Freshworks sees 21% YoY revenue surge, projects up to $820 million in 2025
Nasdaq-listed software firm Freshworks has announced an impressive financial performance for 2024, with consolidated revenue reaching $720 million, reflecting a nearly 21% year-on-year growth. This surge in revenue is largely driven by the company’s continued ability to attract new customers and the rising demand for its AI-powered solutions. As businesses increasingly turn to AI to enhance customer engagement and support, Freshworks has positioned itself as a leader in providing innovative software solutions, capitalizing on this growing market trend.
The company’s operating profit saw a substantial increase, jumping to $99 million in 2024, more than doubling the $44.5 million it reported in 2023. This is especially noteworthy since 2023 marked Freshworks' first full year of operating profit since it went public on the Nasdaq. This milestone highlights the company’s financial strength and solidifies its position in the competitive SaaS (Software-as-a-Service) industry. The steady improvement in profitability underscores Freshworks' effective business strategy and its ability to deliver sustainable growth.
In the final quarter of 2024, Freshworks exceeded expectations with a remarkable 22% year-over-year growth in revenue, reaching $194.6 million. The company’s operating profit for Q4 was $40.3 million, further demonstrating its strong financial performance. This trend of steady revenue growth was also evident in the third quarter, where Freshworks posted a 22% increase in revenue, totaling $186 million. The company’s ability to maintain this momentum in consecutive quarters showcases its resilience and adaptability in a rapidly evolving market.
Sectoral Indices
| (USD) | Dec 2024 | Y/Y |
|---|---|---|
| Revenue | 19.46Cr | |
| Net income | -2.19Cr | |
| Diluted EPS | -0.07 | |
| Net profit margin | -11.26% | |
| Operating income | -1.2Cr | |
| Net change in cash | 22.92Cr | |
| Cash on hand | - | |
| Cost of revenue | 2.95Cr |
Looking ahead, Freshworks is projecting continued growth in 2025, with revenue expected to range between $800 million and $820 million. The company’s optimistic outlook reflects confidence in its business model and the ongoing demand for its customer engagement solutions. With the increasing reliance on AI technology across industries, Freshworks is well-positioned to continue capitalizing on these market opportunities, further expanding its global customer base.
Freshworks' success in 2024 underscores the company’s strong growth trajectory and its potential for continued success in the years ahead. As businesses increasingly prioritize AI-driven solutions, Freshworks is poised to remain a key player in the SaaS industry, with its innovative offerings and commitment to customer satisfaction fueling its growth. With the projections for 2025 pointing toward continued revenue increases, Freshworks’ future appears bright as it expands its market presence and continues to meet the evolving needs of its customers.