Core Insights - Freshworks Inc. reported strong financial results for Q4 and fiscal year 2025, exceeding revenue and operating margin guidance, with a year-over-year revenue growth of 16% [1][5][8] - The company’s EX business achieved over $500 million in annual recurring revenue, indicating significant growth in this segment [1] Financial Performance - **Q4 2025 Results**: Total revenue reached $222.7 million, a 14% increase from $194.6 million in Q4 2024. Adjusted for constant currency, the growth was 13% [5][37] - **Operating Income**: GAAP income from operations was $39.7 million, with an operating margin of 17.8%, compared to a loss of $23.8 million and a margin of (12.2)% in Q4 2024 [5][37] - **Net Income**: GAAP diluted net income per share was $0.67, up from a loss of $(0.07) in Q4 2024 [5][9] - **Cash Flow**: Net cash provided by operating activities was $62.3 million, representing a margin of 28.0%, compared to $41.4 million and a margin of 21.3% in Q4 2024 [5][9] Full Year 2025 Summary - **Total Revenue**: For the full year, revenue was $838.8 million, a 16% increase from $720.4 million in 2024 [5][37] - **Operating Income**: GAAP income from operations was $13.2 million, with a margin of 1.6%, compared to a loss of $(138.6) million and a margin of (19.2)% in 2024 [5][37] - **Non-GAAP Income**: Non-GAAP income from operations was $178.0 million, with a margin of 21.2%, up from $99.1 million and a margin of 13.8% in 2024 [5][37] Customer Metrics and Business Highlights - The number of customers contributing more than $5,000 in annual recurring revenue (ARR) increased by 10% year-over-year to 24,762 [10] - The net dollar retention rate improved to 108%, compared to 105% in Q3 2025 and 103% in Q4 2024 [10] - Freshworks announced the acquisition of FireHydrant to enhance its IT Service Management offerings [10] - New product capabilities were launched, including Freshdesk Command Center and Freddy AI Insights, aimed at improving customer experience [10] Financial Outlook - For Q1 2026, Freshworks expects revenue between $222.0 million and $225.0 million, with year-over-year growth of 13% to 15% [8] - For the full year 2026, revenue is projected to be between $952.0 million and $960.0 million, with growth of 13.5% to 14.5% [8]

Core Insights - Freshworks Inc. has introduced new capabilities in Freshdesk aimed at enhancing customer experience (CX) by reducing response times, improving resolution rates, and providing clearer insights into operational issues [1][2] Product Innovations - The update includes three main features: Freshdesk Command Center for centralized multi-channel customer interactions, Vertical AI Agents with prebuilt workflows for various industries, and Freddy AI Insights for real-time operational visibility [2][4] - Freshdesk Command Center integrates multiple communication channels and AI capabilities into a single workspace, streamlining customer service operations and reducing manual data retrieval [5][6] - Freddy AI Insights offers leaders real-time visibility into performance trends and anomalies, enabling proactive management of support operations [8] Industry Challenges - A report by Freshworks highlights common challenges faced by customer service agents, including uncustomizable workflows (42%) and excessive tools (36%), which hinder productivity [3] - The need for organizations to quickly design and deploy AI agents is emphasized, as current processes are often time-consuming and inefficient [10] Customer Success Stories - Companies like Gail's Bakery and Upayments have reported significant improvements in efficiency and customer service quality through the use of Freshworks' AI capabilities, with some achieving up to 80% resolution of service issues by AI agents [9][13]