Freshworks has just filed to IPO at $400,000,000 in ARR, growing an incredible 49% (!)
It's one of the first of a wave of India-U.S. global hybrid SaaS companies to IPO
5 Interesting Learnings: ⬇️⬇️⬇️⬇️⬇️
It's one of the first of a wave of India-U.S. global hybrid SaaS companies to IPO
5 Interesting Learnings: ⬇️⬇️⬇️⬇️⬇️
#1. A steady march above $5k in ACV
25% pay >$5k a year, but they represent 84% of ARR. That has gone up from 78% in 2019. Even with SMBs, it's bigger ones that are driving growth at scale
Going a smidge upmarket is key to Freshworks’ putting up the big numbers
25% pay >$5k a year, but they represent 84% of ARR. That has gone up from 78% in 2019. Even with SMBs, it's bigger ones that are driving growth at scale
Going a smidge upmarket is key to Freshworks’ putting up the big numbers
#2. NRR of 118%.
This is pretty impressive for a mid-to-high ACV SMB sale, although pretty consistent with where Zendesk is today as well at 120%.
This is pretty impressive for a mid-to-high ACV SMB sale, although pretty consistent with where Zendesk is today as well at 120%.
#3. 49% revenue growth from 20% customer growth.
Freshworks had about 44,000 customers on June 31, 2020 and now has 52,500 — 20% growth in customer count in a year. But ARR is growing 49%
The magic of high NRR from SMBs
Freshworks had about 44,000 customers on June 31, 2020 and now has 52,500 — 20% growth in customer count in a year. But ARR is growing 49%
The magic of high NRR from SMBs
#4. Both Freshservice and Freshdesk product lines are in excess of $100m ARR >each<
A reminder how key multiple products can be.
Freshsales is smallest of big 3 products, but even there, they have 6,500 customers, vs. 8,900 on Freshservice and 35,800 on Freshdesk
A reminder how key multiple products can be.
Freshsales is smallest of big 3 products, but even there, they have 6,500 customers, vs. 8,900 on Freshservice and 35,800 on Freshdesk
#5. From 10,000 customers in 2015 to 50,000 in 2021
Things compound in SaaS. 10,000 customers is a big milestone, and many SaaS companies with larger ACVs IPO around then. But it’s just the start. Freshworks quintupled its customer base from 2015 to 2021
Things compound in SaaS. 10,000 customers is a big milestone, and many SaaS companies with larger ACVs IPO around then. But it’s just the start. Freshworks quintupled its customer base from 2015 to 2021
And a few bonus learnings:
#6. 62% of revenue from annual subscriptions.
A reminder that, like Zoom, you don’t have to force annual subscriptions. 62% annual is up from 54% in 2019, so a big push there. But still, 38% of Freshworks customers pay monthly.
#6. 62% of revenue from annual subscriptions.
A reminder that, like Zoom, you don’t have to force annual subscriptions. 62% annual is up from 54% in 2019, so a big push there. But still, 38% of Freshworks customers pay monthly.
#7. Only 18% of customers purchase 2 or more products today — but those 18% represent 45% of total ARR.
Another way to see how critical a multi-product strategy often is at scale. Like at Box and other leaders, the bigger customers want and buy multiple products.
Another way to see how critical a multi-product strategy often is at scale. Like at Box and other leaders, the bigger customers want and buy multiple products.
Most of all, Freshworks is a reminder of just how many winners there really can be in SaaS today.
Competing with both Zendesk and Salesforce, as well as HubSpot and more, they are still growing an epic 49% at $400m in ARR.
More here:
saastr.com/5-interesting-…
Competing with both Zendesk and Salesforce, as well as HubSpot and more, they are still growing an epic 49% at $400m in ARR.
More here:
saastr.com/5-interesting-…
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