What is the revenue and EPS growth rate for Freshworks year over year?

Did Freshworks beat or miss consensus estimates last quarter?

What is Freshworks's latest dividend and current dividend yield?

What were the key takeaways from Freshworks’s earnings call?

What guidance did Freshworks's management provide for the next earnings period?

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What factors drove the changes in Freshworks's revenue and profit?

What is the market's earnings forecast for Freshworks next quarter?

- **Revenue Surpass**: Q3 revenue of $215.1M (+15% YoY) exceeded expectations, driven by EX (+24% YoY) and CX (+8% YoY) segments.
- **AI Breakthrough**: AI ARR doubled YoY, with Freddy AI agents handling 650,000+ monthly sessions and deflecting 50-80% of tickets. Copilot ARR grew 160% YoY, attached to 60% of new deals.
- **EX Expansion**: EX ARR hit $480M, fueled by ESM ($35M ARR), Device 42 wins, and ITAM adoption. FreshService for Business Teams used by 25% of eligible customers.
- **Financial Strength**: Non-GAAP net income $45.2M (21% margin), free cash flow $57.2M (27% margin). Full-year 2025 billings +16% YoY.
- **Strategic Moves**: Launched standalone ESM product, increased AI pricing, and invested $10M in Q4 demand gen to accelerate EX pipeline.

**【CEO Summary Section】**
- **Revenue Growth**: Q3 revenue reached $215.1 million, up 15% YoY on both as-reported and constant currency bases, driven by EX and CX segments.
- **AI Momentum**: AI ARR doubled YoY, with Freddy AI agents handling over 650,000 monthly sessions and deflecting 50-80% of tickets. Copilot ARR grew 160% YoY, with 60% of new deals over $30,000 including Copilot.
- **EX Expansion**: EX ARR hit $480 million (+24% YoY), fueled by ESM ($35M ARR), Device 42 wins (largest deal in Q3), and ITAM adoption. FreshService for Business Teams now used by 25% of eligible customers.
- **CX Strength**: CX ARR reached $390 million (+8% YoY), with Freshdesk adoption in mid-market and enterprise (e.g., University of Pennsylvania processed 30,000+ tickets in 6 months).
- **Customer Base**: 75,000+ customers, with 24,377 contributing >$5,000 ARR (+9% YoY) and 3,612 >$50,000 ARR (+20% YoY). Net retention 105% (as-reported), 104% (constant currency).

**【CFO Financial Commentary】**
- **Profitability**: Non-GAAP net income $45.2M (21% margin), up from $30.6M in Q2. Adjusted free cash flow $57.2M (27% margin), up 500bps YoY.
- **Billings**: Q3 calculated billings $224M (+14% YoY). Full-year 2025 billings expected +16% YoY. Q4 billings guidance $217-220M (+12-13% YoY).
- **Share Repurchase**: Completed $400M buyback, repurchasing 27.9M shares at $14.35 avg. Plan to net settle $58M in 2025 for dilution offset.
- **Margins**: Q4 operating margin ~21%, with 2026 exit margin >23%. Q1 2026 margin dip due to merit resets, followed by linear improvement.

**【Q&A Highlights】**
- **ESM Standalone Sales**: Launched FreshService for Business Teams as standalone product to target non-IT functions, preserving optionality for ITSM migration. Early traction with 1,000+ law firms and 17%+ YoY growth in ITAM.
- **AI Pricing**: AI agents will adopt industry-standard pricing, reflecting 80% deflection rates in early access. Copilot pricing remains per-seat, with 112% NRR for AI customers.
- **Government Impact**: No impact from U.S. shutdown; state/local gov and university wins continued (e.g., Pennsylvania Gaming Control Board).
- **Pipeline Visibility**: Q4 demand gen investment (+$10M) to accelerate EX pipeline. EX win rates highest in two years, with Device 42 cloud launch in Q1 2026 targeting mid-market cloud preference.
- **Share Repurchase Strategy**: Board evaluating future buybacks post-inaugural program. Focus on net settling to offset dilution, with $12M Q4 spend at current prices.

Freshworks Inc. (FRSH) Q3 2025 Earnings Call Transcript

- **Revenue Growth**: 18% YoY to $204.7M, EX ARR +24% to $450M, CX ARR +11% to $380M. 
- **AI Expansion**: $20M ARR (doubled YoY), 55%+ Copilot attach rate, 5,000+ paying customers. 
- **Profitability**: 22% non-GAAP margin, $54.3M free cash flow (27% margin). 
- **Guidance**: Q3 $207-210M (11-12% YoY), FY25 $822.9-828.9M (14-15% YoY). 
- **Strategic Moves**: Freshservice Journeys, Freddy AI Agent Studio, multiyear McLaren partnership.

