Freshworks Q3 revenue beats estimate, jumps 37% amid tightening macro conditions

US-based customer and employee engagement software provider Freshworks reported a 37% jump in its third quarter (Q3) revenue in terms of constant currency, even as operating losses widened to $3.1 million year-on-year (YoY), amid a tight macro environment marked by high inflation, greater scrutiny on tech spending, and recessionary trends across the western markets.

Freshworks beat analyst estimates to report $128 million in revenue in the quarter-ended September 30, and held its annual guidance at $494-496 million, even as losses touched $3.1 million, up from $1.5 million last year. Freshworks had guided that its Q3 losses would come in at $12.5-14.5 million. Sequentially, operating losses had stood at $15.4 million in the previous quarter.