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Freshworks Inc. (FRSH) is a provider of modern SaaS (Software-as-a-Service) products designed to enhance customer and employee experiences. The company offers cloud-based software solutions that help businesses improve customer engagement and streamline employee service management. Freshworks integrates generative AI into its products to deliver innovative and efficient service solutions.
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Subscription Services - Provides access to cloud-based software products, including Freshdesk (customer service), Freshservice (IT service management), Freshsales (sales force automation), Freshmarketer (marketing automation), and Freshchat (messaging/chat).
- Freshdesk - Focuses on customer service and support.
- Freshservice - Offers IT and employee service management solutions.
- Freshsales - Automates sales force processes.
- Freshmarketer - Enhances marketing automation capabilities.
- Freshchat - Facilitates messaging and chat functionalities.
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Professional Services - Offers product configuration, data migration, systems integration, and training to help customers optimize their use of Freshworks products.
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Software Licenses and Maintenance - Includes software licenses and associated maintenance services introduced after the acquisition of Device42 in June 2024. Expands offerings to IT asset management solutions.
| Name | Position | External Roles | Short Bio | |
|---|---|---|---|---|
Dennis M. Woodside Executive | Chief Executive Officer and President | Board Member at Boys & Girls Club of the Peninsula | Dennis Woodside became CEO on May 1, 2024, after serving as President since September 2022. He previously held leadership roles at Impossible Foods, Dropbox, Motorola Mobility, and Google. | |
Mika Yamamoto Executive | Chief Customer and Marketing Officer | None | Mika Yamamoto joined Freshworks in November 2023. She leads marketing, SMB/commercial sales, and customer success teams. Previously held leadership roles at F5, Marketo, SAP, and Amazon. | |
Philippa Lawrence Executive | Chief Accounting Officer and Principal Accounting Officer | None | Philippa Lawrence joined Freshworks in August 2024. She is a Chartered Accountant and previously held senior accounting roles at Workday, Katerra, and Brocade. | |
Tyler Sloat Executive | Chief Financial Officer and Chief Operating Officer | None | Tyler Sloat joined as CFO in April 2020 and was appointed COO on August 5, 2024. He previously served as CFO at Zuora and holds an MBA from Stanford. | |
Barry Padgett Board | Director | CEO and Board Member at Amperity; Board Member at Duetto Research | Barry Padgett has been a director since February 2020. He is currently the CEO of Amperity and serves on its board as well as the board of Duetto Research. | |
Frank Pelzer Board | Director | CFO at F5, Inc. | Frank Pelzer joined the board in July 2023 and serves on the Audit Committee. He is also the CFO of F5, Inc. and has extensive financial leadership experience. | |
Jennifer Taylor Board | Director | President of Plaid Inc. | Jennifer Taylor joined the board in September 2021. She is currently the President of Plaid and previously held leadership roles at Cloudflare and Salesforce. | |
Randy Gottfried Board | Director | Board Member at Attentive Mobile | Randy Gottfried has been a director since September 2018. He previously served as CFO at AppDynamics and has extensive board experience. | |
Rathna Girish Mathrubootham Board | Executive Chairman and Chairman of the Board | None | Co-founder of Freshworks, Girish served as CEO from October 2010 to May 2024. He transitioned to Executive Chairman and continues as Chairman of the Board. | |
Roxanne S. Austin Board | Director | Board Member at Verizon Communications, CrowdStrike, and AbbVie | Roxanne Austin has been a director since May 2021. She is the President and CEO of Austin Investment Advisors and has extensive board experience. | |
Sameer Gandhi Board | Director | Partner at Accel; Board Member at CrowdStrike | Sameer Gandhi has been a director since December 2019. He is a partner at Accel and serves on the boards of CrowdStrike and several private companies. | |
Zachary Nelson Board | Director | Board Member at PagerDuty, Acumatica, and Snyk | Zachary Nelson has been a director since August 2021. He was previously the CEO of NetSuite, which was acquired by Oracle. |
- With net dollar retention projected to remain at approximately 104% due to continued pressure on expansion rates, which have been under pressure for several years, what specific strategies are you implementing to drive customer expansion and improve net dollar retention in 2025?
- The CX business grew at 7% year-over-year on a constant currency basis, which is relatively modest compared to the EX growth; what plans do you have to accelerate growth in the CX segment, and how are you addressing competitive pressures in this market?
- Your guidance indicates lower revenue growth rates in the second half of 2025, with expectations of 11% growth in Q3 and Q4 compared to higher growth in the first half; what factors are contributing to this anticipated deceleration, and how are you planning to mitigate these challenges?
- You have decided not to break out Device42's revenue contribution separately going forward, even though it contributed $10.3 million in Q4; how should investors think about Device42's revenue impact and growth trajectory, and how integral is it to your overall EX strategy?
- Non-GAAP operating margin is expected to decline to approximately 13% in Q2 2025 due to increased costs from the annual merit cycle before improving later in the year; can you elaborate on the nature of these cost increases and your confidence in achieving the targeted margin improvements in the second half?
Competitors mentioned in the company's latest 10K filing.
| Company | Description |
|---|---|
For CX products, with regards to CS, the company primarily faces competition from CS suites, such as this competitor, and with regards to customer relationship management, it primarily faces competition from full-featured vendors, such as this competitor. | |
Zendesk | For CX products, with regards to CS, the company primarily faces competition from CS suites, such as this competitor. |
For CX products, with regards to CS, the company primarily faces competition from legacy vendors, such as this competitor, and with regards to customer relationship management, it primarily faces competition from legacy vendors, such as this competitor. | |
For CX products, with regards to CS, the company primarily faces competition from legacy vendors, such as this competitor, and with regards to customer relationship management, it primarily faces competition from legacy vendors, such as this competitor. | |
For CX products, with regards to customer relationship management, the company primarily faces competition from full-featured vendors, such as this competitor. | |
For CX products, with regards to customer relationship management, the company primarily faces competition from full-featured vendors, such as this competitor. | |
Sage | For CX products, with regards to customer relationship management, the company primarily faces competition from legacy vendors, such as this competitor. |
For EX products, the company primarily faces competition from traditional vendors, such as this competitor. | |
BMC | For EX products, the company primarily faces competition from traditional vendors, such as this competitor. |
Ivanti/Cherwell | For EX products, the company primarily faces competition from traditional vendors, such as this competitor. |
For EX products, the company primarily faces competition from modern pure-play vendors, such as this competitor. |
Notable M&A activity and strategic investments in the past 3 years.
| Company | Year | Details |
|---|---|---|
D42 Parent, Inc. (Device42) | 2024 | Freshworks completed the acquisition on June 6, 2024, paying approximately $238.1 million (a mix of $225.3 million in cash and $12.9 million in equity) and structured the deal with retention payments, an equity rollover, and customary adjustments. The acquisition, which transformed Device42 into a wholly-owned subsidiary of Freshworks, was strategically aimed at enhancing IT solutions for midmarket and enterprise companies and was subject to regulatory and shareholder approvals. |