Freshworks, a Nasdaq-listed software-as-a-service (SaaS) firm, reported a reduced net loss of $21 million for the fourth quarter ended December 2024, compared to $28 million in the same period of 2023. Revenue rose 22% year-on-year to $195 million in Q4.

“Freshworks outperformed its previously provided estimates again in Q4 across all our key metrics,” Dennis Woodside, CEO & president of Freshworks, said in an earnings release. He noted that the company achieved 22% revenue growth, an operating cash flow margin of 21%, and an adjusted free cash flow margin of 21%.

“Companies are leaving legacy vendors and coming to Freshworks for our uncomplicated, modern employee and customer experience service solutions,” he added. The number of customers contributing over $5,000 in annual recurring revenue (ARR) grew 11% year-over-year to 22,558, or 13% on a constant currency basis.

For the full year, Freshworks’ net loss declined to $95 million from $137 million, while revenue rose 21% to $720 million from $596 million. The revenue growth follows the company’s decision in November 2024 to cut 13% of its global workforce, affecting 660 employees.

Meanwhile, venture capital firm Peak XV Partners offloaded nearly a 1% stake in Freshworks a day before the Q4 results, selling shares worth $51.5 million in multiple open market transactions between December 9, 2024, and January 28, 2025.

For the first quarter of 2025, Freshworks expects revenue between $190 million and $193 million, with full-year revenue guidance in the range of $809 million to $821 million.

Freshworks’ shares closed at $17.86 on Nasdaq on Tuesday, down 2.4% from Monday’s close.