Jonathan Macari

Jonathan Macari asked if Freshworks is observing a 'halo effect' where customers seeing value from Freddy AI products on one side of the business (CX or EX) are subsequently unlocking cross-sell opportunities on the other side.

Answer

Dennis Woodside, CEO and President, confirmed that AI is driving greater expansion and retention, evidenced by a Net Dollar Retention rate of 116% for customers using AI paid SKUs, up from 112% in the prior quarter. He emphasized that this indicates customers are seeing clear value from AI capabilities, leading to enhanced relationships and positive upside, with education being key for broader adoption.