FRSH Nasdaq· Freshworks Inc
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FRSH Nasdaq· Freshworks Inc
Earnings report Q4 2023

Freshworks Reports Strong Revenue Growth in Latest Quarter

Segments of revenue

Freshworks reported total revenue of $596.4 million for the year ended December 31, 2023. This represents a significant increase from $498.0 million in the previous year and $371.0 million in the year before that. The year-over-year growth rates were 20% and 34% respectively.


Freshworks' strong revenue growth can be attributed to its product-led growth (PLG) strategy, which has helped the company serve organizations of all sizes. The simplicity and powerful functionality of Freshworks solutions have been key drivers of customer acquisition, conversion, and overall revenue. The company's focus on addressing the needs of businesses of all sizes that require digital transformation has also contributed to its success.


Freshworks faces potential challenges in the future. As the market for its products matures, there is a risk that new competitors may introduce alternative products or services that compete with Freshworks' offerings. This could impact the company's ability to attract new customers at the same price or based on the same pricing models as in the past. Additionally, Freshworks derives a substantial portion of its revenue from a limited number of products, which makes its growth dependent on the continued market demand and acceptance of these products.


Freshworks has a significant opportunity to expand within its existing customer base. As of December 31, 2023, approximately 26% of its customers purchased two or more Freshworks products, indicating the potential for cross-selling and driving growth. The company has also seen an increase in the number of customers with larger subscriptions, reflecting the success of its upselling efforts.


Freshworks has delivered strong revenue growth in the latest quarter, with total revenue reaching $596.4 million. The company's product-led growth strategy and focus on addressing the needs of businesses of all sizes have been key drivers of its success. However, Freshworks faces challenges in the form of potential competition and its reliance on a limited number of products. The company has a significant opportunity to expand within its existing customer base and drive further growth through cross-selling and upselling efforts.

Source documents

Form 10-K  filed on Feb 16, 2024
64 pages scanned

Reference data

Company financials Q4 revenue 160M
Analyst estimates Q4 EPS beat by 52.00%
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