Freshworks Raises Revenue and Profit Forecasts as AI Drives Demand for IT Services
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On Thu, 7 Nov, 8:02 AM UTC
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Freshworks raises annual revenue, profit forecasts as AI boosts demand
(Reuters) - Freshworks 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. 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, Nucor and Sony. It competes with companies such as Salesforce and ServiceNow. Freshworks 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 forecast fourth-quarter revenue to be between $187.8 million and $190.8 million, the midpoint of which was in line with estimates. (Reporting by Jaspreet Singh in Bengaluru; Editing by Mohammed Safi Shamsi)
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Freshworks Raises Annual Revenue, Profit Forecasts as AI Boosts Demand
(Reuters) - Freshworks 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. 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, Nucor and Sony. It competes with companies such as Salesforce and ServiceNow. Freshworks 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 forecast fourth-quarter revenue to be between $187.8 million and $190.8 million, the midpoint of which was in line with estimates. (Reporting by Jaspreet Singh in Bengaluru; Editing by Mohammed Safi Shamsi)
[3]
Freshworks raises annual revenue, profit forecasts as AI boosts demand
Nov 6 (Reuters) - Freshworks (FRSH.O), opens new tab 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. 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.N), opens new tab, Nucor (NUE.N), opens new tab and Sony (6758.T), opens new tab. It competes with companies such as Salesforce (CRM.N), opens new tab and ServiceNow (NOW.N), opens new tab. Freshworks 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 forecast fourth-quarter revenue to be between $187.8 million and $190.8 million, the midpoint of which was in line with estimates. Reporting by Jaspreet Singh in Bengaluru; Editing by Mohammed Safi Shamsi Our Standards: The Thomson Reuters Trust Principles., opens new tab
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Freshworks, a provider of AI-driven IT and customer service management tools, has increased its annual revenue and profit forecasts following strong third-quarter results, reflecting the growing demand for AI-powered business solutions.
Freshworks Boosts Forecasts Amid AI-Driven Demand
Freshworks Inc., a San Mateo, California-based software company, has raised its annual revenue and profit forecasts following strong third-quarter results. The company's performance reflects the growing demand for AI-driven products in IT services management 1.
Financial Performance and Forecasts
Freshworks reported impressive financial results for the third quarter ended September 30:
- Revenue rose 22% to $186.6 million, surpassing analysts' estimates of $181.6 million 2
- Adjusted profit per share reached 11 cents, exceeding expectations of 8 cents
- Annual revenue forecast increased to between $713.6 million and $716.6 million, up from previous projections of $707 million to $713 million
- Annual adjusted profit per share forecast raised to 38-39 cents, from the earlier 32-34 cents range 3
For the fourth quarter, Freshworks anticipates revenue between $187.8 million and $190.8 million, aligning with market estimates.
AI-Driven Products and Services
Freshworks' success is attributed to its AI-powered offerings:
- Freshservice: An IT service management tool that facilitates employee onboarding and management
- Freshdesk: Customer service software designed for swift issue resolution
These products cater to businesses seeking to digitize operations with artificial intelligence tools, a trend that has significantly boosted demand for Freshworks' services 1.
Market Position and Competition
Freshworks has established a strong presence in the IT services sector:
- Over 68,000 customers, including prominent names like Databricks, American Express, Nucor, and Sony
- Competes with industry giants such as Salesforce and ServiceNow 3
The company's growth reflects the broader trend of businesses adopting AI-driven solutions to enhance their IT infrastructure and customer service capabilities.
Industry Implications
Freshworks' performance indicates a robust demand for AI-integrated business solutions, particularly in IT service management and customer support. This trend underscores the increasing reliance on AI technologies across various industries to streamline operations, improve efficiency, and deliver better customer experiences.
Reference
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