**【CEO Summary Section】**
- Q2 revenue grew 18% YoY to $204.7 million, driven by EX (24% YoY ARR growth to $450M) and CX (11% YoY ARR growth to $380M). 
- EX expansion: 19,000+ customers, 35% cost savings for Nexstar Media, 900 agents onboarded at Michaels Stores. 
- AI adoption: 5,000+ paying customers, $20M ARR (doubled YoY), 55%+ Copilot attach rate in large deals. 
- CX momentum: 36-country deployment for Honda, 35% ticket deflection via AI agents. 
- Strategic initiatives: Freshservice Journeys for HR, Freshservice for MSPs, Freddy AI Agent Studio. 

**【CFO Financial Commentary】**
- Non-GAAP operating margin 22%, up 14ppt YoY. Adjusted free cash flow $54.3M (27% margin). 
- Q3 guidance: $207-210M revenue (11-12% YoY), $0.12-0.14 EPS. Full year: $822.9-828.9M (14-15% YoY). 
- Billings growth 16% YoY (14% CC). Share buybacks: $240M+ repurchased. 

**【Q&A Highlights】**
- **AI Adoption**: 5,000+ paying customers, 1,000+ new per quarter. Agentic AI in early access, pricing TBD. 
- **Partnerships**: 130+ new partners, 1/3 of ARR touched by partners. Unisys deal driving large deals. 
- **Macro Impact**: Diversified revenue (48% intl), no industry concentration. 
- **Device42**: 2/3 of EX ARR, cloud version launching Q1 2026. 
- **Growth Drivers**: EX (ESM, Device42), CX (AI, cross-sell), AI (Copilot, Agentic agents).

Freshworks Inc. (FRSH) Q2 2025 Earnings Call Transcript

- **Revenue Growth Leader**: 19% YoY revenue to $196M, EX ARR +33% to $420M, CX ARR +7% to $370M. 
- **Profitability Surge**: 24% non-GAAP margin (vs. 14% last year), 28% free cash flow margin. 
- **AI Adoption Acceleration**: 2,700 Copilot users (+500 QoQ), 1,600 AI Agents, 30% productivity gains. 
- **Customer Expansion**: +1,000 net customers (73,300 total), 24% YoY growth in >$50k ARR cohort. 
- **FY25 Outlook**: $815-824M revenue (+13-14%), 14% constant currency billings growth.

**【CEO Summary Section】**
- **Revenue Growth**: Q1 2025 revenue reached $196.3 million, up 19% YoY, driven by EX business ARR growth of 33% to $420 million and CX ARR of $370 million. 
- **Profitability**: Non-GAAP operating margin expanded to 24% (vs. 14% last year), adjusted free cash flow margin of 28%, achieving Rule of 47. 
- **AI Adoption**: 2,700 Copilot customers (+500 QoQ), 1,600 AI Agent users, and 1,000 AI Insights beta users. AI deflection rates 50-70%, 30% productivity gains. 
- **Customer Expansion**: +1,000 net customers (73,300 total), NDR 105% (constant currency), 24% YoY growth in >$50k ARR customers. 
- **Strategic Wins**: Freudenberg Group, All3Media, Sophos, and largest U.S. title company replaced legacy vendors with Freshworks solutions. 

**【CFO Financial Commentary】**
- **Revenue**: $196.3M (+19% YoY), beating estimates. EX/CX ARR growth 33%/7% (constant currency). 
- **Margins**: Gross margin 86%, operating margin 24% (vs. 14% last year). Adjusted free cash flow $55.4M (+43% YoY). 
- **Billings**: $203.3M (+17% constant currency), Q2 guidance 11-12% growth, FY25 14% constant currency. 
- **Share Repurchases**: $111.8M in Q1, total $127.3M since program launch. 
- **FY25 Outlook**: Revenue $815-824M (+13-14% YoY), non-GAAP EPS $0.56-0.58. 

**【Q&A Key Themes】**
1. **AI Efficiency**: Internal AI use reduces costs 20%, 80% query deflection in support. 
2. **Pipeline Strength**: Stable NDR 105%, pipeline momentum in EX upmarket and CX SMB. 
3. **Partner Program**: Expanded reseller model drives 500+ transacting partners. 
4. **Market Resilience**: 70% of deals replace legacy vendors, 30%+ productivity gains from AI. 
5. **Expense Management**: Q2 opex up due to merit cycle, but 20% headcount reduction YoY from AI automation.

Freshworks (FRSH)-29 Apr 25-2025 Q1 Earnings call transcript

- **EX dominance**: EX ARR ($400M+) grows 35% YoY, outpacing CX (7% YoY). Device42 adds $10.3M Q4, 50%+ cross-sell to Freshservice. 
- **AI acceleration**: Freddy Copilot adds 500+ Q4, 50% attach rate on large deals. 1,300+ paying AI Agent customers. 
- **Financial strength**: 21% non-GAAP margin, $41.7M adj. FCF. FY25 $210M+ FCF target. 
- **Growth catalysts**: Free-to-paid conversions (+2,000 CX customers), Unisys MSP partnership, AI expansion into EX. 
- **Risk management**: 1ppt FY25 revenue guidance FX sensitivity, 11% share count growth controlled via net settle.

