From GlobeNewswire: 2025-04-29 16:10:00

Freshworks Inc. reported strong financial results for Q1 2025, with revenue growing 19% year-over-year to $196.3 million. The company also achieved an operating cash flow margin of 30% and adjusted free cash flow margin of 28%. Freshworks continues to attract businesses with its customer and employee service solutions.

Key metrics for Q1 2025 include 23,275 customers contributing over $5,000 in ARR, a 13% increase year-over-year. The net dollar retention rate was 105%. Freshworks welcomed new customers like All3Media and Freudenberg Group, and launched a global partner program. The company remains focused on expanding its offerings and customer base.

Freshworks provided estimates for Q2 and full year 2025, expecting revenue growth rates of 13-15% and non-GAAP net income per share of $0.10-$0.12 for Q2. The company anticipates revenue of $815.3-$824.3 million for the full year and non-GAAP net income per share of $0.56-$0.58. These estimates are adjusted for constant currency to reflect underlying business trends.

In addition to GAAP measures, Freshworks uses non-GAAP financial measures to assess performance. Adjustments include stock-based compensation, employer payroll taxes, and amortization of acquired intangibles. The company defines adjusted free cash flow as net cash provided by operating activities less capital expenses and restructuring charges, providing insight into liquidity and operational efficiency.

Freshworks’ financial outlook and estimates are subject to various factors that could impact actual results. The company cautions investors about the limitations of non-GAAP financial measures for comparison purposes. Forward-looking statements are based on current expectations and may differ due to factors beyond the company’s control. Freshworks remains committed to delivering exceptional customer and employee experiences through its AI service software solutions.



Read more at GlobeNewswire:: Freshworks Reports First Quarter 2025 Results