Showing signs of strong resilience in the information technology and software sector, SaaS major Freshworks announced that the software company posted a consolidated revenue of 128.8 million dollars during the third quarter. The consolidated revenue posted by the IT major was nearly 37 percent more than what it earned as revenue during the third quarter of the previous financial year.
Reports suggest that improvements in operational efficiency and an increase in the number of total customers were major factors for posting higher revenue during the third quarter.
The operational loss came down to 58.3 million dollars from 67.4 million dollars in the second quarter. Freshworks posted a net loss of 57.8 million dollars in the quarter. During the third quarter of the previous financial year, the net loss was standing at a whopping 107.4 million dollars.
Efficient cost-cutting measures implemented by the top management of Freshworks are showing their effects on decreasing operational and net loss posted by the company.
On a quarter-to-quarter basis, the revenue of Freshworks only grew by a meager 5 percent showing the impact of high inflation and economic slowdown on the information technology and software sector.
Chief Financial Officer of Freshworks, Tyler Sloat said that macroeconomic pressure from both domestic and international economies resulted in slower expansion activity during the third quarter. Tyler added that the company was able to retain customers in small and medium business enterprises while adding new customers into the fold.
Girish Mathrubootham who is the Chief Executive Officer of the company said that despite posting higher revenue and decreasing costs in the third quarter, the company was not immune to a slowdown in the American economy. Even though there was an increase in the number of customers and businesses, Freshworks was not able to expand its business activities due to various economic factors.
Mr. Mathrubootham also said that the company was witnessing increases in markets in North America despite the slowdown in growth.
In the fourth quarter, the company is expecting to post overall revenue somewhere between 129 and 131 million dollars. The firm also expects to record an operating loss of $8.5 million – $10.5 million for the fourth quarter.
Various IT companies in and out of the USA have been facing immense financial crises in the past few months as increasing inflation and increased interest rates are hampering the growth prospects. High volatility in the value of currencies is also causing financial issues for multinational conglomerate businesses.