Freshworks Turns Profitable In Q2, Revenue Up 16% YoY To $237.4 Mn

Freshworks, a Nasdaq-listed SaaS giant, reported a net profit of $3.2 million in Q2, marking a turnaround from a net loss of $1.7 million in the same quarter last year. Revenue grew by 16% YoY to $237.4 million, driven by increasing adoption of its AI products. CEO Dennis Woodside highlighted the company's seventh consecutive quarter of beating revenue expectations and its eighth straight quarter meeting the Rule of 40 benchmark.

Despite a decline in net dollar retention, the number of clients contributing over $100,000 in ARR grew by 25% YoY, with over 71% of new enterprise deals incorporating Freddy AI Copilot. Freshworks raised its full-year revenue guidance to $963.5 million-$966.5 million and non-GAAP operating income guidance to $222 million-$228 million.

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