{"id":310886,"date":"2025-04-02T07:09:40","date_gmt":"2025-04-02T14:09:40","guid":{"rendered":"https:\/\/www.saastr.com\/?p=310886"},"modified":"2025-04-02T09:16:50","modified_gmt":"2025-04-02T16:16:50","slug":"5-interesting-learnings-from-freshworks-at-800000000-in-arr","status":"publish","type":"post","link":"https:\/\/www.saastr.com\/5-interesting-learnings-from-freshworks-at-800000000-in-arr\/","title":{"rendered":"5 Interesting Learnings from Freshworks at $800,000,000 in ARR"},"content":{"rendered":"<p><img data-recalc-dims=\"1\" decoding=\"async\" class=\"aligncenter size-full wp-image-310887 lazyload\" data-src=\"https:\/\/i0.wp.com\/www.saastr.com\/wp-content\/uploads\/2025\/04\/fw.webp?resize=980%2C553&#038;quality=65&#038;ssl=1\" alt=\"\" width=\"980\" height=\"553\" data-srcset=\"https:\/\/www.saastr.com\/wp-content\/uploads\/2025\/04\/fw.webp 980w, https:\/\/www.saastr.com\/wp-content\/uploads\/2025\/04\/fw-480x271.webp 480w\" data-sizes=\"(min-width: 0px) and (max-width: 480px) 480px, (min-width: 481px) 980px, 100vw\" src=\"data:image\/gif;base64,R0lGODlhAQABAAAAACH5BAEKAAEALAAAAAABAAEAAAICTAEAOw==\" style=\"--smush-placeholder-width: 980px; --smush-placeholder-aspect-ratio: 980\/553;\" \/><noscript><img data-recalc-dims=\"1\" decoding=\"async\" class=\"aligncenter size-full wp-image-310887\" src=\"https:\/\/i0.wp.com\/www.saastr.com\/wp-content\/uploads\/2025\/04\/fw.webp?resize=980%2C553&#038;quality=65&#038;ssl=1\" alt=\"\" width=\"980\" height=\"553\" srcset=\"https:\/\/www.saastr.com\/wp-content\/uploads\/2025\/04\/fw.webp 980w, https:\/\/www.saastr.com\/wp-content\/uploads\/2025\/04\/fw-480x271.webp 480w\" sizes=\"(min-width: 0px) and (max-width: 480px) 480px, (min-width: 481px) 980px, 100vw\" \/><\/noscript><\/p>\n<p>So Freshworks started off as a low-end Zendesk competitor (Freshdesk), but relatively early expanded into a broader suite of related products for service and support, and most of its growth today is fueled by its lower-end competitor to ServiceNow, it&#8217;s &#8220;EX&#8221; products.\u00a0 As you can see below, it went aggressively multiproduct by Year 4:<\/p>\n<p><img data-recalc-dims=\"1\" decoding=\"async\" class=\"aligncenter size-full wp-image-310980 lazyload\" data-src=\"https:\/\/i0.wp.com\/www.saastr.com\/wp-content\/uploads\/2025\/04\/history-scaled.jpeg?resize=1000%2C406&#038;quality=70&#038;ssl=1\" alt=\"\" width=\"1000\" height=\"406\" data-srcset=\"https:\/\/www.saastr.com\/wp-content\/uploads\/2025\/04\/history-scaled.jpeg 1000w, https:\/\/www.saastr.com\/wp-content\/uploads\/2025\/04\/history-980x398.jpeg 980w, https:\/\/www.saastr.com\/wp-content\/uploads\/2025\/04\/history-480x195.jpeg 480w\" data-sizes=\"(min-width: 0px) and (max-width: 480px) 480px, (min-width: 481px) and (max-width: 980px) 980px, (min-width: 981px) 1000px, 100vw\" src=\"data:image\/gif;base64,R0lGODlhAQABAAAAACH5BAEKAAEALAAAAAABAAEAAAICTAEAOw==\" style=\"--smush-placeholder-width: 1000px; --smush-placeholder-aspect-ratio: 1000\/406;\" \/><noscript><img data-recalc-dims=\"1\" decoding=\"async\" class=\"aligncenter size-full wp-image-310980\" src=\"https:\/\/i0.wp.com\/www.saastr.com\/wp-content\/uploads\/2025\/04\/history-scaled.jpeg?resize=1000%2C406&#038;quality=70&#038;ssl=1\" alt=\"\" width=\"1000\" height=\"406\" srcset=\"https:\/\/www.saastr.com\/wp-content\/uploads\/2025\/04\/history-scaled.jpeg 1000w, https:\/\/www.saastr.com\/wp-content\/uploads\/2025\/04\/history-980x398.jpeg 980w, https:\/\/www.saastr.com\/wp-content\/uploads\/2025\/04\/history-480x195.jpeg 480w\" sizes=\"(min-width: 0px) and (max-width: 480px) 480px, (min-width: 481px) and (max-width: 980px) 980px, (min-width: 981px) 1000px, 100vw\" \/><\/noscript><\/p>\n<p>The support space has been turned upside down by AI, with as much as 40% of all support issues now handled by AI at many leaders.\u00a0 It&#8217;s one of the fastest-changing spaces in B2B.<\/p>\n<h3>And Freshworks has itself evolved.\u00a0 Today it&#8217;s at:<\/h3>\n<ul>\n<li>$800m ARR<\/li>\n<li>Growing 22%<\/li>\n<li>20% Free Cash Flow Margins<\/li>\n<li>Modest re-acceleration in revenue growth and new customer count &#8212; but not NRR<\/li>\n<li>Roots are SMB, but 60% of ARR comes from mid-market and enterprise today<\/li>\n<li>And a $4B market cap, so 5x ARR<\/li>\n<\/ul>\n<p><strong>Freshworks is getting a bit of a second wind, which is great to see!\u00a0 Not an epic one, but a real one.<\/strong><\/p>\n<p>The 5x ARR multiple is a bit of a bummer, however,<\/p>\n<h3>5 Interesting Learnings:<\/h3>\n<h3><strong>#1.\u00a0 Modest Reacceleration Past Two Quarters<\/strong><\/h3>\n<p>Sometime in Q3&#8217;24 might have been the end of the &#8220;downturn&#8221; in many B2B categories, per HubSpot and many other B2B leaders, and also here per Freshworks.\u00a0 You can see Freshworks is growing materially faster now than last year &#8212; 22% vs. 20%.<\/p>\n<p><a href=\"https:\/\/ir.freshworks.com\/static-files\/e78649f0-f14b-43a3-b0b1-e7fab13b25d3\"><img data-recalc-dims=\"1\" decoding=\"async\" class=\"aligncenter size-large wp-image-310888 lazyload\" data-src=\"https:\/\/i0.wp.com\/www.saastr.com\/wp-content\/uploads\/2025\/04\/Screenshot-2025-04-01-at-10.13.21%E2%80%AFAM.png?resize=1080%2C609&#038;quality=70&#038;ssl=1\" alt=\"\" width=\"1080\" height=\"609\" data-srcset=\"https:\/\/i0.wp.com\/www.saastr.com\/wp-content\/uploads\/2025\/04\/Screenshot-2025-04-01-at-10.13.21%E2%80%AFAM.png?resize=1915%2C1080&amp;quality=70&amp;ssl=1 1915w, https:\/\/i0.wp.com\/www.saastr.com\/wp-content\/uploads\/2025\/04\/Screenshot-2025-04-01-at-10.13.21%E2%80%AFAM.png?resize=600%2C338&amp;quality=70&amp;ssl=1 600w, https:\/\/i0.wp.com\/www.saastr.com\/wp-content\/uploads\/2025\/04\/Screenshot-2025-04-01-at-10.13.21%E2%80%AFAM.png?resize=768%2C433&amp;quality=70&amp;ssl=1 768w, https:\/\/i0.wp.com\/www.saastr.com\/wp-content\/uploads\/2025\/04\/Screenshot-2025-04-01-at-10.13.21%E2%80%AFAM.png?resize=1536%2C866&amp;quality=70&amp;ssl=1 1536w, https:\/\/i0.wp.com\/www.saastr.com\/wp-content\/uploads\/2025\/04\/Screenshot-2025-04-01-at-10.13.21%E2%80%AFAM.png?resize=1080%2C609&amp;quality=70&amp;ssl=1 