Freshworks achieves $1 billion in annual recurring revenue
The company reported a 14 per cent growth in total revenues for the third quarter, reaching $245.4 million.
Chennai-based Freshworks has surpassed the $1 billion mark in annual recurring revenue (ARR) following the close of the quarter, according to The Times of India.
The company's total revenues for the quarter rose by 14 per cent to $245.4 million. During the same period, income from operations reached $28 million with an 11.5 per cent operating margin, compared to a $7.5 million loss and a -3.5 per cent margin in the corresponding quarter of 2025.
Freshworks reported a GAAP net income of $18.3 million. The GAAP net income per share was $0.07, while the non-GAAP net income per share was $0.22.
Chief executive and president Dennis Woodside said the company's upmarket strategy delivered a strong quarter. He noted that the company delivered a 30 per cent non-GAAP operating margin and saw adjusted free cash flow grow by 29 per cent.
The number of customers contributing more than $100,000 in ARR rose by 25 per cent to 1,821. Additionally, customers contributing over $50,000 in ARR increased by 18 per cent to 4,257.
The company is currently targeting $1 billion ARR by the end of the year and aims for $1.3 billion ARR in approximately two years as it shifts focus toward mid-sized enterprises.