Freshworks Sees 21% Revenue Growth, Adds 2,600 Customers in Q4
Freshworks reported a 22% year-over-year revenue growth for Q4, reaching nearly $200 million, alongside a strong 21% YoY increase in annual revenue, totalling $720.4 million.
The company’s momentum was driven by increasing demand from mid-market businesses seeking simplified, modern solutions. Freshworks also saw its largest customer growth in four years, adding 2,600 new customers in Q4, including brands like New Balance, Rawlings Sporting Goods, and Sophos.
“Freshworks outperformed expectations once again, delivering another strong quarter of growth and profitability,” said Dennis Woodside, CEO & President of Freshworks. “Companies are moving away from legacy vendors and choosing Freshworks for our uncomplicated, modern solutions that enhance customer and employee experiences.”
“Freshworks outperformed expectations once again, delivering another strong quarter of growth and profitability.” Dennis Woodside, CEO & President of Freshworks.
Key Financial Highlights – Q4 2024
Revenue: $194.6 million (22% YoY growth)
GAAP Loss from Operations: $(23.8) million, improving from $(40.0) million in Q4 2023
Non-GAAP Income from Operations: $40.3 million, up from $11.5 million last year
Net Cash Provided by Operating Activities: $41.4 million (vs. $30.9 million in Q4 2023)
Adjusted Free Cash Flow: $41.7 million, compared to $28.6 million last year
Full-Year 2024 Financial Highlights
Total Revenue: $720.4 million (21% YoY growth)
Non-GAAP Income from Operations: $99.1 million, up from $44.5 million in 2023
Net Cash Provided by Operating Activities: $160.6 million (vs. $86.2 million in 2023)
Cash Reserves: $1.07 billion in cash, cash equivalents, and marketable securities
Business Growth and Strategic Developments
Customer Growth: 2,600 new customers added in Q4, bringing the total to 72,000+
Key New Customers: New Balance, Rawlings Sporting Goods, Sophos, Onfido, Mesa Airlines
Leadership Expansion: Appointed Srini Raghavan as Chief Product Officer and Venki Subramanian as SVP of Product Management for CX
Strategic Partnerships: Signed a major global systems integrator agreement with Unisys
Financial Outlook for 2025
Freshworks expects continued growth in 2025, forecasting:
Q1 2025 Revenue: $190M–$193M (15%–17% YoY growth)
Full-Year 2025 Revenue: $809M–$821M (12%–14% YoY growth)
Non-GAAP Income from Operations: $131M–$139M
With a strong financial foundation, increased customer adoption, and leadership expansion, Freshworks is positioned for continued success in 2025.
