Freshworks, the SaaS firm known for its customer engagement and IT solutions, closed the fourth quarter of 2024 on a strong note. The company posted $194.6 million in revenue, marking a 21.6% year-over-year increase while simultaneously cutting its losses by 21.8%. Looking ahead, the firm expects to reach $809 million in revenue for the full year 2025.
Steady Growth and Cost Management Fuel Improved Margins
Freshworks’ revenue surge was accompanied by disciplined spending. In Q4 2024, the company generated $194.6 million, up from $160 million in the same period a year earlier. The full-year revenue also reflected a similar trend, climbing 20.8% from $596 million in 2023 to $720 million in 2024.
On the cost side, sales and marketing remained the dominant expense, accounting for 46% of total spending. While this segment saw a modest 1.8% increase, reaching $90.6 million, overall costs climbed to $216.4 million for the quarter. The focus on expense control played a significant role in trimming losses, which dropped from $28 million in Q4 2023 to $21.9 million in Q4 2024.
Expanding Client Base and Leadership Reinforcements
Freshworks continued to expand its global footprint, adding notable clients in the last quarter. The roster now includes:
- New Balance
- Rawlings Sporting Goods
- Sophos
- Onfido
- Mesa Airlines
Beyond customer acquisition, the company also strengthened its leadership team. Srinivasan Raghavan was appointed Chief Product Officer, while Venkitesh Subramanian joined as Senior Vice President of Product Management, Customer Experience.
Future Outlook: Aiming for $809 Million in 2025
Freshworks has set an ambitious revenue target for 2025. The company projects revenue between $190 million and $193 million in Q1, setting the pace for an expected full-year total of $809 million.
This forecast underscores continued momentum, despite economic uncertainties in the SaaS sector. If Freshworks maintains its growth trajectory while managing costs effectively, it could inch closer to profitability in the coming quarters.
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