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Freshworks cuts losses by 14% in Q2; eyes $713 Mn revenue in CY24

Entrackr · 3m

SaaS firm Freshworks registered a 5.5% growth quarter-on-quarter in the second quarter of the calendar year. Meanwhile, the company managed to narrow its losses by 13.7% during the same period. Freshworks operating revenue grew to $174.1 million in the quarter ending June 2024 from $165.1 million in Q1 CYFY24, its regulatory filing accessed from NASDAQ shows. Freshworks provides marketing, sales, support, and IT solutions through a portfolio of products: Freshservice, Freshdesk, Freshmarketer, Freshchat, and Freshsales to global companies. Freshworks acquired Device42 for $230 million in June this year. Consequently, Device42’s revenue will be included in Freshworks’ financials for the upcoming third quarter (Q3). Moving over to the cost side, Freshworks’s sales and marketing formed 50% of the overall expenditure which increased by 18.5% to $104.2 in Q2 CY24. The company’s spending on research, employees, and general overhead took the overall cost to $207.4 million in Q2 CY24. The decent increase in growth and controlled cost mechanism helped Freshworks to reduce its losses by 13.7% to $20.1 million in Q2 CY24 from $23.3 million in Q1 CY24. Freshworks said that it aims to achieve approximately $180-183 million in revenue for the third quarter of CY 2024. It targets to reach $707-713 million in revenue for the full year ending December 2024. In May, Freshworks founder Girish Mathrubootham stepped down from the position of chief executive officer. While Mathrubootham took the role of executive chairman, the company’s president Dennis Woodside was elevated as the new CEO.