The company's Q3 revenue rose by 22% to $186.6 million, surpassing analysts' expectations. The increase in earnings is driven by growing demand for its AI-powered products, such as Freshservice and Freshdesk. Freshworks has revised its annual revenue forecast to between $713.6 million and $716.6 million, up from the previous estimate of $707 million to $713 million.
Key takeaways:
- Freshworks plans to lay off 13% of its workforce, or 660 employees globally, to streamline operations and optimise efficiency.
- The company reported strong third-quarter earnings, driven by increasing demand for its AI-powered products.
- Freshworks expects to incur $11 million to $13 million in restructuring charges during the fourth quarter and the restructuring plan is set to be completed by the end of the fiscal year, December 31, 2024.
- For the third quarter, Freshworks posted a 22% increase in revenue, reaching $186.6 million, and an adjusted profit per share of 11 cents, both surpassing analysts' expectations.