Freshworks Inc. (FRSH) shares soared 7.5% in pre-market trading on Wednesday after the company reported strong fourth-quarter results that exceeded Wall Street estimates, driven by robust demand for its enterprise software and AI solutions.

The cloud-based software company posted Q4 2024 revenue of $194.6 million, up 22% year-over-year and beating consensus estimates of $189.4 million. Non-GAAP earnings per share of $0.14 also surpassed analysts' expectations of $0.10.

Freshworks' Employee Experience (EX) business emerged as a key growth driver, with annualized recurring revenue (ARR) surpassing $400 million and growing 35% year-over-year on a constant currency basis. The company is gaining traction in the mid-market and enterprise segments as customers switch from legacy vendors like ServiceNow to Freshworks' enterprise-grade solutions without unnecessary complexity.

The Customer Experience (CX) business also performed well, with ARR over $360 million and a 7% year-over-year growth on a constant currency basis. Freshworks is witnessing strong adoption of its AI capabilities, with over 2,200 customers using Freddy AI Copilot and a 50% attach rate for new deals over $30,000.

For the full year 2025, Freshworks forecasted revenue between $809 million and $821 million, exceeding analysts' estimates of $813.6 million. The company expects non-GAAP earnings per share in the range of $0.52 to $0.54, also beating consensus expectations of $0.52.