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Freshworks Inc, the Chennai/US-based SaaS company, has reported a reduced net loss of $42.66 million for the first quarter as against $49.05 million in the same quarter last year. Revenue was $137.7 million, a 20 per cent increase when compared with the first quarter of 2022.
The Nasdaq-listed company beat its own revenue expectations during the first quarter. While announcing the financial results for the fourth quarter ended December 31, 2022, the company expected to report Q1 2023 revenue in the range of $133 million to $135 million. However, it ended up with increased revenue of $137.7 million.
Similarly, the company guided to end 2023 with revenue in the range of $575 million to $590 million but has revised it upwards to $580 million to $592.5 million.
“Freshworks had a strong quarter of execution in Q1,” said Girish Mathrubootham, CEO and Founder, Freshworks, in a release. “We exceeded our financial estimates for revenue growth and delivered our first quarter of non-GAAP operating profit as a public company. More companies are taking advantage of the opportunity to buy software that is designed to scale to meet their IT and customer needs.”
Also read: Chennai-based Freshworks and Chargebee have minimal exposure to SVB
The number of customers contributing more than $5,000 in ARR was 18,441, an increase of 18 per cent year-over-year. The company defines ARR as the sum total of the revenue it would contractually expect to recognise over the next 12 months from all customers at a point in time, assuming no increases, reductions or cancellations in their subscriptions.
During the first quarter, the company added customers like Fila, Johnsonville, Los Angeles Dodgers, Smyths Toys, Sonata Software, and The City of Escondido, says a release.
The company named Pradeep Rathinam as the company’s Chief Revenue Officer. It also inducted new leaders, including Siddhartha Agarwal as Senior Vice President of Product Strategy & Operations; Shafiq Amarsi as Senior Vice President of GTM Strategy and Operations; Doug Farber as Senior Vice President of Global Channels and Alliances; Murali Krishnan as Senior Vice President of Customer Experience; and Sandie Overtveld as Senior Vice President of Sales in APJ and MEA.
Also read: Freshworks’ co-founder and CTO makes a quiet exit
Freshworks also announced upcoming GPT-based conversational enhancements to Freshworks’ natively-built AI-powered assistant, Freddy, the release said.
On the Nasdaq, the company’s stock price on Tuesday night closed at $12.85, down by 3.24 per cent.
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