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Freshworks Lifts Outlook After Q3 Beat as Loss Narrows

Momentum reflects growing adoption of Freddy AI tools, with larger deals featuring Device42.

Overview

  • Revenue rose 15% year over year to $215.1 million in Q3, topping estimates, with adjusted EPS of $0.16 beating forecasts.
  • Consolidated net loss shrank 84% to $4.7 million, and GAAP operating loss improved to $7.5 million from $38.9 million a year earlier.
  • The company guided Q4 revenue to $217 million–$220 million, above the LSEG consensus midpoint, and projects 12%–13% year-over-year growth.
  • Freshworks said about half of its large Q3 deals included Device42, and reported Freddy AI products doubled annual recurring revenue over the past year.
  • Freshservice for Business Teams is now a standalone offering with ARR above $35 million after doubling year over year, as customers paying over $5,000 ARR reached 24,377, up 9%.