**【CEO Summary Section】**
- Q4 revenue grew 22% YoY to $194.6 million, driven by EX business ARR surpassing $400 million (35% YoY growth on constant currency). 
- EX expansion via ESM (25% attach rate in Q4) and Device42 (highest net new ARR quarter) outperformed expectations. 
- AI adoption accelerated with Freddy Copilot adding 500+ net customers Q4, achieving 50% attach rate on deals >$30k. 
- CX business added 2,000+ net customers through free-to-paid conversions, maintaining 7% YoY ARR growth. 
- New partnerships like Unisys highlight mid-market ITSM growth opportunity. 

**【CFO Financial Commentary】**
- Non-GAAP operating margin expanded to 21% (vs. 13% prior year), driven by $41.7M adj. free cash flow (21% margin). 
- FY24 adj. free cash flow nearly doubled to $153.3M, with $210M+ target for FY25. 
- Q1 2025 guidance: $190-193M revenue (15-17% YoY), $32.5-34.5M non-GAAP op income. 
- FY25 revenue expected $809-821M (12-14% YoY), with margin improvements post Q2 merit cycle. 

**【Q&A Highlights】**
- EX growth sustainability: Mid-market ITSM pipeline up 100% QoQ, Device42 cross-sell driving 22%+ EX growth. 
- AI monetization: Freddy Copilot ARR ahead of internal targets, 1,300+ paying AI Agent customers. 
- Cash allocation: $15.5M share buybacks in Q4, $71M FY25 net settle for dilution management. 
- FX impact: 3ppt ARR growth drag in Q4, 1ppt FY25 revenue guidance reduction. 
- MSP strategy: 1,000+ existing MSP customers, enhanced multi-account management features launching Q2.

Freshworks (FRSH)-11 Feb 25-2024 Q4 Earnings call transcript

Freshworks (FRSH)-6 Nov 24-2024 Q3 Earnings call transcript

Freshworks Inc - Ordinary Shares (FRSH)-30 Jul 24-2024 Q2 Earnings call transcript

Freshworks Inc - Ordinary Shares (FRSH)-1 May 24-2024 Q1 Earnings call transcript

Freshworks (FRSH)-6 Feb 24-2023 Q4 Earnings call transcript

Freshworks (FRSH)-31 Oct 23-2023 Q3 Earnings call transcript

- **Revenue Growth**: Q2 revenue exceeded expectations at $145.1 million, driven by ITSM and larger deals.
- **AI Strategy**: Freddy AI add-ons (e.g., Copilot at $29/agent/month) and a modern customer service suite launched.
- **Financial Health**: Non-GAAP EPS of $0.06, free cash flow of $18.1 million.
- **Customer Focus**: 46% of ARR from >$50k ARR customers.
- **Guidance**: Full-year billings of $587-595 million (18-19% YoY growth).

**【CEO Summary Section】**
- Freshworks reported Q2 revenue of $145.1 million, exceeding the high end of its guidance range, driven by IT service management (ITSM) product growth and larger customer deals.
- CEO Girish Mathrubootham highlighted the launch of Freddy AI capabilities (Self-service, Copilot, Insights) across customer service and IT products, with plans to monetize AI add-ons like Freddy Copilot at $29 per agent/month.
- The company introduced a modern customer service suite powered by Freddy AI, enabling conversational self-service and agent collaboration.
- Gross margin improved to 84% due to AWS cost reductions, and non-GAAP operating profit reached $11.7 million.

**【CFO Financial Commentary】**
- Q2 non-GAAP EPS was $0.06, exceeding expectations, with free cash flow of $18.1 million.
- CFO Tyler Sloat noted a 5% year-over-year decline in operating expenses due to cost control and a shift to larger, more profitable customers.
- Calculated billings grew 22% YoY to $158.9 million, with guidance for Q3 billings of $149-151.5 million (16-18% YoY growth).
- Full-year 2023 billings guidance is $587-595 million (18-19% YoY growth), with free cash flow expected to reach $60 million.

**【Q&A Highlights】**
- **AI Adoption**: Early adopters of Freddy Copilot include a New York shipping company, with plans to monetize Copilot later this year.
- **Customer Retention**: Net dollar retention rate of 102% (105-106% on constant currency) due to cross-sell opportunities (e.g., Freshservice to Freshdesk).
- **Go-to-Market Changes**: President Dennis Woodside reported 33% YoY growth in customers >$50k ARR, contributing 46% of ARR.
- **Currency Impact**: Q2 revenue growth of 20% (19% in USD), with FX headwinds noted.
- **Free Cash Flow**: $18.1 million in Q2, with full-year guidance of $60 million.


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