Freshworks reports reduced net loss in December 2024 quarter and for full year

Freshworks Inc, the Chennai/ US-based provider AI service software, reported reduced net loss of $21 million for the fourth quarter ended December 31, 2024, as against $28 million in the corresponding quarter of 2023. Total revenue was $194.6 million, representing 22 per cent growth compared to total revenue of $160.1 million in the fourth quarter of 2023. The growth was due to an increasing number of customers seeking Artificial Intelligence-powered solutions.

For the full year, net loss declined to $95 million ($137 million) on 21 per cent growth in revenue to $720 million ($596 million). The company expected first quarter 2025 revenue to be in the range of $190 million- $193 million and $809 million-$821 million for the full year.

“Freshworks outperformed its previously provided estimates again in Q4 across all our key metrics, delivering another strong quarter with revenue growing 22 per cent year over year to $194.6 million, operating cash flow margin of 21 per cen, and an adjusted free cash flow margin of 21 per cent,” said Dennis Woodside, Chief Executive Officer & President of Freshworks, in a release.

The number of customers contributing more than $5,000 in annual recurring revenue was 22,558, an increase of 11 per cent year-over-year. Some of the new customers in the quarter include New Balance, Rawlings Sporting Goods, Sophos, Onfido and Mesa Airlines

It appointed Srinivasan Raghavan as Chief Product Officer and Venkitesh Subramanian as Senior Vice-President of Product Management, Customer Experience.

It also announced a new strategic agreement with Unisys, a leading global systems integrator partner, the release said.