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Freshworks CFO says AI and less software complexity can drive growth
The company expects $265 million in free cash flow this year while targeting $1.4 billion in annual recurring revenue.
Freshworks CFO Tyler Sloat said the company is positioning its employee experience portfolio around enterprise-grade software designed to avoid the complexity that often comes with larger platforms, aiming to make products easier to deploy and manage while still delivering enterprise capabilities.
According to remarks during a Freshworks webinar, Sloat said AI features such as Freddy Copilot and AI Agent Studio are becoming central to product evaluations and customer adoption, alongside an expansion beyond IT ticketing into enterprise service management, IT asset management, and IT operations.
Freshworks is also folding in acquisitions including Device42 and FireHydrant into a unified platform, while targeting more selective acquisitions and buybacks, the company said, with plans to reach $1.4 billion in annual recurring revenue and $1.3 billion in revenue over the long term.
The CFO cited Freshworks financial positioning of $664 million in net cash, no meaningful debt, and an expected $265 million in free cash flow this year, and said human resources is currently the largest use case for its enterprise service management offering.