1080w, https:\/\/i0.wp.com\/www.saastr.com\/wp-content\/uploads\/2025\/04\/Screenshot-2025-04-01-at-10.13.21%E2%80%AFAM.png?resize=1280%2C722&amp;quality=70&amp;ssl=1 1280w, https:\/\/i0.wp.com\/www.saastr.com\/wp-content\/uploads\/2025\/04\/Screenshot-2025-04-01-at-10.13.21%E2%80%AFAM.png?resize=980%2C553&amp;quality=70&amp;ssl=1 980w, https:\/\/i0.wp.com\/www.saastr.com\/wp-content\/uploads\/2025\/04\/Screenshot-2025-04-01-at-10.13.21%E2%80%AFAM.png?resize=480%2C271&amp;quality=70&amp;ssl=1 480w, https:\/\/i0.wp.com\/www.saastr.com\/wp-content\/uploads\/2025\/04\/Screenshot-2025-04-01-at-10.13.21%E2%80%AFAM.png?w=1000&amp;quality=70&amp;ssl=1 1000w\" data-sizes=\"(max-width: 1080px) 100vw, 1080px\" src=\"data:image\/gif;base64,R0lGODlhAQABAAAAACH5BAEKAAEALAAAAAABAAEAAAICTAEAOw==\" style=\"--smush-placeholder-width: 1080px; --smush-placeholder-aspect-ratio: 1080\/609;\" \/><noscript><img data-recalc-dims=\"1\" decoding=\"async\" class=\"aligncenter size-large wp-image-310888\" src=\"https:\/\/i0.wp.com\/www.saastr.com\/wp-content\/uploads\/2025\/04\/Screenshot-2025-04-01-at-10.13.21%E2%80%AFAM.png?resize=1080%2C609&#038;quality=70&#038;ssl=1\" alt=\"\" width=\"1080\" height=\"609\" srcset=\"https:\/\/i0.wp.com\/www.saastr.com\/wp-content\/uploads\/2025\/04\/Screenshot-2025-04-01-at-10.13.21%E2%80%AFAM.png?resize=1915%2C1080&amp;quality=70&amp;ssl=1 1915w, https:\/\/i0.wp.com\/www.saastr.com\/wp-content\/uploads\/2025\/04\/Screenshot-2025-04-01-at-10.13.21%E2%80%AFAM.png?resize=600%2C338&amp;quality=70&amp;ssl=1 600w, https:\/\/i0.wp.com\/www.saastr.com\/wp-content\/uploads\/2025\/04\/Screenshot-2025-04-01-at-10.13.21%E2%80%AFAM.png?resize=768%2C433&amp;quality=70&amp;ssl=1 768w, https:\/\/i0.wp.com\/www.saastr.com\/wp-content\/uploads\/2025\/04\/Screenshot-2025-04-01-at-10.13.21%E2%80%AFAM.png?resize=1536%2C866&amp;quality=70&amp;ssl=1 1536w, https:\/\/i0.wp.com\/www.saastr.com\/wp-content\/uploads\/2025\/04\/Screenshot-2025-04-01-at-10.13.21%E2%80%AFAM.png?resize=1080%2C609&amp;quality=70&amp;ssl=1 1080w, https:\/\/i0.wp.com\/www.saastr.com\/wp-content\/uploads\/2025\/04\/Screenshot-2025-04-01-at-10.13.21%E2%80%AFAM.png?resize=1280%2C722&amp;quality=70&amp;ssl=1 1280w, https:\/\/i0.wp.com\/www.saastr.com\/wp-content\/uploads\/2025\/04\/Screenshot-2025-04-01-at-10.13.21%E2%80%AFAM.png?resize=980%2C553&amp;quality=70&amp;ssl=1 980w, https:\/\/i0.wp.com\/www.saastr.com\/wp-content\/uploads\/2025\/04\/Screenshot-2025-04-01-at-10.13.21%E2%80%AFAM.png?resize=480%2C271&amp;quality=70&amp;ssl=1 480w, https:\/\/i0.wp.com\/www.saastr.com\/wp-content\/uploads\/2025\/04\/Screenshot-2025-04-01-at-10.13.21%E2%80%AFAM.png?w=1000&amp;quality=70&amp;ssl=1 1000w\" sizes=\"(max-width: 1080px) 100vw, 1080px\" \/><\/noscript><\/a><\/p>\n<h3><strong>#2.\u00a0 Customer Count Also Modestly Re-Accelerating<\/strong><\/h3>\n<p>Freshworks&#8217; customer count was flat a year ago, but now is slowly growing again.\u00a0 Freshworks added 2,600 net customers last quarter, its largest net gain in four years.<\/p>\n<p><a href=\"https:\/\/ir.freshworks.com\/static-files\/e78649f0-f14b-43a3-b0b1-e7fab13b25d3\"><img data-recalc-dims=\"1\" decoding=\"async\" class=\"aligncenter size-large wp-image-310889 lazyload\" data-src=\"https:\/\/i0.wp.com\/www.saastr.com\/wp-content\/uploads\/2025\/04\/Screenshot-2025-04-01-at-10.15.01%E2%80%AFAM.png?resize=1080%2C608&#038;quality=70&#038;ssl=1\" alt=\"\" width=\"1080\" height=\"608\" data-srcset=\"https:\/\/i0.wp.com\/www.saastr.com\/wp-content\/uploads\/2025\/04\/Screenshot-2025-04-01-at-10.15.01%E2%80%AFAM.png?resize=1920%2C1080&amp;quality=70&amp;ssl=1 1920w, https:\/\/i0.wp.com\/www.saastr.com\/wp-content\/uploads\/2025\/04\/Screenshot-2025-04-01-at-10.15.01%E2%80%AFAM.png?resize=600%2C337&amp;quality=70&amp;ssl=1 600w, https:\/\/i0.wp.com\/www.saastr.com\/wp-content\/uploads\/2025\/04\/Screenshot-2025-04-01-at-10.15.01%E2%80%AFAM.png?resize=768%2C431&amp;quality=70&amp;ssl=1 768w, https:\/\/i0.wp.com\/www.saastr.com\/wp-content\/uploads\/2025\/04\/Screenshot-2025-04-01-at-10.15.01%E2%80%AFAM.png?resize=1536%2C863&amp;quality=70&amp;ssl=1 1536w, https:\/\/i0.wp.com\/www.saastr.com\/wp-content\/uploads\/2025\/04\/Screenshot-2025-04-01-at-10.15.01%E2%80%AFAM.png?resize=1080%2C607&amp;quality=70&amp;ssl=1 1080w, https:\/\/i0.wp.com\/www.saastr.com\/wp-content\/uploads\/2025\/04\/Screenshot-2025-04-01-at-10.15.01%E2%80%AFAM.png?resize=1280%2C719&amp;quality=70&amp;ssl=1 1280w, https:\/\/i0.wp.com\/www.saastr.com\/wp-content\/uploads\/2025\/04\/Screenshot-2025-04-01-at-10.15.01%E2%80%AFAM.png?resize=980%2C551&amp;quality=70&amp;ssl=1 980w, https:\/\/i0.wp.com\/www.saastr.com\/wp-content\/uploads\/2025\/04\/Screenshot-2025-04-01-at-10.15.01%E2%80%AFAM.png?resize=480%2C270&amp;quality=70&amp;ssl=1 480w, https:\/\/i0.wp.com\/www.saastr.com\/wp-content\/uploads\/2025\/04\/Screenshot-2025-04-01-at-10.15.01%E2%80%AFAM.png?w=1000&amp;quality=70&amp;ssl=1 1000w\" data-sizes=\"(max-width: 1080px) 100vw, 1080px\" src=\"data:image\/gif;base64,R0lGODlhAQABAAAAACH5BAEKAAEALAAAAAABAAEAAAICTAEAOw==\" style=\"--smush-placeholder-width: 1080px; --smush-placeholder-aspect-ratio: 1080\/608;\" \/><noscript><img data-recalc-dims=\"1\" decoding=\"async\" class=\"aligncenter size-large wp-image-310889\" src=\"https:\/\/i0.wp.com\/www.saastr.com\/wp-content\/uploads\/2025\/04\/Screenshot-2025-04-01-at-10.15.01%E2%80%AFAM.png?resize=1080%2C608&#038;quality=70&#038;ssl=1\" alt=\"\" width=\"1080\" height=\"608\" srcset=\"https:\/\/i0.wp.com\/www.saastr.com\/wp-content\/uploads\/2025\/04\/Screenshot-2025-04-01-at-10.15.01%E2%80%AFAM.png?resize=1920%2C1080&amp;quality=70&amp;ssl=1 1920w, https:\/\/i0.wp.com\/www.saastr.com\/wp-content\/uploads\/2025\/04\/Screenshot-2025-04-01-at-10.15.01%E2%80%AFAM.png?resize=600%2C337&amp;quality=70&amp;ssl=1 600w, https:\/\/i0.wp.com\/www.saastr.com\/wp-content\/uploads\/2025\/04\/Screenshot-2025-04-01-at-10.15.01%E2%80%AFAM.png?resize=768%2C431&amp;quality=70&amp;ssl=1 