Damon Kogan's questions to Freshworks Inc (FRSH) leadership • Q3 2024
Question
Damon Kogan, on for Ryan MacWilliams, asked about linearity during the quarter and visibility into Q4 and 2025. He also questioned if a macro improvement is necessary to return to a 110% net dollar retention (NRR) rate.
Answer
COO and CFO Tyler Sloat described a mixed linearity, with the SMB business being steady while the larger field-led business is more back-end loaded. Both he and CEO Dennis Woodside stated that a macro improvement is not required for growth, as they are focused on internal levers like improving churn and expanding with customers via AI and add-on products. While a better macro would be a tailwind, they are not relying on it.