(Reuters) -Freshworks raised annual revenue forecast on Tuesday, betting on growing demand for its artificial intelligence-powered software designed to manage IT services.
Businesses are increasingly adopting software solutions from companies such as Freshworks, ServiceNow and Salesforce to automate repetitive tasks and streamline customer interactions.
The company now expects revenue for the year 2025 to be between $822.9 million and $828.9 million, up from its previous forecast of $815.3 million to $824.3 million.
Analysts, on average, project annual revenue of $819.6 million, according to data compiled by LSEG.
Freshworks, which serves over 74,000 clients, including American Express and Databricks, offers products that assist clients with employee onboarding and management.
The company said more than 5,000 customers are now paying for its Freddy AI products, which help resolve customer inquiries, automate routine tasks and provide tailored solutions.
It also offers its products to U.S. state and local governments.
“We have over 1,000 government entities currently working on our platform,” CEO Dennis Woodside said in an interview.
Freshworks reported second-quarter revenue of $204.68 million, surpassing analysts’ estimates of $198.83 million. Adjusted profit per share of 18 cents for the quarter ended June 30 also exceeded analysts’ expectations of 11 cents.
The company’s third-quarter forecasts for revenue and adjusted profit per share came in line with analysts’ estimates.
It expects quarterly revenue between $207 million and $210 million and adjusted profit between 12 cents and 14 cents per share.
(Reporting by Jaspreet Singh in Bengaluru; Editing by Mohammed Safi Shamsi)
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