Core Insights - Freshworks Inc. has introduced new capabilities in its Freshservice platform aimed at simplifying enterprise service delivery, modernizing IT, and enhancing employee trust [1][4] Group 1: Product Enhancements - The launch includes enhancements to Freshservice and Freddy AI, improving employee experience (EX) and service delivery through effortless self-service and real-time device health insights [2] - AI-powered Intelligent Routing in Freshservice ensures tickets are directed to the appropriate team instantly, enhancing resolution speed and employee experience [2] - Freddy AI Insights now provides IT leaders with conversational insights to visualize complex service patterns and quickly identify root causes [2][7] Group 2: Addressing Complexity in IT - Freshworks' Cost of Complexity Report indicates that nearly 20% of IT leaders have faced burnout or attrition due to complex software, with 29% of employees reporting productivity loss from bloated tools [3] - The report identifies business software as the primary driver of organizational complexity [3] Group 3: Proactive Issue Resolution - DEX integrations with Riverbed Aternity and ControlUp allow for the detection and resolution of endpoint issues before employees notice them, providing immediate visibility into system health [5] - AI-powered Intelligent Routing helps assign tickets based on team availability, skill, and workload, improving issue resolution efficiency [5] Group 4: Enhanced Employee Support - Enhanced Freddy AI Agents can now search Google Drive and process images within tickets, integrating seamlessly with popular applications like Microsoft 365 Copilot [6] - Freshservice's multilingual knowledge base allows users to access helpful articles in their preferred language, improving self-service capabilities [6] Group 5: Performance Recognition - Freshservice has been recognized as a Strong Performer in The Forrester Wave™: Enterprise Service Management Platforms, Q4 2025, receiving high scores in various criteria [8] - Customers have praised Freshworks for its ease of use, intuitive design, and robust API capabilities, contributing to improved incident management and resolution times [8]

Core Viewpoint - Freshworks Inc. reported strong financial results for Q2 2025, with an 18% year-over-year revenue growth, reflecting increased demand for its AI-powered service solutions [2][6]. Financial Summary - Total revenue for Q2 2025 was $204.7 million, up from $174.1 million in Q2 2024, marking an 18% increase. Adjusted for constant currency, the growth was 17% [6][35]. - GAAP loss from operations improved to $(8.7) million from $(43.8) million in the same quarter last year [6]. - Non-GAAP income from operations was $44.8 million, compared to $13.1 million in Q2 2024 [6]. - GAAP net loss per share was $(0.01), an improvement from $(0.07) in Q2 2024 [6]. - Non-GAAP diluted net income per share was $0.18, up from $0.08 in Q2 2024 [6]. - Net cash provided by operating activities was $58.6 million, compared to $36.3 million in Q2 2024 [6]. - Adjusted free cash flow reached $54.3 million, compared to $32.8 million in Q2 2024 [6]. Key Metrics and Business Highlights - The number of customers contributing more than $5,000 in ARR increased by 10% year-over-year to 23,975 [7]. - The net dollar retention rate was 106%, consistent with Q1 2025 and Q2 2024 [7]. - Freshworks onboarded several new customers, including AEP Energy and Seagate Technology [7]. - The company launched the next generation of its Freddy AI Platform, enhancing its AI capabilities [7]. - The combined annual recurring revenue from Freddy AI Copilot and Freddy AI Agent products surpassed $20 million [7]. Financial Outlook - For Q3 2025, Freshworks expects revenue between $207.0 million and $210.0 million, representing a year-over-year growth of 11% to 12% [9]. - The full-year 2025 revenue guidance is set between $822.9 million and $828.9 million, indicating a growth of 14% to 15% [9]. - Non-GAAP income from operations for Q3 is projected to be between $31.2 million and $33.2 million, with non-GAAP net income per share expected to be between $0.12 and $0.14 [9].

Core Insights - Freshworks has launched Freshservice Journeys, an AI-assisted capability aimed at enhancing employee experience (EX) by streamlining complex employee processes such as onboarding and promotions [1][9] - The solution is designed to improve efficiency, reduce friction, and enhance collaboration across departments, addressing issues caused by legacy systems and siloed operations [2][8] Product Features - Freshservice Journeys offers no-code workflow creation, AI-powered task automation, real-time progress tracking, and cross-department visibility, which helps eliminate bottlenecks and improve employee experience [3][4][6] - The platform allows IT and HR teams to rapidly design and deploy workflows without technical support, using either custom workflows or pre-built templates [5][7] Market Adoption - Over 60% of Freshworks' total Annual Recurring Revenue (ARR) now comes from mid-market and enterprise clients, with 79% of this driven by solutions enhancing employee experience [8][9] - The company continues to grow its customer base, adding around 250 customers to reach more than 1,600, indicating strong market demand for its services [10] Financial Performance - Freshworks maintains a focus on investing in employee experience and AI to boost customer productivity, contributing to its revenue and profit growth [9] - The company has a Zacks Rank 1 (Strong Buy), with shares gaining 19.2% over the past year, compared to the industry growth of 36.4% [12]