts' expectations of 11 cents.

The company's third-quarter forecasts for revenue and

adjusted profit per share came in line with analysts' estimates.

It expects quarterly revenue between $207 million and $210

million and adjusted profit between 12 cents and 14 cents per

share.