Freshworks Boosts Momentum with its AI-Powered Customer Engagement Platform

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Freshworks Inc., a leading enterprise customer relationship management (CRM) software-as-a-service (SaaS) provider listed on NASDAQ under the ticker FRSH, has recently incorporated artificial intelligence (AI) into its suite of products, signaling a significant enhancement in its capabilities. With a vast clientele of over 60,000 businesses, including prominent names like Blue Nile, Klarna, Travix, and BEL USA, Freshworks stands out in the competitive Business Services sector, contending with industry giants like Salesforce, Zendesk, and HubSpot.

In the latest quarter, Freshworks has notably fortified its AI capabilities, integrating generative AI into its Customer Service Suite. This suite comprises Freshdesk for customer engagement, Freshchat for AI-powered chatbots, Freshbots (AI-powered by Freddy Self-Service), Freshsales, and Freshmarketer for AI-powered sales and marketing automation. These tools aim to enhance customer experience (CX) and agent productivity through AI-powered assistants and automation.

The introduction of Freddy Copilot, an AI-powered always-on assistant, is a notable addition, enabling agents to access and manage customer interactions seamlessly across channels. The platform’s unified approach empowers agents to personalize services in real-time, with AI providing event summaries, suggesting responses, and recommending actions.

Freshworks reported robust fiscal third-quarter results for 2023, ending September 2023, surpassing analyst expectations. The company posted an earnings-per-share (EPS) profit of 8 cents, beating estimates by 3 cents. Revenues witnessed a year-over-year growth of 19.3% to $153.6 million, outperforming analyst estimates. The company’s subscription services also saw a significant increase, reaching $150 million.

Looking ahead, Freshworks provided guidance for Q4 2023, anticipating an EPS of 4 cents to 6 cents and revenues between $156.7 million to $159.3 million. The company remains optimistic about industry tailwinds, such as digital transformation, modern messaging, and AI breaking down silos.

CEO Girish Mathrubootham highlighted the company’s success in gaining traction with the AI-embedded product, citing the example of Fastway Couriers in South Africa. The company transitioned from a disjointed customer service provider to Freshworks, resulting in improved issue resolution through live and AI-powered automated chats.

The CEO emphasized the focus on AI-powered customer service, IT, and sales and marketing products, aiming to unlock productivity for customers. As Freshworks continues to innovate and offer richer insights, the company looks poised for further growth in the competitive CRM software-as-a-service landscape.

In terms of stock analysis, the daily candlestick chart for FRSH reveals a cup and handle attempt, indicating a potential bullish pattern. The stock experienced a pullback after attempting to break out, forming a handle. Key support levels include $19.72, $18.66, $17.49 (daily market structure low trigger), and $16.86. The company’s positive financial performance and strategic focus on AI-driven solutions contribute to its favorable position in the market.