768w, https:\/\/i0.wp.com\/www.saastr.com\/wp-content\/uploads\/2025\/04\/Screenshot-2025-04-01-at-10.15.01%E2%80%AFAM.png?resize=1536%2C863&amp;quality=70&amp;ssl=1 1536w, https:\/\/i0.wp.com\/www.saastr.com\/wp-content\/uploads\/2025\/04\/Screenshot-2025-04-01-at-10.15.01%E2%80%AFAM.png?resize=1080%2C607&amp;quality=70&amp;ssl=1 1080w, https:\/\/i0.wp.com\/www.saastr.com\/wp-content\/uploads\/2025\/04\/Screenshot-2025-04-01-at-10.15.01%E2%80%AFAM.png?resize=1280%2C719&amp;quality=70&amp;ssl=1 1280w, https:\/\/i0.wp.com\/www.saastr.com\/wp-content\/uploads\/2025\/04\/Screenshot-2025-04-01-at-10.15.01%E2%80%AFAM.png?resize=980%2C551&amp;quality=70&amp;ssl=1 980w, https:\/\/i0.wp.com\/www.saastr.com\/wp-content\/uploads\/2025\/04\/Screenshot-2025-04-01-at-10.15.01%E2%80%AFAM.png?resize=480%2C270&amp;quality=70&amp;ssl=1 480w, https:\/\/i0.wp.com\/www.saastr.com\/wp-content\/uploads\/2025\/04\/Screenshot-2025-04-01-at-10.15.01%E2%80%AFAM.png?w=1000&amp;quality=70&amp;ssl=1 1000w\" sizes=\"(max-width: 1080px) 100vw, 1080px\" \/><\/noscript><\/a><\/p>\n<h3><strong>#3.\u00a0 NDR\/NRR Hasn&#8217;t Bounced Back, However<\/strong><\/h3>\n<p>NRR is still flat \/ down.\u00a0 You really have to earn it in SaaS these days.\u00a0 I suspect this is due to increased churn and contraction in smaller accounts, as the larger customers by their nature should have higher NRR.<\/p>\n<p><a href=\"https:\/\/ir.freshworks.com\/static-files\/e78649f0-f14b-43a3-b0b1-e7fab13b25d3\"><img data-recalc-dims=\"1\" decoding=\"async\" class=\"aligncenter size-large wp-image-310890 lazyload\" data-src=\"https:\/\/i0.wp.com\/www.saastr.com\/wp-content\/uploads\/2025\/04\/Screenshot-2025-04-01-at-10.16.53%E2%80%AFAM.png?resize=1080%2C607&#038;quality=70&#038;ssl=1\" alt=\"\" width=\"1080\" height=\"607\" data-srcset=\"https:\/\/i0.wp.com\/www.saastr.com\/wp-content\/uploads\/2025\/04\/Screenshot-2025-04-01-at-10.16.53%E2%80%AFAM.png?resize=1920%2C1079&amp;quality=70&amp;ssl=1 1920w, https:\/\/i0.wp.com\/www.saastr.com\/wp-content\/uploads\/2025\/04\/Screenshot-2025-04-01-at-10.16.53%E2%80%AFAM.png?resize=600%2C337&amp;quality=70&amp;ssl=1 600w, https:\/\/i0.wp.com\/www.saastr.com\/wp-content\/uploads\/2025\/04\/Screenshot-2025-04-01-at-10.16.53%E2%80%AFAM.png?resize=768%2C432&amp;quality=70&amp;ssl=1 768w, https:\/\/i0.wp.com\/www.saastr.com\/wp-content\/uploads\/2025\/04\/Screenshot-2025-04-01-at-10.16.53%E2%80%AFAM.png?resize=1536%2C863&amp;quality=70&amp;ssl=1 1536w, https:\/\/i0.wp.com\/www.saastr.com\/wp-content\/uploads\/2025\/04\/Screenshot-2025-04-01-at-10.16.53%E2%80%AFAM.png?resize=1080%2C607&amp;quality=70&amp;ssl=1 1080w, https:\/\/i0.wp.com\/www.saastr.com\/wp-content\/uploads\/2025\/04\/Screenshot-2025-04-01-at-10.16.53%E2%80%AFAM.png?resize=1280%2C719&amp;quality=70&amp;ssl=1 1280w, https:\/\/i0.wp.com\/www.saastr.com\/wp-content\/uploads\/2025\/04\/Screenshot-2025-04-01-at-10.16.53%E2%80%AFAM.png?resize=980%2C551&amp;quality=70&amp;ssl=1 980w, https:\/\/i0.wp.com\/www.saastr.com\/wp-content\/uploads\/2025\/04\/Screenshot-2025-04-01-at-10.16.53%E2%80%AFAM.png?resize=480%2C270&amp;quality=70&amp;ssl=1 480w, https:\/\/i0.wp.com\/www.saastr.com\/wp-content\/uploads\/2025\/04\/Screenshot-2025-04-01-at-10.16.53%E2%80%AFAM.png?w=1000&amp;quality=70&amp;ssl=1 1000w\" data-sizes=\"(max-width: 1080px) 100vw, 1080px\" src=\"data:image\/gif;base64,R0lGODlhAQABAAAAACH5BAEKAAEALAAAAAABAAEAAAICTAEAOw==\" style=\"--smush-placeholder-width: 1080px; --smush-placeholder-aspect-ratio: 1080\/607;\" \/><noscript><img data-recalc-dims=\"1\" decoding=\"async\" class=\"aligncenter size-large wp-image-310890\" src=\"https:\/\/i0.wp.com\/www.saastr.com\/wp-content\/uploads\/2025\/04\/Screenshot-2025-04-01-at-10.16.53%E2%80%AFAM.png?resize=1080%2C607&#038;quality=70&#038;ssl=1\" alt=\"\" width=\"1080\" height=\"607\" srcset=\"https:\/\/i0.wp.com\/www.saastr.com\/wp-content\/uploads\/2025\/04\/Screenshot-2025-04-01-at-10.16.53%E2%80%AFAM.png?resize=1920%2C1079&amp;quality=70&amp;ssl=1 1920w, https:\/\/i0.wp.com\/www.saastr.com\/wp-content\/uploads\/2025\/04\/Screenshot-2025-04-01-at-10.16.53%E2%80%AFAM.png?resize=600%2C337&amp;quality=70&amp;ssl=1 600w, https:\/\/i0.wp.com\/www.saastr.com\/wp-content\/uploads\/2025\/04\/Screenshot-2025-04-01-at-10.16.53%E2%80%AFAM.png?resize=768%2C432&amp;quality=70&amp;ssl=1 768w, https:\/\/i0.wp.com\/www.saastr.com\/wp-content\/uploads\/2025\/04\/Screenshot-2025-04-01-at-10.16.53%E2%80%AFAM.png?resize=1536%2C863&amp;quality=70&amp;ssl=1 1536w, https:\/\/i0.wp.com\/www.saastr.com\/wp-content\/uploads\/2025\/04\/Screenshot-2025-04-01-at-10.16.53%E2%80%AFAM.png?resize=1080%2C607&amp;quality=70&amp;ssl=1 1080w, https:\/\/i0.wp.com\/www.saastr.com\/wp-content\/uploads\/2025\/04\/Screenshot-2025-04-01-at-10.16.53%E2%80%AFAM.png?resize=1280%2C719&amp;quality=70&amp;ssl=1 1280w, https:\/\/i0.wp.com\/www.saastr.com\/wp-content\/uploads\/2025\/04\/Screenshot-2025-04-01-at-10.16.53%E2%80%AFAM.png?resize=980%2C551&amp;quality=70&amp;ssl=1 980w, https:\/\/i0.wp.com\/www.saastr.com\/wp-content\/uploads\/2025\/04\/Screenshot-2025-04-01-at-10.16.53%E2%80%AFAM.png?resize=480%2C270&amp;quality=70&amp;ssl=1 480w, https:\/\/i0.wp.com\/www.saastr.com\/wp-content\/uploads\/2025\/04\/Screenshot-2025-04-01-at-10.16.53%E2%80%AFAM.png?w=1000&amp;quality=70&amp;ssl=1 1000w\" sizes=\"(max-width: 1080px) 100vw, 1080px\" \/><\/noscript><\/a><\/p>\n<h3><strong>#4.\u00a0 Biggest Growth in $50k+ Customers, Who Are 50% of Revenue<\/strong><\/h3>\n<p>The fact that NRR is flat even with $50k+ customers being the biggest driver of growth implies some contraction in smaller customers.\u00a0 In any event, like many from Zoom to Asana, the growth is mostly in bigger customers today. FBOW.\u00a0 50% of revenue is now from $50k+ customers, and 90% from $5k+ customers.