Freshworks has increased its 2025 revenue forecast due to strong demand for its AI-driven software. The company now projects revenue between $815.3 million and $824.3 million, surpassing analyst predictions. This revision follows upbeat quarterly results, with first-quarter revenue rising 19% to $196.3 million and adjusted earnings per share reaching 18 cents, both exceeding expectations.

The rising adoption of AI-powered software for IT services and workflow automation is benefiting Freshworks, as more businesses digitize their operations. Freshworks now anticipates full-year 2025 revenue to be in the range of $815.3 million to $824.3 million, an increase from the previous forecast of $809 million to $821 million. Analysts, on average, had projected annual revenue of $813.3 million.

In addition to revenue, Freshworks has also raised its annual adjusted profit per share forecast to a range of 56 cents to 58 cents, with the midpoint exceeding estimates of 53 cents. The company, which serves over 72,000 clients, including American Express, Databricks, Nucor, and Sony, provides products that automate routine tasks, assist with employee onboarding and management, and offer tailored solutions for customer issues.

For the second quarter of 2025, Freshworks expects revenue to be between $197.3 million and $200.3 million, aligning with estimates. The company also projects an adjusted profit per share in the range of 10 cents to 12 cents for the second quarter, compared to estimates of 11 cents. The first-quarter results, ending March 31, showed a revenue increase of 19% to $196.3 million, surpassing estimates of $191.9 million, and an adjusted profit per share of 18 cents, exceeding estimates of 13 cents.