Freshworks Reports Strong Q2 Earnings Growth

Freshworks Inc. reported a strong fiscal second quarter for 2024, with adjusted earnings per share of $0.08 and revenue of $174.1 million, surpassing analyst expectations. This performance reflects a revenue growth of 20% year-over-year and an impressive net dollar retention rate of 106%. The company, under new CEO Dennis Woodside, raised its revenue forecast for Q3 to between $180 million and $183 million, driven by increasing demand for its AI-powered services, including the Freddy Copilot AI agent. Freshworks has seen a doubling in paying customers for Freddy Copilot, indicating a 30% productivity improvement for users. The firm also raised its full-year revenue guidance to between $707 million and $713 million, showcasing its strategic positioning against competitors like Oracle and Salesforce. Despite a challenging year, with shares down 43%, the positive earnings report has sparked investor interest, particularly in the context of its AI initiatives.