<\/p>\n<p><a href=\"https:\/\/ir.freshworks.com\/static-files\/e78649f0-f14b-43a3-b0b1-e7fab13b25d3\"><img data-recalc-dims=\"1\" decoding=\"async\" class=\"aligncenter size-full wp-image-310891 lazyload\" data-src=\"https:\/\/i0.wp.com\/www.saastr.com\/wp-content\/uploads\/2025\/04\/Screenshot-2025-04-01-at-10.17.49%E2%80%AFAM.png?resize=950%2C974&#038;quality=70&#038;ssl=1\" alt=\"\" width=\"950\" height=\"974\" data-srcset=\"https:\/\/i0.wp.com\/www.saastr.com\/wp-content\/uploads\/2025\/04\/Screenshot-2025-04-01-at-10.17.49%E2%80%AFAM.png?w=950&amp;quality=70&amp;ssl=1 950w, https:\/\/i0.wp.com\/www.saastr.com\/wp-content\/uploads\/2025\/04\/Screenshot-2025-04-01-at-10.17.49%E2%80%AFAM.png?resize=585%2C600&amp;quality=70&amp;ssl=1 585w, https:\/\/i0.wp.com\/www.saastr.com\/wp-content\/uploads\/2025\/04\/Screenshot-2025-04-01-at-10.17.49%E2%80%AFAM.png?resize=768%2C787&amp;quality=70&amp;ssl=1 768w, https:\/\/i0.wp.com\/www.saastr.com\/wp-content\/uploads\/2025\/04\/Screenshot-2025-04-01-at-10.17.49%E2%80%AFAM.png?resize=480%2C492&amp;quality=70&amp;ssl=1 480w\" data-sizes=\"(max-width: 950px) 100vw, 950px\" src=\"data:image\/gif;base64,R0lGODlhAQABAAAAACH5BAEKAAEALAAAAAABAAEAAAICTAEAOw==\" style=\"--smush-placeholder-width: 950px; --smush-placeholder-aspect-ratio: 950\/974;\" \/><noscript><img data-recalc-dims=\"1\" decoding=\"async\" class=\"aligncenter size-full wp-image-310891\" src=\"https:\/\/i0.wp.com\/www.saastr.com\/wp-content\/uploads\/2025\/04\/Screenshot-2025-04-01-at-10.17.49%E2%80%AFAM.png?resize=950%2C974&#038;quality=70&#038;ssl=1\" alt=\"\" width=\"950\" height=\"974\" srcset=\"https:\/\/i0.wp.com\/www.saastr.com\/wp-content\/uploads\/2025\/04\/Screenshot-2025-04-01-at-10.17.49%E2%80%AFAM.png?w=950&amp;quality=70&amp;ssl=1 950w, https:\/\/i0.wp.com\/www.saastr.com\/wp-content\/uploads\/2025\/04\/Screenshot-2025-04-01-at-10.17.49%E2%80%AFAM.png?resize=585%2C600&amp;quality=70&amp;ssl=1 585w, https:\/\/i0.wp.com\/www.saastr.com\/wp-content\/uploads\/2025\/04\/Screenshot-2025-04-01-at-10.17.49%E2%80%AFAM.png?resize=768%2C787&amp;quality=70&amp;ssl=1 768w, https:\/\/i0.wp.com\/www.saastr.com\/wp-content\/uploads\/2025\/04\/Screenshot-2025-04-01-at-10.17.49%E2%80%AFAM.png?resize=480%2C492&amp;quality=70&amp;ssl=1 480w\" sizes=\"(max-width: 950px) 100vw, 950px\" \/><\/noscript><\/a><\/p>\n<h3><strong>#5.\u00a0 Its Roots May Be in India, But It&#8217;s as American and Global as Anyone in SaaS<\/strong><\/h3>\n<p>Freshworks&#8217; roots are in India, and it&#8217;s a hero company to many in SaaS in India.\u00a0 But the team has always been split between the U.S. and India, and the global revenue distribution is pretty similar to HubSpot&#8217;s overall.\u00a0 47% of revenue in U.S., 53% in ROW:<\/p>\n<p><a href=\"https:\/\/ir.freshworks.com\/static-files\/e78649f0-f14b-43a3-b0b1-e7fab13b25d3\"><img data-recalc-dims=\"1\" decoding=\"async\" class=\"aligncenter size-large wp-image-310892 lazyload\" data-src=\"https:\/\/i0.wp.com\/www.saastr.com\/wp-content\/uploads\/2025\/04\/Screenshot-2025-04-01-at-10.20.01%E2%80%AFAM.png?resize=1080%2C618&#038;quality=70&#038;ssl=1\" alt=\"\" width=\"1080\" height=\"618\" data-srcset=\"https:\/\/i0.wp.com\/www.saastr.com\/wp-content\/uploads\/2025\/04\/Screenshot-2025-04-01-at-10.20.01%E2%80%AFAM.png?resize=1888%2C1080&amp;quality=70&amp;ssl=1 1888w, https:\/\/i0.wp.com\/www.saastr.com\/wp-content\/uploads\/2025\/04\/Screenshot-2025-04-01-at-10.20.01%E2%80%AFAM.png?resize=600%2C343&amp;quality=70&amp;ssl=1 600w, https:\/\/i0.wp.com\/www.saastr.com\/wp-content\/uploads\/2025\/04\/Screenshot-2025-04-01-at-10.20.01%E2%80%AFAM.png?resize=768%2C439&amp;quality=70&amp;ssl=1 768w, https:\/\/i0.wp.com\/www.saastr.com\/wp-content\/uploads\/2025\/04\/Screenshot-2025-04-01-at-10.20.01%E2%80%AFAM.png?resize=1536%2C879&amp;quality=70&amp;ssl=1 1536w, https:\/\/i0.wp.com\/www.saastr.com\/wp-content\/uploads\/2025\/04\/Screenshot-2025-04-01-at-10.20.01%E2%80%AFAM.png?resize=1080%2C618&amp;quality=70&amp;ssl=1 1080w, https:\/\/i0.wp.com\/www.saastr.com\/wp-content\/uploads\/2025\/04\/Screenshot-2025-04-01-at-10.20.01%E2%80%AFAM.png?resize=1280%2C732&amp;quality=70&amp;ssl=1 1280w, https:\/\/i0.wp.com\/www.saastr.com\/wp-content\/uploads\/2025\/04\/Screenshot-2025-04-01-at-10.20.01%E2%80%AFAM.png?resize=980%2C561&amp;quality=70&amp;ssl=1 980w, https:\/\/i0.wp.com\/www.saastr.com\/wp-content\/uploads\/2025\/04\/Screenshot-2025-04-01-at-10.20.01%E2%80%AFAM.png?resize=480%2C275&amp;quality=70&amp;ssl=1 480w, https:\/\/i0.wp.com\/www.saastr.com\/wp-content\/uploads\/2025\/04\/Screenshot-2025-04-01-at-10.20.01%E2%80%AFAM.png?w=1000&amp;quality=70&amp;ssl=1 1000w\" data-sizes=\"(max-width: 1080px) 100vw, 1080px\" src=\"data:image\/gif;base64,R0lGODlhAQABAAAAACH5BAEKAAEALAAAAAABAAEAAAICTAEAOw==\" style=\"--smush-placeholder-width: 1080px; --smush-placeholder-aspect-ratio: 1080\/618;\" \/><noscript><img data-recalc-dims=\"1\" decoding=\"async\" class=\"aligncenter size-large wp-image-310892\" src=\"https:\/\/i0.wp.com\/www.saastr.com\/wp-content\/uploads\/2025\/04\/Screenshot-2025-04-01-at-10.20.01%E2%80%AFAM.png?resize=1080%2C618&#038;quality=70&#038;ssl=1\" alt=\"\" width=\"1080\" height=\"618\" srcset=\"https:\/\/i0.wp.com\/www.saastr.com\/wp-content\/uploads\/2025\/04\/Screenshot-2025-04-01-at-10.20.01%E2%80%AFAM.png?resize=1888%2C1080&amp;quality=70&amp;ssl=1 1888w, https:\/\/i0.wp.com\/www.saastr.com\/wp-content\/uploads\/2025\/04\/Screenshot-2025-04-01-at-10.20.01%E2%80%AFAM.png?resize=600%2C343&amp;quality=70&amp;ssl=1 600w, https:\/\/i0.wp.com\/www.saastr.com\/wp-content\/uploads\/2025\/04\/Screenshot-2025-04-01-at-10.20.01%E2%80%AFAM.png?resize=768%2C439&amp;quality=70&amp;ssl=1 768w, https:\/\/i0.wp.com\/www.saastr.com\/wp-content\/uploads\/2025\/04\/Screenshot-2025-04-01-at-10.20.01%E2%80%AFAM.png?resize=1536%2C879&amp;quality=70&amp;ssl=1 1536w, https:\/\/i0.wp.com\/www.saastr.com\/wp-content\/uploads\/2025\/04\/Screenshot-2025-04-01-at-10.20.01%E2%80%AFAM.png?resize=1080%2C618&amp;quality=70&amp;ssl=1 1080w, https:\/\/i0.wp.com\/www.saastr.com\/wp-content\/uploads\/2025\/04\/Screenshot-2025-04-01-at-10.20.01%E2%80%AFAM.png?resize=1280%2C732&amp;quality=70&amp;ssl=1 1280w, https:\/\/i0.wp.com\/www.saastr.com\/wp-content\/uploads\/2025\/04\/Screenshot-2025-04-01-at-10.20.01%E2%80%AFAM.png?resize=980%2C561&amp;quality=70&amp;ssl=1 980w, https:\/\/i0.wp.com\/www.saastr.com\/wp-content\/uploads\/2025\/04\/Screenshot-2025-04-01-at-10.20.01%E2%80%AFAM.png?resize=480%2C275&amp;quality=70&amp;ssl=1 480w, https:\/\/i0.wp.com\/www.saastr.com\/wp-content\/uploads\/2025\/04\/Screenshot-2025-04-01-at-10.20.01%E2%80%AFAM.png?w=1000&amp;quality=70&amp;ssl=1 1000w\" sizes=\"(max-width: 1080px) 100vw, 1080px\" \/><\/noscript><\/a><\/p>\n<h3>And a few other interesting learnings:<\/h3>\n<h3><strong>#6. 