Nasdaq-listed Indian SaaS company Freshworks targeting $1 billion revenue by 2026

Indian origin Nasdaq-listed Software-as-a-Service (SaaS) company Freshworks announced its financial results for the September ended quarter. The company reported a 19 per cent year-on-year jump in its consolidated revenue of $153.6 million. This was on the back of new customer addition and retention of large customers.

Girish Mathrubootham, Chief Executive Officer of Freshworks, said after the results, “We delivered another solid quarter of performance and we outperformed our own estimates across major key financial metrics.”

The SaaS firm's operating expenses for the quarter came in at $166 million with the majority of the spending going toward sales and marketing at $90 million. Their net loss came at $32 million in the quarter under review as against a loss of $57 million in Q3 of 2022.

The SaaS company’s Non-GAAP income from operations came in at $17.4 million, compared to non-GAAP loss from operations of $3.1 million in the third quarter of 2022. GAAP refers to Generally Accepted Accounting Principles, which is a collection of commonly followed accounting rules and standards for financial reporting.

As per the company management, the company's growth drivers for the quarter include new customer additions, especially large customers.

Chief Financial Officer, Dennis Woodside explained during the earnings conference, "The company added nearly 1000 net customers during the quarter taking the overall number to 66,600 customers of Freshworks. We are targeting larger and higher yielding customers and in Q3 customers contributing to more than $50,000 in ARR grew 32 per cent year-on-year.”

The CFO also said that the growth drivers are pointing towards achieving its target of reaching $1 billion in revenue by 2026.

He said, "The combination of large customers and the SMB opportunity gives us a unique GTM strategy and we believe this will fastrack and take us to the goal of reaching $1 billion in revenue in the next three years."

Interestingly, Freshworks' direct competitor Zoho said that it crossed $1 billion in revenue in 2022.