Overview
- Freshworks reported Q1 revenue of $228.6 million, up 16% year over year, with $41 million in non‑GAAP operating income and $55.8 million in free cash flow.
- The Employee Experience business grew annual recurring revenue 27% to more than $540 million as larger upmarket deals set company records.
- AI adoption accelerated as Freddy AI Copilot customers rose more than 80% and management said over half of new code now comes from AI tools.
- The company will cut about 11% of its workforce with roughly $8 million in one‑time charges to be booked mostly in the second quarter.
- Freshworks authorized a $400 million share buyback and set a goal to grow adjusted free cash flow per share at least 20% a year for the next three years.