50% Attach Rates for AI In $30k+ Deals, But Much Lower for SMBs<\/strong><\/h3>\n<p>This is also what I&#8217;ve seen in the contact center. Deploying AI successfully does require work, and the demand is higher in the enterprise.<\/p>\n<p><a href=\"https:\/\/www.fool.com\/earnings\/call-transcripts\/2025\/02\/12\/freshworks-frsh-q4-2024-earnings-call-transcript\/\"><img data-recalc-dims=\"1\" decoding=\"async\" class=\"aligncenter size-full wp-image-310895 lazyload\" data-src=\"https:\/\/i0.wp.com\/www.saastr.com\/wp-content\/uploads\/2025\/04\/Screenshot-2025-04-01-at-10.24.49%E2%80%AFAM.png?resize=1000%2C184&#038;quality=70&#038;ssl=1\" alt=\"\" width=\"1000\" height=\"184\" data-srcset=\"https:\/\/i0.wp.com\/www.saastr.com\/wp-content\/uploads\/2025\/04\/Screenshot-2025-04-01-at-10.24.49%E2%80%AFAM.png?w=1000&amp;quality=70&amp;ssl=1 1000w, https:\/\/i0.wp.com\/www.saastr.com\/wp-content\/uploads\/2025\/04\/Screenshot-2025-04-01-at-10.24.49%E2%80%AFAM.png?resize=600%2C111&amp;quality=70&amp;ssl=1 600w, https:\/\/i0.wp.com\/www.saastr.com\/wp-content\/uploads\/2025\/04\/Screenshot-2025-04-01-at-10.24.49%E2%80%AFAM.png?resize=768%2C142&amp;quality=70&amp;ssl=1 768w, https:\/\/i0.wp.com\/www.saastr.com\/wp-content\/uploads\/2025\/04\/Screenshot-2025-04-01-at-10.24.49%E2%80%AFAM.png?resize=1536%2C283&amp;quality=70&amp;ssl=1 1536w, https:\/\/i0.wp.com\/www.saastr.com\/wp-content\/uploads\/2025\/04\/Screenshot-2025-04-01-at-10.24.49%E2%80%AFAM.png?resize=1080%2C199&amp;quality=70&amp;ssl=1 1080w, https:\/\/i0.wp.com\/www.saastr.com\/wp-content\/uploads\/2025\/04\/Screenshot-2025-04-01-at-10.24.49%E2%80%AFAM.png?resize=1280%2C236&amp;quality=70&amp;ssl=1 1280w, https:\/\/i0.wp.com\/www.saastr.com\/wp-content\/uploads\/2025\/04\/Screenshot-2025-04-01-at-10.24.49%E2%80%AFAM.png?resize=980%2C181&amp;quality=70&amp;ssl=1 980w, https:\/\/i0.wp.com\/www.saastr.com\/wp-content\/uploads\/2025\/04\/Screenshot-2025-04-01-at-10.24.49%E2%80%AFAM.png?resize=480%2C88&amp;quality=70&amp;ssl=1 480w\" data-sizes=\"(max-width: 1000px) 100vw, 1000px\" src=\"data:image\/gif;base64,R0lGODlhAQABAAAAACH5BAEKAAEALAAAAAABAAEAAAICTAEAOw==\" style=\"--smush-placeholder-width: 1000px; --smush-placeholder-aspect-ratio: 1000\/184;\" \/><noscript><img data-recalc-dims=\"1\" decoding=\"async\" class=\"aligncenter size-full wp-image-310895\" src=\"https:\/\/i0.wp.com\/www.saastr.com\/wp-content\/uploads\/2025\/04\/Screenshot-2025-04-01-at-10.24.49%E2%80%AFAM.png?resize=1000%2C184&#038;quality=70&#038;ssl=1\" alt=\"\" width=\"1000\" height=\"184\" srcset=\"https:\/\/i0.wp.com\/www.saastr.com\/wp-content\/uploads\/2025\/04\/Screenshot-2025-04-01-at-10.24.49%E2%80%AFAM.png?w=1000&amp;quality=70&amp;ssl=1 1000w, https:\/\/i0.wp.com\/www.saastr.com\/wp-content\/uploads\/2025\/04\/Screenshot-2025-04-01-at-10.24.49%E2%80%AFAM.png?resize=600%2C111&amp;quality=70&amp;ssl=1 600w, https:\/\/i0.wp.com\/www.saastr.com\/wp-content\/uploads\/2025\/04\/Screenshot-2025-04-01-at-10.24.49%E2%80%AFAM.png?resize=768%2C142&amp;quality=70&amp;ssl=1 768w, https:\/\/i0.wp.com\/www.saastr.com\/wp-content\/uploads\/2025\/04\/Screenshot-2025-04-01-at-10.24.49%E2%80%AFAM.png?resize=1536%2C283&amp;quality=70&amp;ssl=1 1536w, https:\/\/i0.wp.com\/www.saastr.com\/wp-content\/uploads\/2025\/04\/Screenshot-2025-04-01-at-10.24.49%E2%80%AFAM.png?resize=1080%2C199&amp;quality=70&amp;ssl=1 1080w, https:\/\/i0.wp.com\/www.saastr.com\/wp-content\/uploads\/2025\/04\/Screenshot-2025-04-01-at-10.24.49%E2%80%AFAM.png?resize=1280%2C236&amp;quality=70&amp;ssl=1 1280w, https:\/\/i0.wp.com\/www.saastr.com\/wp-content\/uploads\/2025\/04\/Screenshot-2025-04-01-at-10.24.49%E2%80%AFAM.png?resize=980%2C181&amp;quality=70&amp;ssl=1 980w, https:\/\/i0.wp.com\/www.saastr.com\/wp-content\/uploads\/2025\/04\/Screenshot-2025-04-01-at-10.24.49%E2%80%AFAM.png?resize=480%2C88&amp;quality=70&amp;ssl=1 480w\" sizes=\"(max-width: 1000px) 100vw, 1000px\" \/><\/noscript><\/a><\/p>\n<h3><strong>#7.\u00a0 The Oldest Business, CX (Support) is Only Growng 7%.\u00a0 A Reminder How Important Going Multi-Product Is.\u00a0 Their EX Product is Primary Driver of Growth, Growing 33%.<\/strong><\/h3>\n<p>If Freshworks had just stayed &#8220;Freshdesk&#8221;, it likely wouldn&#8217;t even be worth $1 Billion today.<\/p>\n<p><a href=\"https:\/\/www.fool.com\/earnings\/call-transcripts\/2025\/02\/12\/freshworks-frsh-q4-2024-earnings-call-transcript\/\"><img data-recalc-dims=\"1\" decoding=\"async\" class=\"aligncenter size-full wp-image-310899 lazyload\" data-src=\"https:\/\/i0.wp.com\/www.saastr.com\/wp-content\/uploads\/2025\/04\/Screenshot-2025-04-01-at-10.30.54%E2%80%AFAM.png?resize=1000%2C271&#038;quality=70&#038;ssl=1\" alt=\"\" width=\"1000\" height=\"271\" data-srcset=\"https:\/\/i0.wp.com\/www.saastr.com\/wp-content\/uploads\/2025\/04\/Screenshot-2025-04-01-at-10.30.54%E2%80%AFAM.png?w=1000&amp;quality=70&amp;ssl=1 1000w, https:\/\/i0.wp.com\/www.saastr.com\/wp-content\/uploads\/2025\/04\/Screenshot-2025-04-01-at-10.30.54%E2%80%AFAM.png?resize=600%2C163&amp;quality=70&amp;ssl=1 600w, https:\/\/i0.wp.com\/www.saastr.com\/wp-content\/uploads\/2025\/04\/Screenshot-2025-04-01-at-10.30.54%E2%80%AFAM.png?resize=768%2C208&amp;quality=70&amp;ssl=1 768w, https:\/\/i0.wp.com\/www.saastr.com\/wp-content\/uploads\/2025\/04\/Screenshot-2025-04-01-at-10.30.54%E2%80%AFAM.png?resize=1536%2C417&amp;quality=70&amp;ssl=1 1536w, https:\/\/i0.wp.com\/www.saastr.com\/wp-content\/uploads\/2025\/04\/Screenshot-2025-04-01-at-10.30.54%E2%80%AFAM.png?resize=1080%2C293&amp;quality=70&amp;ssl=1 1080w, https:\/\/i0.wp.com\/www.saastr.com\/wp-content\/uploads\/2025\/04\/Screenshot-2025-04-01-at-10.30.54%E2%80%AFAM.png?resize=1280%2C347&amp;quality=70&amp;ssl=1 