Freshworks raises annual revenue, profit forecasts as AI boosts demand
Nov 6 (Reuters) -Freshworks FRSH.O raised its annual revenue and profit forecasts on Wednesday following upbeat third-quarter results, as clients turn to the company's AI-driven products to manage their IT services.
Businesses are digitizing their operations with artificial intelligence tools, which is boosting demand for companies suchas Freshworks.
The San Mateo, California-based company provides an IT service management tool called Freshservice that helps businesses with employee onboarding and management. It also offers a customer service software, Freshdesk, designed to deliver fast solutions to customer issues.
The company has more than 68,000 customers, including Databricks, American Express AXP.N, Nucor NUE.N and Sony 6758.T. It competes with companies such as Salesforce CRM.N and ServiceNow NOW.N.
Freshworks now expects annual revenue to be between $713.6 million and $716.6 million, up from its prior expectations of $707 million to $713 million.
The company also raised its annual adjusted profit per share forecast to a range of 38 cents to 39 cents, up from its previous forecast of 32 cents to 34 cents.
The software firm's revenue rose 22% to $186.6 million for the third quarter ended Sept. 30, compared with analysts' average estimate of $181.6 million, according to data compiled by LSEG.
Adjusted profit per share of 11 cents for the third quarter also beat estimates of 8 cents.
Freshworks forecast fourth-quarter revenue to be between $187.8 million and $190.8 million, the midpoint of which was in line with estimates.
Reporting by Jaspreet Singh in Bengaluru; Editing by Mohammed Safi Shamsi
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