Freshworks' Superior Revenue Forecasting and AI Support!

Freshworks announced on Wednesday that it expects its fourth-quarter revenue to exceed Wall Street estimates. This projection is based on the growing demand for the company's AI-powered software tools.

The company anticipates fourth-quarter revenue to be between $217 million and $220 million. This figure represents a midpoint that is above the average analyst estimate of $216.5 million.

Businesses are increasingly adopting AI-based solutions in their efforts to reduce costs and improve efficiency. Freshworks integrates AI capabilities to enhance functions such as customer relationship management and IT service management by offering cloud-based software like Freshdesk for customer service and Freshservice for IT support.

The company competes with other cloud-based software providers like Salesforce and ServiceNow, which are also continuing to develop their AI capabilities.

Last year, Freshworks acquired Device42, IT management software that maps and documents the IT assets in an organization's workflows. CEO Dennis Woodside stated, "Almost half of our big deals this quarter had a Device42 component. We made our largest Device42 deal to date with a very large sports equipment manufacturer in the U.S."

The company forecasts an adjusted profit per share between 10 to 12 cents, which is above the 10 cents predicted by estimates. In the third quarter, revenue of $215.1 million surpassed estimates of $208.8 million, while the adjusted profit per share of 16 cents exceeded the estimated 13 cents.

Freshworks has also raised its year-end revenue and adjusted profit per share expectations.