1280w, https:\/\/i0.wp.com\/www.saastr.com\/wp-content\/uploads\/2025\/04\/Screenshot-2025-04-01-at-10.30.54%E2%80%AFAM.png?resize=980%2C266&amp;quality=70&amp;ssl=1 980w, https:\/\/i0.wp.com\/www.saastr.com\/wp-content\/uploads\/2025\/04\/Screenshot-2025-04-01-at-10.30.54%E2%80%AFAM.png?resize=480%2C130&amp;quality=70&amp;ssl=1 480w\" data-sizes=\"(max-width: 1000px) 100vw, 1000px\" src=\"data:image\/gif;base64,R0lGODlhAQABAAAAACH5BAEKAAEALAAAAAABAAEAAAICTAEAOw==\" style=\"--smush-placeholder-width: 1000px; --smush-placeholder-aspect-ratio: 1000\/271;\" \/><noscript><img data-recalc-dims=\"1\" decoding=\"async\" class=\"aligncenter size-full wp-image-310899\" src=\"https:\/\/i0.wp.com\/www.saastr.com\/wp-content\/uploads\/2025\/04\/Screenshot-2025-04-01-at-10.30.54%E2%80%AFAM.png?resize=1000%2C271&#038;quality=70&#038;ssl=1\" alt=\"\" width=\"1000\" height=\"271\" srcset=\"https:\/\/i0.wp.com\/www.saastr.com\/wp-content\/uploads\/2025\/04\/Screenshot-2025-04-01-at-10.30.54%E2%80%AFAM.png?w=1000&amp;quality=70&amp;ssl=1 1000w, https:\/\/i0.wp.com\/www.saastr.com\/wp-content\/uploads\/2025\/04\/Screenshot-2025-04-01-at-10.30.54%E2%80%AFAM.png?resize=600%2C163&amp;quality=70&amp;ssl=1 600w, https:\/\/i0.wp.com\/www.saastr.com\/wp-content\/uploads\/2025\/04\/Screenshot-2025-04-01-at-10.30.54%E2%80%AFAM.png?resize=768%2C208&amp;quality=70&amp;ssl=1 768w, https:\/\/i0.wp.com\/www.saastr.com\/wp-content\/uploads\/2025\/04\/Screenshot-2025-04-01-at-10.30.54%E2%80%AFAM.png?resize=1536%2C417&amp;quality=70&amp;ssl=1 1536w, https:\/\/i0.wp.com\/www.saastr.com\/wp-content\/uploads\/2025\/04\/Screenshot-2025-04-01-at-10.30.54%E2%80%AFAM.png?resize=1080%2C293&amp;quality=70&amp;ssl=1 1080w, https:\/\/i0.wp.com\/www.saastr.com\/wp-content\/uploads\/2025\/04\/Screenshot-2025-04-01-at-10.30.54%E2%80%AFAM.png?resize=1280%2C347&amp;quality=70&amp;ssl=1 1280w, https:\/\/i0.wp.com\/www.saastr.com\/wp-content\/uploads\/2025\/04\/Screenshot-2025-04-01-at-10.30.54%E2%80%AFAM.png?resize=980%2C266&amp;quality=70&amp;ssl=1 980w, https:\/\/i0.wp.com\/www.saastr.com\/wp-content\/uploads\/2025\/04\/Screenshot-2025-04-01-at-10.30.54%E2%80%AFAM.png?resize=480%2C130&amp;quality=70&amp;ssl=1 480w\" sizes=\"(max-width: 1000px) 100vw, 1000px\" \/><\/noscript><\/a><\/p>\n<h3><strong>#8.\u00a0 AI Leading to a 40%-50% Reduction in Average Ticket Handling Time, And Up to 40%-50% Deflection in Tickets Sent to Humans<\/strong><\/h3>\n<p>This is what I am seeing overall in the space, and a realistic assessment of AI in support and CX.\u00a0 It can handle a lot of routine issues, quickly.\u00a0 Beyond that, many are handing off to a human today.<\/p>\n<p><a href=\"https:\/\/www.fool.com\/earnings\/call-transcripts\/2025\/02\/12\/freshworks-frsh-q4-2024-earnings-call-transcript\/\"><img data-recalc-dims=\"1\" decoding=\"async\" class=\"aligncenter size-full wp-image-310898 lazyload\" data-src=\"https:\/\/i0.wp.com\/www.saastr.com\/wp-content\/uploads\/2025\/04\/Screenshot-2025-04-01-at-10.28.10%E2%80%AFAM.png?resize=1000%2C228&#038;quality=70&#038;ssl=1\" alt=\"\" width=\"1000\" height=\"228\" data-srcset=\"https:\/\/i0.wp.com\/www.saastr.com\/wp-content\/uploads\/2025\/04\/Screenshot-2025-04-01-at-10.28.10%E2%80%AFAM.png?w=1000&amp;quality=70&amp;ssl=1 1000w, https:\/\/i0.wp.com\/www.saastr.com\/wp-content\/uploads\/2025\/04\/Screenshot-2025-04-01-at-10.28.10%E2%80%AFAM.png?resize=600%2C137&amp;quality=70&amp;ssl=1 600w, https:\/\/i0.wp.com\/www.saastr.com\/wp-content\/uploads\/2025\/04\/Screenshot-2025-04-01-at-10.28.10%E2%80%AFAM.png?resize=768%2C175&amp;quality=70&amp;ssl=1 768w, https:\/\/i0.wp.com\/www.saastr.com\/wp-content\/uploads\/2025\/04\/Screenshot-2025-04-01-at-10.28.10%E2%80%AFAM.png?resize=1536%2C350&amp;quality=70&amp;ssl=1 1536w, https:\/\/i0.wp.com\/www.saastr.com\/wp-content\/uploads\/2025\/04\/Screenshot-2025-04-01-at-10.28.10%E2%80%AFAM.png?resize=1080%2C246&amp;quality=70&amp;ssl=1 1080w, https:\/\/i0.wp.com\/www.saastr.com\/wp-content\/uploads\/2025\/04\/Screenshot-2025-04-01-at-10.28.10%E2%80%AFAM.png?resize=1280%2C292&amp;quality=70&amp;ssl=1 1280w, https:\/\/i0.wp.com\/www.saastr.com\/wp-content\/uploads\/2025\/04\/Screenshot-2025-04-01-at-10.28.10%E2%80%AFAM.png?resize=980%2C223&amp;quality=70&amp;ssl=1 980w, https:\/\/i0.wp.com\/www.saastr.com\/wp-content\/uploads\/2025\/04\/Screenshot-2025-04-01-at-10.28.10%E2%80%AFAM.png?resize=480%2C109&amp;quality=70&amp;ssl=1 480w\" data-sizes=\"(max-width: 1000px) 100vw, 1000px\" src=\"data:image\/gif;base64,R0lGODlhAQABAAAAACH5BAEKAAEALAAAAAABAAEAAAICTAEAOw==\" style=\"--smush-placeholder-width: 1000px; --smush-placeholder-aspect-ratio: 1000\/228;\" \/><noscript><img data-recalc-dims=\"1\" decoding=\"async\" class=\"aligncenter size-full wp-image-310898\" src=\"https:\/\/i0.wp.com\/www.saastr.com\/wp-content\/uploads\/2025\/04\/Screenshot-2025-04-01-at-10.28.10%E2%80%AFAM.png?resize=1000%2C228&#038;quality=70&#038;ssl=1\" alt=\"\" width=\"1000\" height=\"228\" srcset=\"https:\/\/i0.wp.com\/www.saastr.com\/wp-content\/uploads\/2025\/04\/Screenshot-2025-04-01-at-10.28.10%E2%80%AFAM.png?w=1000&amp;quality=70&amp;ssl=1 1000w, https:\/\/i0.wp.com\/www.saastr.com\/wp-content\/uploads\/2025\/04\/Screenshot-2025-04-01-at-10.28.10%E2%80%AFAM.png?resize=600%2C137&amp;quality=70&amp;ssl=1 600w, https:\/\/i0.wp.com\/www.saastr.com\/wp-content\/uploads\/2025\/04\/Screenshot-2025-04-01-at-10.28.10%E2%80%AFAM.png?resize=768%2C175&amp;quality=70&amp;ssl=1 768w, https:\/\/i0.wp.com\/www.saastr.com\/wp-content\/uploads\/2025\/04\/Screenshot-2025-04-01-at-10.28.10%E2%80%AFAM.png?resize=1536%2C350&amp;quality=70&amp;ssl=1 1536w, https:\/\/i0.wp.com\/www.saastr.com\/wp-content\/uploads\/2025\/04\/Screenshot-2025-04-01-at-10.28.10%E2%80%AFAM.png?resize=1080%2C246&amp;quality=70&amp;ssl=1 1080w, https:\/\/i0.wp.com\/www.saastr.com\/wp-content\/uploads\/2025\/04\/Screenshot-2025-04-01-at-10.28.10%E2%80%AFAM.png?resize=1280%2C292&amp;quality=70&amp;ssl=1 1280w, https:\/\/i0.wp.com\/www.saastr.com\/wp-content\/uploads\/2025\/04\/Screenshot-2025-04-01-at-10.28.10%E2%80%AFAM.png?resize=980%2C223&amp;quality=70&amp;ssl=1 980w, https:\/\/i0.wp.com\/www.saastr.com\/wp-content\/uploads\/2025\/04\/Screenshot-2025-04-01-at-10.28.10%E2%80%AFAM.png?resize=480%2C109&amp;quality=70&amp;ssl=1 480w\" sizes=\"(max-width: 1000px) 100vw, 1000px\" \/><\/noscript><\/a><\/p>\n<h3><strong>#9.