8 months ago

Freshworks AI Revenue Grows, Expands with FireHydrant Acquisition

Freshworks AI Revenue Grows, Expands with FireHydrant Acquisition
Freshworks AI revenue is growing and is as large as that of an AI start-up, says CEO Dennis Woodside · thehindubusinessline.com

Freshworks, a company that makes software for businesses, is doing really well with its AI features.

They have 75,000 customers in total, and 6,000 of them are paying for AI tools.

These tools help businesses with things like customer service and managing IT problems.

Freshworks recently bought another company called FireHydrant to help IT teams work better together.

The CEO, Dennis Woodside, says that AI is also helping Freshworks write code faster and improve their products.

They make money from AI in different ways, like charging per use or adding it to higher-priced plans.

The company is excited about the future and thinks AI will make their software even more valuable.

Key facts

AI Customers
6,000
Total Customers
75,000
AI Annual Recurring Revenue
$20 million
Code Written by AI
40%
Acquired Company
FireHydrant
Freshservice Customers
20,000
AI Products
AI agents, Copilot, AI Insights
Pricing Models
Per session, per seat, bundled

Quotes

Dennis Woodside

CEO and President of Freshworks

“Our pricing varies depending on what product you’re buying. If you’re buying our AI agent - the product that answers employee or customer questions directly - you pay on a per session basis, and a session is an interaction through chat or through a portal over 24 hours between an employee or a customer and the software. For Copilot, we charge an additional price per seat for the agent themselves. And then some of our products like AI Insights, which is for managers, we just bundle into the higher price plan. We have different ways of monetising and we’re excited about how all of them work together to deliver value for the customers.”
thehindubusinessline.com
“Out of our 75,000 total customers across Customer Experience and Employee Experience, 6,000 customers are paying us for AI. We added over a thousand new customers in Q3 alone, and the ARR from our AI products is well over $20 million today. We have introduced AI agents for specific industries like e-commerce, travel, retail, and logistics. Copilot is another product that is very popular especially among the larger clients. That said, a lot of the effort here in Chennai, Bengaluru, and in the US amongst our sales teams is to educate our existing customers on AI capabilities that we have, and get them comfortable with moving to AI.”
thehindubusinessline.com

Sources

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