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: ⬇️⬇️⬇️⬇️⬇️
#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
#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
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.
#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.