Freshworks tops revenue estimates as lower-priced offerings boost demand
Reuters
Published May 02, 2023 04:11PM ET
(Reuters) - Freshworks Inc beat quarterly revenue estimates on Tuesday and posted its first adjusted operating profit as more businesses sought its lower-priced customer engagement software in a tough economy.
Rising interest rates, high inflation and a banking crisis have worsened the global economic outlook in recent months, forcing businesses to slash their technology budgets.
Freshworks, whose products compete with Salesforce (NYSE:CRM) Inc and Zendesk (NYSE:ZEN), told Reuters that the downturn was driving more companies to its more affordable offerings.
The San Mateo, California-based company's revenue rose 20% in the first quarter ended March to $137.7 million, compared with analysts' estimates of $134.3 million, according to Refinitiv.
It posted an adjusted operating profit of $3.9 million. Net loss narrowed to $42.7 million, from $49.1 million a year earlier.
The company forecast second-quarter revenue largely in line with estimates, while its forecast for adjusted profit was above estimates.
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Written By: Reuters
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