How did Freshworks' subscription services drive revenue growth in Q4 2024?

Freshworks' subscription services contributed to the company's revenue growth in Q4 2024 through a combination of growth in subscription-based revenue and maintenance income from global services. The following highlights the key factors driving Freshworks' revenue growth: 1. **Subscription-Based Revenue Growth**: Freshworks saw a significant increase in subscription-based revenue, which is a positive indicator for future revenue visibility. This growth is a result of the company's focus on expanding its customer base and increasing the average revenue per user. 2. **Maintenance Income from Global Services**: In addition to subscription-based revenue, Freshworks also experienced growth in maintenance income from global services. This reflects the company's successful approach to providing ongoing support and services to its customers, which helps to generate additional revenue streams. 3. **Strategic Focus on AI**: Freshworks' strategic focus on artificial intelligence (AI) is likely playing a role in attracting new customers and retaining existing ones. The company's enhancements to its security offerings and focus on AI applications are likely contributing to the growth in subscription revenue. 4. **Financial Metrics**: Freshworks reported a total revenue of $160.11 million for Q4 2024, with a year-over-year growth of 0.22%. Although the growth rate is modest, it is important to note that the company's focus on subscription-based revenue is enhancing its revenue visibility and driving consistent growth. In conclusion, Freshworks' subscription services drove revenue growth in Q4 2024 through a combination of subscription-based revenue growth, maintenance income from global services, and strategic focus on AI. These factors, coupled with the company's successful financial metrics, highlight the effectiveness of Freshworks' business model and its ability to generate sustainable revenue growth.