Freshworks says it clocked the highest number of new deals in any one quarter
Freshworks exceeded the annual recurring revenue of $500 million and posted improved business efficiency with $7.2 million in net cash from operating activities.
Shares of Freshworks Inc, a leading US-based software-as-a-service (SaaS) company, which witnessed a rout in recent sessions, have recovered in the past two trading days. The company announced the highest number of new deals in any one quarter for the year ending December 31, 2022.
The IT major’s revenue surged 26 percent to $133.2 million in the December quarter from the year-ago period. The company’s full-year revenue stood at $498 million, a 34 percent year-on-year growth and 37 percent increase adjusted for constant currency.
Freshworks exceeded the annual recurring revenue of $500 million and posted improved business efficiency with $7.2 million in net cash from operating activities and $4 million of free cash flow in the quarter under focus.
The Nasdaq listed company said that in the fourth quarter, it added approximately 1,800 new customers and ended up with more than 63,400 total customers. It was the highest new business quarter ever for the company.
The company highlighted that the number of customers contributing over $5,000 in Annual Recurring Revenue (ARR) rose by 20 percent year-on-year to 17,722 and by 21 percent on adjusting for constant currency.
Its growth was driven by product innovation, expansion, new business, and a focus on operating efficiency.
“Freshworks capped off a strong finish to the year with revenue growing 30% on a constant currency basis in Q4,” said Girish Mathrubootham, CEO and Founder of Freshworks.
He added that despite the macroeconomic uncertainty throughout the year, the company remained focused on product innovation, expansion and new business, which drove its revenue growth and improved cash flow.
“We will continue this focus into 2023,” Mathrubootham said.
Freshworks’ shares ended 0.74 percent higher at $16.39 per piece on the NASDAQ index in Tuesday’s session.
First Published: Feb 8, 2023 2:46 PM IST
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