Freshworks’ Net Loss Narrows 43% To $20.1 Mn In Q2

Nasdaq-listed Indian SaaS major Freshworks’ consolidated net loss narrowed 43.5% year-on-year to $20.1 Mn in the second quarter of 2024.

The Chennai-based firm posted a loss of $35.6 Mn in the corresponding quarter of previous year.

Total revenue jumped 20% to $174.1 Mn in the second quarter ended June 30, 2024 on the back of improved sales and growing customer demand for AI-enabled solutions.

Commenting on the Q2 results, Dennis Woodside, CEO and president of Freshworks, said, “Freshworks delivered a solid Q2, growing revenue to $174.1 million with a free cash flow margin of 19%”.

On the other hand, Freshworks’ gross profit surged 21.3% to $145.9 Mn in Q2 2024 from $120.2 Mn in Q2 2023.

The company said that the number of customers contributing over $5,000 in ARR stood at 21,744 in the reported quarter, an increase of 14% YoY. Kayak, Davidson Kempner Capital  Management, Paul Smith UK, Asian Paints, Tile Mountain, San Diego Unified School District were among the new customers added in Q2. 

The company’s free cash flow stood at $32.8 Mn at the end of Q2 2024.

Freshworks aims for its Q3 2024 revenue in the range of $180 Mn-$183 Mn, registering a 17-19% growth YoY.

For the full calendar year 2024, Freshworks expects revenue in the range of $707 Mn-$713 Mn, clocking a growth of 18.5-19.5% YoY.

In its Q2 2024 earnings report, the company also announced that it completed the acquisition of Device42 to strengthen its IT offerings for mid-market and enterprise companies with enhanced IT asset management solutions.

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