Freshworks reports 15% revenue growth to $215.1 million in Q3; narrows losses

Core Insights - Freshworks reported a 15% year-over-year revenue growth for Q3 2025, reaching $215.1 million compared to $186.6 million in Q3 2024 [1] - The company narrowed its net loss to $4.6 million from $30 million in the previous year, while GAAP loss from operations improved to $7.5 million from $38.9 million [1] Financial Performance - Freshworks raised its full-year revenue guidance to $833.1-$836.1 million, up from the previous estimate of $822.9-$828.9 million, driven by enterprise adoption of AI [2] - As of September 30, 2025, the company had cash, cash equivalents, and marketable securities totaling $813.2 million [2] Customer Metrics - The number of customers contributing more than $5,000 in annual recurring revenue (ARR) increased by 9% year-over-year to 24,377 [4] - The net dollar retention rate was 105%, slightly down from 107% in Q3 2024 [4] - Freddy AI products saw a doubling in annual recurring revenue year-over-year [4] Product and Market Expansion - Freshworks onboarded new customers including AllSaints/John Varvatos, Apollo Tyres, and Société Générale [5] - The company expanded its Enterprise Service Management (ESM) offerings, with ESM annual recurring revenue surpassing $35 million in Q3 2025 [5] Market Performance - Freshworks shares have declined approximately 32% since the beginning of the year, while the S&P 500 has gained 15% [6] - Following the earnings report, Freshworks shares rose by about 1.2%, closing at $11.06 on the Nasdaq [6]