\u00a0 A Cash Generating Engine Today, Expects to Generate $200m+ in Free Cash Flow This Year<\/strong><\/h3>\n<p>Freshworks has gotten lean, but even as it has done so, it has modestly re-accelerated growth in both revenue and net new customers.<\/p>\n<p><a href=\"https:\/\/www.fool.com\/earnings\/call-transcripts\/2025\/02\/12\/freshworks-frsh-q4-2024-earnings-call-transcript\/\"><img data-recalc-dims=\"1\" decoding=\"async\" class=\"aligncenter size-full wp-image-310900 lazyload\" data-src=\"https:\/\/i0.wp.com\/www.saastr.com\/wp-content\/uploads\/2025\/04\/Screenshot-2025-04-01-at-10.32.47%E2%80%AFAM.png?resize=1000%2C251&#038;quality=70&#038;ssl=1\" alt=\"\" width=\"1000\" height=\"251\" data-srcset=\"https:\/\/i0.wp.com\/www.saastr.com\/wp-content\/uploads\/2025\/04\/Screenshot-2025-04-01-at-10.32.47%E2%80%AFAM.png?w=1000&amp;quality=70&amp;ssl=1 1000w, https:\/\/i0.wp.com\/www.saastr.com\/wp-content\/uploads\/2025\/04\/Screenshot-2025-04-01-at-10.32.47%E2%80%AFAM.png?resize=600%2C151&amp;quality=70&amp;ssl=1 600w, https:\/\/i0.wp.com\/www.saastr.com\/wp-content\/uploads\/2025\/04\/Screenshot-2025-04-01-at-10.32.47%E2%80%AFAM.png?resize=768%2C193&amp;quality=70&amp;ssl=1 768w, https:\/\/i0.wp.com\/www.saastr.com\/wp-content\/uploads\/2025\/04\/Screenshot-2025-04-01-at-10.32.47%E2%80%AFAM.png?resize=1536%2C386&amp;quality=70&amp;ssl=1 1536w, https:\/\/i0.wp.com\/www.saastr.com\/wp-content\/uploads\/2025\/04\/Screenshot-2025-04-01-at-10.32.47%E2%80%AFAM.png?resize=1080%2C272&amp;quality=70&amp;ssl=1 1080w, https:\/\/i0.wp.com\/www.saastr.com\/wp-content\/uploads\/2025\/04\/Screenshot-2025-04-01-at-10.32.47%E2%80%AFAM.png?resize=1280%2C322&amp;quality=70&amp;ssl=1 1280w, https:\/\/i0.wp.com\/www.saastr.com\/wp-content\/uploads\/2025\/04\/Screenshot-2025-04-01-at-10.32.47%E2%80%AFAM.png?resize=980%2C246&amp;quality=70&amp;ssl=1 980w, https:\/\/i0.wp.com\/www.saastr.com\/wp-content\/uploads\/2025\/04\/Screenshot-2025-04-01-at-10.32.47%E2%80%AFAM.png?resize=480%2C121&amp;quality=70&amp;ssl=1 480w\" data-sizes=\"(max-width: 1000px) 100vw, 1000px\" src=\"data:image\/gif;base64,R0lGODlhAQABAAAAACH5BAEKAAEALAAAAAABAAEAAAICTAEAOw==\" style=\"--smush-placeholder-width: 1000px; --smush-placeholder-aspect-ratio: 1000\/251;\" \/><noscript><img data-recalc-dims=\"1\" decoding=\"async\" class=\"aligncenter size-full wp-image-310900\" src=\"https:\/\/i0.wp.com\/www.saastr.com\/wp-content\/uploads\/2025\/04\/Screenshot-2025-04-01-at-10.32.47%E2%80%AFAM.png?resize=1000%2C251&#038;quality=70&#038;ssl=1\" alt=\"\" width=\"1000\" height=\"251\" srcset=\"https:\/\/i0.wp.com\/www.saastr.com\/wp-content\/uploads\/2025\/04\/Screenshot-2025-04-01-at-10.32.47%E2%80%AFAM.png?w=1000&amp;quality=70&amp;ssl=1 1000w, https:\/\/i0.wp.com\/www.saastr.com\/wp-content\/uploads\/2025\/04\/Screenshot-2025-04-01-at-10.32.47%E2%80%AFAM.png?resize=600%2C151&amp;quality=70&amp;ssl=1 600w, https:\/\/i0.wp.com\/www.saastr.com\/wp-content\/uploads\/2025\/04\/Screenshot-2025-04-01-at-10.32.47%E2%80%AFAM.png?resize=768%2C193&amp;quality=70&amp;ssl=1 768w, https:\/\/i0.wp.com\/www.saastr.com\/wp-content\/uploads\/2025\/04\/Screenshot-2025-04-01-at-10.32.47%E2%80%AFAM.png?resize=1536%2C386&amp;quality=70&amp;ssl=1 1536w, https:\/\/i0.wp.com\/www.saastr.com\/wp-content\/uploads\/2025\/04\/Screenshot-2025-04-01-at-10.32.47%E2%80%AFAM.png?resize=1080%2C272&amp;quality=70&amp;ssl=1 1080w, https:\/\/i0.wp.com\/www.saastr.com\/wp-content\/uploads\/2025\/04\/Screenshot-2025-04-01-at-10.32.47%E2%80%AFAM.png?resize=1280%2C322&amp;quality=70&amp;ssl=1 1280w, https:\/\/i0.wp.com\/www.saastr.com\/wp-content\/uploads\/2025\/04\/Screenshot-2025-04-01-at-10.32.47%E2%80%AFAM.png?resize=980%2C246&amp;quality=70&amp;ssl=1 980w, https:\/\/i0.wp.com\/www.saastr.com\/wp-content\/uploads\/2025\/04\/Screenshot-2025-04-01-at-10.32.47%E2%80%AFAM.png?resize=480%2C121&amp;quality=70&amp;ssl=1 480w\" sizes=\"(max-width: 1000px) 100vw, 1000px\" \/><\/noscript><\/a><\/p>\n<h3><strong>#10.\u00a0 Using Their Free Cash Flow Partially to Offset Dilution From Equity Grants.\u00a0 Less Than 1% Net Dilution After Repurchases.<\/strong><\/h3>\n<p>When B2B companies burn cash and issue a lot of equity, the dilution can be fierce.\u00a0 But as you scale and get profitable, you can use your cash to buy back shares roughly equal to those you issue to new hires.\u00a0 That&#8217;s where Freshworks is today.\u00a0 Net dilution is less than 1%<\/p>\n<p><a href=\"https:\/\/www.fool.com\/earnings\/call-transcripts\/2025\/02\/12\/freshworks-frsh-q4-2024-earnings-call-transcript\/\"><img data-recalc-dims=\"1\" decoding=\"async\" class=\"aligncenter size-full wp-image-310901 lazyload\" data-src=\"https:\/\/i0.wp.com\/www.saastr.com\/wp-content\/uploads\/2025\/04\/Screenshot-2025-04-01-at-10.33.59%E2%80%AFAM.png?resize=1000%2C189&#038;quality=70&#038;ssl=1\" alt=\"\" width=\"1000\" height=\"189\" data-srcset=\"https:\/\/i0.wp.com\/www.saastr.com\/wp-content\/uploads\/2025\/04\/Screenshot-2025-04-01-at-10.33.59%E2%80%AFAM.png?w=1000&amp;quality=70&amp;ssl=1 1000w, https:\/\/i0.wp.com\/www.saastr.com\/wp-content\/uploads\/2025\/04\/Screenshot-2025-04-01-at-10.33.59%E2%80%AFAM.png?resize=600%2C113&amp;quality=70&amp;ssl=1 600w, https:\/\/i0.wp.com\/www.saastr.com\/wp-content\/uploads\/2025\/04\/Screenshot-2025-04-01-at-10.33.59%E2%80%AFAM.png?resize=768%2C145&amp;quality=70&amp;ssl=1 768w, https:\/\/i0.wp.com\/www.saastr.com\/wp-content\/uploads\/2025\/04\/Screenshot-2025-04-01-at-10.33.59%E2%80%AFAM.png?resize=1536%2C291&amp;quality=70&amp;ssl=1 1536w, https:\/\/i0.wp.com\/www.saastr.com\/wp-content\/uploads\/2025\/04\/Screenshot-2025-04-01-at-10.33.59%E2%80%AFAM.png?resize=1080%2C204&amp;quality=70&amp;ssl=1 