Strong Revenue Growth
Freshworks reported a 15% year-over-year increase in Q3 revenue, reaching $215.1 million, surpassing the high end of previous estimates by approximately 3 points.
Expansion in Customer Base
The company ended the quarter with nearly 75,000 customers, adding significant new clients such as Stellantis, Societe Generale, and Travis Perkins plc.
AI-Driven Growth
Freddy AI continues to be a strong growth driver with AI ARR doubling year-over-year. Freddy Copilot's ARR grew 160% year-over-year, highlighting substantial adoption of AI capabilities.
Employee Experience Segment Growth
The Employee Experience segment achieved over $480 million in ARR, representing a 24% year-over-year growth, with significant contributions from ESM and IT asset management.
Increased Operating Margin
Non-GAAP operating margin expanded to 21%, surpassing estimates by 5 points, and free cash flow margin reached 27%.
Strategic Product Launches
Freshworks announced expansion of Enterprise Service Management access and an upcoming unified CX product experience to drive further adoption.