Freshworks, Inc. Class A ( (FRSH) ) has released its Q1 earnings. Here is a breakdown of the information Freshworks, Inc. Class A presented to its investors.
Freshworks, Inc. is a global provider of enterprise-grade service software, specializing in enhancing customer and employee experiences across various industries, including media, entertainment, and financial services. The company is known for its innovative use of AI technology in its product offerings.
In its latest earnings report for Q1 2025, Freshworks, Inc. reported a steady revenue growth, reflecting its strong market position and expanding customer base. The company continues to leverage its AI-driven solutions to enhance its service offerings and maintain competitive advantage in the rapidly evolving tech industry.
Key financial highlights from the report include a revenue of $196.3 million for Q1 2025, marking a 19% year-over-year growth. The company also reported a significant increase in non-GAAP income from operations, reaching $46.4 million, up from $40.3 million in the previous quarter. Freshworks’ customer base continues to expand, with over 73,000 customers globally, and a notable increase in large customers contributing to over 60% of total annual recurring revenue.
Freshworks has also demonstrated strong cash flow management, with a free cash flow of $55.4 million, indicating robust liquidity and operational efficiency. The company’s strategic focus on mid-market and enterprise customers has been a key driver of its financial performance, contributing to its sustained growth trajectory.
Looking ahead, Freshworks’ management remains optimistic about the company’s growth prospects, projecting continued revenue growth in the range of 13% to 15% for Q2 2025. The company’s ongoing investment in AI technology and customer-centric solutions positions it well for future expansion and market leadership.