Freshworks Inc.

Good day, and thank you for standing by. Welcome to the Freshworks first quarter 2023 earnings conference call. At this time, all participants are in a listen-only mode. After the speaker's presentation, there will be a question and answer session. To ask a question during the session, you'll need to press star 1-1 on your telephone. You'll then hear an automated message advising your hand is raised. To withdraw your question, please press star 1-1 again. Please be advised that today's conference is being recorded. I would now like to hand the conference over to your speaker today, Jun Ha, Vice President of Investor Relations. Please go ahead.

Thank you. Good afternoon, and welcome to FreshWorks First Quarter 2023 Earnings Conference Call. Joining me today are Girish Mathurbutam, FreshWorks Chief Executive Officer, Dennis Woodside, FreshWorks President, and Tyler Sloat, FreshWorks Chief Financial Officer. The primary purpose of today's call is to provide you with information regarding our first quarter 2023 performance and our financial outlook for our second quarter and full year 2023. 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 business and industry, including our financial outlook, macroeconomic uncertainties, management's beliefs, and certain other assumptions made by the company, all of which are subject to change. Such risks include, but are not limited to, our ability to sustain our growth, to innovate, to meet customer demand, and to control costs and improve operating efficiency. 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 10-K, and our 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 call, 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 sites to access our earnings release, supplemental earnings slides, 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.

Thank you, June, and welcome, everyone. Thank you for joining us today on Freshworks Earnings Call, covering our first quarter of 2023. We started the year off strong, achieving our first quarter of non-GAAP operating profit as a public company. We exceeded our expectations for Q1, with revenue coming in above the high end of our financial outlook range at $137.7 million, and we outperformed our estimates for free cash flow with $9.1 million in Q1 as we drove meaningful efficiencies in our business. In today's environment, as businesses are seeking efficiencies in their software spend and seeking faster time to value, I'm excited to see the Freshworks value proposition resonate even better with larger companies. Before diving into our business drivers, I should note that starting this quarter, we are providing supplemental slides of some of our financial results. These slides can be found on our investor relations website, and we hope you find them to be useful. During these uncertain economic times, we are committed to sustaining growth through four key strategies that I outlined last quarter. First, our focus on product innovation continues to allow us to meet customer demands for efficiency by streamlining IT processes, enhancing omni-channel customer experiences, and launching an AI-powered fresh marketer beta program. Second, we are experiencing strong growth from mid-market enterprise customers, which Dennis will discuss further after this. Third, our focus on expansion and helping our customers adopt more of our solutions continues, and Dennis will elaborate on this. Finally, we are dedicated to improving our operating efficiency. As I mentioned, We delivered our first quarter of operating profit on a non-GAAP basis since becoming a public company. Tyler will cover this in more detail later. Beginning with our latest product innovation, this quarter, our teams launched enhancements in our CX, ITSM, and CRM products that give our customers even faster time to value, freeing up agents to do their most rewarding work. Starting with ITSM, the fresh service team has been working hard to expand its IT operations management capabilities. Last year, we added support for Microsoft Teams and WhatsApp, allowing customers to receive on-call notifications on those channels. To date, there have been over a million alerts per month, highlighting the success of our service health monitoring and alert management capabilities. One notable customer, Phila, a global sportswear manufacturer, chose Fresh Service for its ease of use and configuration. In Q1, we also added new capabilities for workflow automation and workload management in Fresh Service. The workflow automator feature helps businesses digitize their workflows and automate repetitive tasks. The workload management feature provides supervisors with full visibility of assigned work, assists in workload monitoring, and helps prevent employee burnout. FreshService has also expanded its services beyond IT teams with the launch of FreshService for Business Teams. Notable customers using FreshService for Business Teams include Grinnell University in the UK and the Commercial Bank of Dubai. FreshService's commitment to providing cost-effective solutions with enterprise-grade capabilities makes it a strong contender in this market. In our CX business, Tata Digital turned to FreshDesk as a cost-effective solution for their super app, aiming to scale support for over a billion potential users in India. In just six months, Tata Digital achieved a 50% ticket deflection and a 50% increase in customer satisfaction. With Freshdesk, another customer, Riverside Insight, was able to improve agent productivity by tracking real-time ticket trends, leading to an 80% reduction in login-related tickets, and improve customer satisfaction. Additionally, our Q1 release of the unified agent workspace in Press Chat enables agents to work efficiently across channels. And our self-service bot experiences provide intelligent inquiry deflection. Turning to our enhanced conversation widget, over 1,500 early adopters are already using this with more than half deploying bots. Purpile, a leading beauty destination in India, adopted fresh desk for a unified customer support solution by leveraging our gpt features perpile achieved an impressive 95 first call resolution rate as we continue to innovate we are dedicated to empowering businesses like these to provide exceptional customer experiences now turning to our crm business our focus in q1 was on enhancing sales sequences and enabling cross-channel personalized marketing campaigns to help marketers boost customer engagement. We have upgraded our fresh sales software with an embedded e-signature feature expediting the deal-to-code process for sales teams. In response to marketers' demands for better email performance, we have integrated GPT-powered Freddie AI into our fresh marketer marketing automation platform. This powerful fresh sales, fresh marketer combination is driving significant results for clients like Evans Manufacturing, a plastics manufacturer. After implementing both solutions, they witnessed a 3x increase in email open rates, over a 200% surge in sales activity, and a substantial rise in revenue. The Freshworks Neo platform is the driving force behind our innovative products. streamlining app development and unifying customer data and analytics across Freshworks products. This summer, in our product launch, we'll have more to share about our platform with new AI capabilities. Freshworks products are proving to be a powerful alternative to legacy software providers. Our products are offering more flexibility and helping customers avoid the pitfalls of cumbersome implementation and unnecessary features. Whether it's for super apps or fashion footwear, We believe our solutions are the future of app development and business growth. Lastly, before turning it over to Dennis, let me also take the opportunity to announce that we will be holding our first investor day on September 7th in San Francisco. Please save the date as we will send out more details later. We look forward to seeing you there. Now, over to Dennis to talk about what we are seeing in the market, how larger customers are driving our business growth, and how customers are expanding using our product.