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Freshworks Inc. helps businesses handle employees’ service needs and support their customers. Freshservice anchors its employee-experience offering, while Freshdesk provides customer-service software. These two products account for substantially all revenue. Its Freddy AI tools can resolve issues through conversation, summarize support tickets and suggest responses.
Businesses pay mainly for subscriptions, generally priced by the number of service agents using the software and the features included. Each product generally requires a separate subscription. Customers can start with free trials; revenue depends on converting them to paid plans, retaining subscribers and persuading customers to add users, upgrade plans or adopt more products. Larger businesses account for most of its recurring revenue, although it also serves smaller companies. Customers have no obligation to renew when their contracts expire.
Freshworks relies on Amazon Web Services for the vast majority of its cloud infrastructure. Privacy laws and cross-border data-transfer rules constrain how and where it can process personal information, and can restrict the data processing needed to deliver its services.
The risk section is the longest, dullest part of the filing. This keeps only what can really hurt you: where it hits, how hard, when it plays out.
Every company claims an edge. Each one is checked against hard numbers like margins and returns: which hold, and which line gives way first.
Freshworks’ results also hinge on customer-service competition from Zendesk and Intercom, two important rivals missing from this list.
ServiceNow competes for the business spending Freshworks targets with Freshservice: software that helps IT and other employee-service teams manage their work, with further overlap in customer service. Watch ServiceNow’s technology and employee-service offerings for competitive pressure on Freshservice.
Atlassian’s Jira Service Management competes with Freshworks’ Freshservice for businesses buying software to handle IT support and service requests across the company. For Freshworks holders, Jira Service Management developments are more directly relevant than Atlassian’s broader team-collaboration sales.
Salesforce competes with Freshworks for businesses’ spending on software to serve customers, manage sales and maintain customer relationships. Watch its customer-service and sales offerings for pressure on Freshworks’ Freshdesk and Freshsales, rather than treating all Salesforce subscription sales as equally relevant.
HubSpot competes with Freshworks for business customers buying customer-service, sales, marketing and customer-record software. Its paid Hubs, available separately or together, are the offerings to watch against Freshworks’ customer-experience applications.
PagerDuty competes with Freshworks’ FireHydrant for teams buying software to coordinate their response when technology incidents occur.
monday.com competes with Freshworks for businesses buying service-management and customer-relationship software through paid cloud subscriptions. Watch its service and CRM products specifically: those overlap with Freshservice and Freshworks’ customer-relationship applications.
Sprinklr Service competes with Freshworks’ Freshdesk suite for enterprise teams buying software to handle customer support across voice and digital channels. Sprinklr Service product news is the clearest point of comparison for Freshdesk, rather than Sprinklr’s social-media or marketing offerings.
Freshworks depends on Amazon’s AWS for the vast majority of the cloud infrastructure it buys to run its software, so AWS outages and pricing changes can affect service delivery and costs. Watch AWS availability and contract terms: switching providers would take significant time and expense and could disrupt Freshworks’ services.
SERVICENOW, INC. earningsNOW
ServiceNow's report will show demand for employee-service software, the business spending it competes for with Freshworks' Freshservice.
Focus on ServiceNow's technology and employee-service business, not its overall results as a proxy for Freshservice. Strength there would show companies are still buying IT and employee-service tools, supporting the market Freshservice competes in; weakness would suggest that shared spending pool may be tightening.
Freshworks Inc. earningsThis company
Freshworks relies mainly on Freshservice and Freshdesk subscriptions, and this report will show whether existing customers and new wins are both driving growth.
Read revenue from existing customers alongside revenue from new customers, and watch net dollar retention, which measures expansion in the existing customer base after contraction and churn. A stronger existing-customer contribution would show renewals and expansion supporting growth; if it weakens while total revenue still grows, growth is relying more on new wins, with churn or contraction a concern.