1080w, https:\/\/i0.wp.com\/www.saastr.com\/wp-content\/uploads\/2025\/04\/Screenshot-2025-04-01-at-10.33.59%E2%80%AFAM.png?resize=1280%2C242&amp;quality=70&amp;ssl=1 1280w, https:\/\/i0.wp.com\/www.saastr.com\/wp-content\/uploads\/2025\/04\/Screenshot-2025-04-01-at-10.33.59%E2%80%AFAM.png?resize=980%2C185&amp;quality=70&amp;ssl=1 980w, https:\/\/i0.wp.com\/www.saastr.com\/wp-content\/uploads\/2025\/04\/Screenshot-2025-04-01-at-10.33.59%E2%80%AFAM.png?resize=480%2C91&amp;quality=70&amp;ssl=1 480w\" data-sizes=\"(max-width: 1000px) 100vw, 1000px\" src=\"data:image\/gif;base64,R0lGODlhAQABAAAAACH5BAEKAAEALAAAAAABAAEAAAICTAEAOw==\" style=\"--smush-placeholder-width: 1000px; --smush-placeholder-aspect-ratio: 1000\/189;\" \/><noscript><img data-recalc-dims=\"1\" decoding=\"async\" class=\"aligncenter size-full wp-image-310901\" src=\"https:\/\/i0.wp.com\/www.saastr.com\/wp-content\/uploads\/2025\/04\/Screenshot-2025-04-01-at-10.33.59%E2%80%AFAM.png?resize=1000%2C189&#038;quality=70&#038;ssl=1\" alt=\"\" width=\"1000\" height=\"189\" srcset=\"https:\/\/i0.wp.com\/www.saastr.com\/wp-content\/uploads\/2025\/04\/Screenshot-2025-04-01-at-10.33.59%E2%80%AFAM.png?w=1000&amp;quality=70&amp;ssl=1 1000w, https:\/\/i0.wp.com\/www.saastr.com\/wp-content\/uploads\/2025\/04\/Screenshot-2025-04-01-at-10.33.59%E2%80%AFAM.png?resize=600%2C113&amp;quality=70&amp;ssl=1 600w, https:\/\/i0.wp.com\/www.saastr.com\/wp-content\/uploads\/2025\/04\/Screenshot-2025-04-01-at-10.33.59%E2%80%AFAM.png?resize=768%2C145&amp;quality=70&amp;ssl=1 768w, https:\/\/i0.wp.com\/www.saastr.com\/wp-content\/uploads\/2025\/04\/Screenshot-2025-04-01-at-10.33.59%E2%80%AFAM.png?resize=1536%2C291&amp;quality=70&amp;ssl=1 1536w, https:\/\/i0.wp.com\/www.saastr.com\/wp-content\/uploads\/2025\/04\/Screenshot-2025-04-01-at-10.33.59%E2%80%AFAM.png?resize=1080%2C204&amp;quality=70&amp;ssl=1 1080w, https:\/\/i0.wp.com\/www.saastr.com\/wp-content\/uploads\/2025\/04\/Screenshot-2025-04-01-at-10.33.59%E2%80%AFAM.png?resize=1280%2C242&amp;quality=70&amp;ssl=1 1280w, https:\/\/i0.wp.com\/www.saastr.com\/wp-content\/uploads\/2025\/04\/Screenshot-2025-04-01-at-10.33.59%E2%80%AFAM.png?resize=980%2C185&amp;quality=70&amp;ssl=1 980w, https:\/\/i0.wp.com\/www.saastr.com\/wp-content\/uploads\/2025\/04\/Screenshot-2025-04-01-at-10.33.59%E2%80%AFAM.png?resize=480%2C91&amp;quality=70&amp;ssl=1 480w\" sizes=\"(max-width: 1000px) 100vw, 1000px\" \/><\/noscript><\/a><\/p>\n<p>&nbsp;<\/p>\n<h3>And a great deep dive with founder Girish Mathrubootham here:<\/h3>\n<p><iframe title=\"Building a Global SaaS Empire | Freshworks Founder &amp; CEO Girish Mathrubootham on His Biggest Bets\" width=\"1080\" height=\"608\" data-src=\"https:\/\/www.youtube.com\/embed\/0Rf9CE_QjtE?feature=oembed&#038;enablejsapi=1&#038;origin=https:\/\/www.saastr.com\"  allow=\"accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture; web-share\" referrerpolicy=\"strict-origin-when-cross-origin\" allowfullscreen src=\"data:image\/gif;base64,R0lGODlhAQABAAAAACH5BAEKAAEALAAAAAABAAEAAAICTAEAOw==\" class=\"lazyload\" data-load-mode=\"1\"><\/iframe><\/p>\n<p>&nbsp;<\/p>\n","protected":false},"excerpt":{"rendered":"<p>So Freshworks started off as a low-end Zendesk competitor (Freshdesk), but relatively early expanded into a broader suite of related products for service and support, and most of its growth today is fueled by its lower-end competitor to ServiceNow, it&#8217;s &#8220;EX&#8221; products.\u00a0 As you can see below, it went aggressively multiproduct by Year 4: The&#8230; <br \/><a class=\"more-link fade\" href=\"https:\/\/www.saastr.com\/5-interesting-learnings-from-freshworks-at-800000000-in-arr\/\">Continue Reading<\/a><\/p>\n","protected":false},"author":19,"featured_media":310887,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_et_pb_use_builder":"","_et_pb_old_content":"","_et_gb_content_width":"","om_disable_all_campaigns":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":false,"jetpack_social_options":{"image_generator_settings":{"template":"highway","default_image_id":0,"font":"","enabled":false},"version":2},"_wpscp_schedule_draft_date":"","_wpscp_schedule_republish_date":"","_wpscppro_advance_schedule":false,"_wpscppro_advance_schedule_date":"","_wpscppro_custom_social_share_image":0,"_facebook_share_type":"","_twitter_share_type":"","_linkedin_share_type":"","_pinterest_share_type":"","_linkedin_share_type_page":"","_instagram_share_type":"","_medium_share_type":"","_threads_share_type":"","_selected_social_profile":[]},"categories":[23926,31,28],"tags":[],"class_list":["post-310886","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-5-interesting-things","category-blog-posts","category-scale"],"jetpack_publicize_connections":[],"jetpack_featured_media_url":"https:\/\/i0.wp.com\/www.saastr.com\/wp-content\/uploads\/2025\/04\/fw.webp?fit=980%2C553&quality=65&ssl=1","jetpack_shortlink":"https:\/\/wp.me\/p5oib2-1iSi","jetpack_sharing_enabled":true,"fifu_image_url":"https:\/\/www.saastr.com\/wp-content\/uploads\/2025\/04\/fw.webp","_links":{"self":[{"href":"https:\/\/www.saastr.com\/wp-json\/wp\/v2\/posts\/310886","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.saastr.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.saastr.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.saastr.com\/wp-json\/wp\/v2\/users\/19"}],"replies":[{"embeddable":true,"href":"https:\/\/www.saastr.com\/wp-json\/wp\/v2\/comments?post=310886"}],"version-history":[{"count":6,"href":"https:\/\/www.saastr.com\/wp-json\/wp\/v2\/posts\/310886\/revisions"}],"predecessor-version":[{"id":310981,"href":"https:\/\/www.saastr.com\/wp-json\/wp\/v2\/posts\/310886\/revisions\/310981"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.saastr.com\/wp-json\/wp\/v2\/media\/310887"}],"wp:attachment":[{"href":"https:\/\/www.saastr.com\/wp-json\/wp\/v2\/media?parent=310886"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.saastr.com\/wp-json\/wp\/v2\/categories?post=310886"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.saastr.com\/wp-json\/wp\/v2\/tags?post=310886"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}