Software-as-a-Service (SaaS) company Freshworks registered a 5.3% Q-o-Q (Quarter-on-Quarter) growth during its second quarter ending June 2023. The net loss of the company dwindled by 17.8% during the same period.
Freshwork’s revenue from operations grew 5.3% to $145 million in the second quarter from $137.7 million in the first quarter of the calendar year, according to the SEC filing.
Freshworks provides marketing, sales, support, and IT solutions through a portfolio of products: Freshservice, Freshdesk, Freshmarketer, Freshchat, and Freshsales. According to the company, the number of customers who contributed more than $5000 to annual revenue increased 18% YoY to 19,105.
During Q2, the company added notable clients such as Claremont McKenna College, The State of Hawaii, Houston Museum of Natural Science, Pitchbook, and Smart Recruiters among others.
With no significant changes in its sales & marketing, research and development, general administrative costs, the overall expenses for the Nasdaq-listed company in the same period amounted to $180 million. This includes $54.2 stock-based compensation expenses, which is a non-cash expenditure.
The controlled expenditure helped Freshworks shrink the overall loss by 17.8% to $35 million in Q2 CY23 from $42.6 in Q1 CY23. Freshworks is expecting a revenue between $149-151 in the next quarter and $587-$595 million in revenue for the complete calendar year.
During Q2, New York-based investment firm Tiger Global sold its entire stake in Freshworks. According to a report by The Arc, Tiger offloaded its remaining 23% stake since the SaaS company went IPO in 2021
