Freshworks sets sights on $1 billion in revenue by 2026

When it comes to outlook the company estimates to get  $1 billion in revenue by 2026, with a strategic focus on attracting larger and higher-yielding customers.

In comparison, Freshworks' direct competitor, Zoho, had already achieved $1 billion in revenue in 2022.

Additional financial metrics showed that Freshworks' GAAP (Loss) from Operations improved to $38.7 million from a loss of $58.3 million in the third quarter of 2022. The company reported a net loss of $32 million for the quarter, a notable improvement from the $57 million loss in Q3 of 2022.

Freshworks' free cash flow also improved, reaching $22.1 million compared to a negative free cash flow of $7.2 million in the same quarter in 2022. The company maintained a robust financial position with $1.16 billion in cash, cash equivalents, and marketable securities as of September 30, 2023.

Notably, Freshworks emphasized its commitment to monetizing AI offerings. The company plans to monetize the capabilities of its AI chat, Freddy AI, starting in the first quarter of the following year.

Looking ahead, Freshworks projected its 2023 revenue to range from $593 million to $596 million, with a marginal growth expected in Q4, estimated at $156 million to $159 million. The company also revised its non-GAAP operating income guidance to a range of $38.5 million to $41 million, up from its previous forecast of $24 million to $32 million. Additionally, Freshworks increased its free cash flow estimates to $75 million for the full year, reflecting an increase of $15 million.

(With agency inputs)