Shares of Freshworks Inc. (FRSH) soared over 9% in after-hours trading on Monday, following the software company's better-than-expected third-quarter results and raised full-year guidance. The strong performance was driven by robust demand for Freshworks' AI-powered products that help businesses streamline IT services and enhance customer support.
For the third quarter ended September 30, Freshworks reported revenue of $186.6 million, up 22% year-over-year, surpassing analysts' estimates of $181.6 million. The company's adjusted earnings per share of $0.11 also exceeded expectations of $0.08. Freshworks credited the impressive results to growing adoption of its AI-driven solutions like Freshservice for IT service management and Freshdesk for customer service.
Encouraged by the strong momentum, Freshworks raised its full-year 2024 revenue guidance to a range of $713.6 million to $716.6 million, up from its previous forecast of $707 million to $713 million. The company also lifted its annual adjusted profit per share outlook to 38 cents to 39 cents, higher than the prior guidance of 32 cents to 34 cents.
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.