Freshworks Inc.

Thank you for standing by and welcome to the Freshworks Inc's fourth quarter and full year 2021 earnings conference call. At this time, all participants are in listen-only mode. After the speaker's presentation, there will be a question and answer session. To ask a question during this session, you'll need to press star 1 on your telephone. As a reminder, today's program may be recorded. I would now like to introduce your host for today's program, June Ha, Vice President, Investor Relations. Please go ahead.

thank you jonathan good afternoon and welcome to freshworks fourth quarter and full year 2021 earnings conference call joining me today are girish matrabutham freshworks chief executive officer and tyler sloat freshworks chief financial officer the primary purpose of today's call is to provide you with information regarding our fourth quarter and full year 2021 performance and our financial outlook for our first quarter and full year 2022. some of our discussion and responses to your questions may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements are based on Freshworks' current expectations and estimates about its business and industry, management's belief, and certain assumptions made about the company as of the date hereof, all of which are subject to change. These statements are subject to risks, uncertainties, and assumptions that could cause actual results to differ materially from those projected in the forward-looking statements. For discussion of material risks and other important factors that could affect our results, please refer to today's earnings release, our most recently filed form 10Q, and other periodic filings with the SEC. Freshworks assumes no obligation to update any forward-looking statements in order to reflect events or circumstances that may arise after the date of this presentation, except as required by law. During the course of today's call, we'll refer to certain non-GAAP financial measures, Reconciliations between GAAP and non-GAAP financial measures are included in our earnings release, which is available on our investor relations website at ir.freshworks.com. I encourage you to visit our investor relations site to access our earnings release, periodic SEC reports, a replay of today's call, or to learn more about Freshworks. And with that, let me turn it over to Girish.

Thanks, Jun. And hello, everyone. Thank you for joining us today as we review the fourth quarter and full year 2021 highlights for Freshworks and our priorities and guidance for this year. Q4 was another strong quarter where revenue grew 44% to $105.5 million. This is also our first $100 million revenue quarter as a company. So we had robust renewal activity in Q4. and our new business activity is seeing positive momentum with our field sales teams closing a number of sizable mid-market deals. We also had another good expansion quarter in Q4. It is encouraging to see that companies of all sizes are demanding Freshworks easy-to-use modern products that are designed with the user in mind. We accomplished a lot in 2021. We became a publicly traded company in September and ended the year with over 56,000 customers. We received industry validation from Gartner. Our flagship product FreshDesk was recognized as a visionary in the 2021 Gartner Magic Quadrant for CRM Customer Engagement Center and FreshService was recognized as a challenger in the ITSM Magic Quadrant. More recently, Fresh Service was also recognized as a strong performer in the Forrester wave for enterprise service management. Last year, we also strengthened our board with three new independent directors and expanded our leadership team with proven public company experience. On the people front, I'm incredibly proud of our employees for their focus and dedication as we continue to innovate, put customers first, and execute as a public company. Overall, 2021 was a great year for Freshworks. Now turning to the GTM highlights. In Q4, our field sales engine performed well, driving new logo acquisition and new revenue. Our inbound motion continues to be an efficient, high-velocity go-to-market engine catering to SMB and mid-market customers. We also saw positive momentum on multi-product adoption. As of Q4, 21% of our customers use more than one Freshworks product. In the cohort of customers paying more than $5,000 in annual recurring revenue, the multi-product adoption is even higher at 35%. A good example of multi-product usage is our customer 7-11. Their customer support team had to deal with a wide variety of incoming requests from multiple channels. By switching to fresh desk, support desk, and contact center products, 7-11 support agents saw significant productivity benefits from a modern tool, and managers were able to improve key support metrics with better insights. We are encouraged to learn that 7-11 team is planning to expand their Freshworks product usage even further. Smaller organizations also see the value of working with multiple Freshworks products. The Southeast Alaska Regional Health Consortium, a nonprofit group serving the health interests of the native people of Southeast Alaska, is using both fresh service and freshness messaging products to manage their IT help desk in rural locations across thousands of miles. Now, they can more easily onboard new users, improving efficiency and record keeping. These multi-product trends have naturally led to higher revenue per account, and contributed to improvements in churn for us. In November, we held Refresh, our annual user conference. We had over 18,000 online registrants. We had several mid-market customers showcase their unique product use cases live from Las Vegas. We also held our inaugural Champions of Delight Awards, recognizing customers who delivered innovative and delightful employee and customer experiences using our products. At Refresh, we also introduce new product capabilities in IT operations management within FreshService. One of our customers, PowerSchool, is a leading provider of K-12 education technology in North America, serving over a thousand schools and supporting millions of students. They are using our new ITOM capabilities in FreshService to increase their deployment frequency for the 40 plus products that they support and have reduced the rate of IT issues by over five times. This allows them to minimize downtime and enable children to keep learning. Overall, we had a strong fourth quarter and a good finish to 2021. Now looking ahead to 2022, Freshworks has a big opportunity to grow in our target markets. Today, every consumer facing business is exploring new and better ways to engage with customers across digital and social channels like WhatsApp, text messaging, or Instagram. For 2022, we are prioritizing customer experience and CRM product enhancements around these changing market trends. Leading consumer brands like Discover, Klarna, Delivery Hero, and Paytm already use our messaging product to engage with their customers and automate support over digital channels. We will be increasing our product efforts to drive conversational agent experiences and increase coverage of digital channels, and also offer self-service bots across various new channels. So we'll also continue investing in core help desk capabilities and strengthen our support desk product. Our second priority is our expansion beyond the ITSM market. Businesses are rapidly moving their technology applications to their cloud, and we frequently hear teams complaining about alarm fatigue, the overwhelming number of tools they have to use, and the manual activities leading to delays in identifying and fixing issues. Based on validation from our early customers, we plan to increase our efforts in offering an integrated IT operations management solution that enables IT and engineering teams to anticipate service disruption, prevent outages, and minimize customer impact. These innovations to our fresh service product will help us further address the $34 billion IT operations management market opportunity. We plan to continue investing in our new platform, which provides shared services and enables rapid product innovation. This includes allowing our customers to extend and integrate our products with their business processes and continued work towards our vision of a unified CRM product to break down the silos across marketing, sales, and support. To wrap up, we believe there is tremendous opportunity across all three markets we operate in, We are investing for the long term and will continue to deliver modern, unified products that users actually love using. I will now turn it over to our CFO, Tyler, to share more on our financial results.