Freshworks, the Chennai/US-based software company, has brought down its loss to $28 million for the fourth quarter ended December 2024 as against a net loss of $55 million in the same period last year. Revenue rose 20 per cent to $160 million ($133 million).

For the full year of 2023, the company reported a reduced net loss of $137 million as against $232 million in the corresponding year. Revenue increased 20 per cent to $596 million ($497 million).

“At Freshworks, we delivered a strong finish to the year, outperforming our financial estimates across the board in Q4,” said Girish Mathrubootham, CEO and Founder of Freshworks. “2023 was a defining year for us. We unleashed the power of the latest generative AI across our product portfolio to deliver tangible value for our customers. The refinements to our go-to-market strategy helped us win more upmarket deals and we improved our business efficiency to generate $78 million in free cash flow for the year.”

The number of customers contributing more than $5,000 in ARR (annual recurring revenue) ending in the fourth quarter of 2023 was 20,261, an increase of 14 per cent year-over-year.

Some of the clients added in the fourth quarter included Cineworld, Flexsteel, Grant Thornton, Hitachi Construction, Klöckner & Co, Porsche eBike Performance GmbH and Tata Consumer Products, said a release.

Guidance

For Q1 2024, the company expects revenue to be in the range of $162.5 million and $164.5 million - an 18 per cent to 19 per cent increase. The full-year revenue is expected to be $703.5 million - $711.5 million - a Y-o-Y growth of 18 per cent - 19 per cent, the release said.

Freshworks in the release said it has appointed Abe Smith as its Chief of Field Operations. He was most recently the Head of International at Zoom where he scaled the sales of the organisation globally across EMEA, JAPAC and LATAM. Before that, he was the President of EMIA (Europe, ME, India, Africa) at Cision, Group VP of Oracle GSU (Oracle Global Sales Unit - Marketing Cloud), and held multiple sales roles at Cisco WebEx for eight years, according to information in the company’s website.

Organisational changes

Pradeep Rathinam, Chief Revenue Officer at Freshworks, has quit. Before joining Freshworks, Rathinam served as the CEO of AnsweriQ Inc, an AI-based customer service company, from its founding in 2017 through its acquisition by Freshworks in 2020.

Dennis Woodside, President, said Rathinam would be departing Freshworks at the end of this month. Pradeep stepped up to lead and stabilise the company’s go-to-market teams during a transition period and delivered a strong Q4 to finish out the year. After joining the company in 2020, Pradeep was appointed as the company’s Chief Customer Officer and later the CRO, he said in a call with analysts while discussing the Q4 results.

Recently, Mika Yamamoto joined the company as Chief Customer and Marketing Officer to drive greater inbound activity, including responsibility for customer support, SMB and commercial sales. Under her leadership, the team will drive inbound product-led growth motion, said Woodside.

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