Freshworks beats Street, Q3 revenue surges 46% at $96.6 million

Chennai | Bengaluru: Freshworks on Tuesday reported a 46% growth in revenue to $96.6 million for the three-month period that ended September and posted a loss of just 4 cents per share for the same period, beating analyst estimates for revenue and earnings by a large margin.

The Street was expecting Freshworks' revenue for Q3 to be in the range of $90.8 million and that it would post a loss of 10 cents per share, according to analyst estimates compiled by financial markets data provider Refinitive.

Freshworks' strong Q3 performance comes ahead of what company cofounder and CEO Girish Mathrubootham said was a "Happy Diwali" for employees, with some of them being able to sell up to 20% of their shares in the company starting Thursday.

"Except for the management team or the affiliated parties like board members, everybody else is unlocked to 20% of their vested holdings," Mathrubootham told ET. "But not everything is going to probably come to the market, because a lot of our investors are going to hold."

The company also raised its revenue forecasts for the fourth quarter and for the full year. Freshworks said it expects Q4 revenue to be in the range of $99 million to $101 million and $364.5 million to $366.5 million for the entire year. Freshworks follows a financial year that ends on December 31.