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Freshworks (FRSH) Partners With AWS to Expand SaaS Offerings

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Freshworks (FRSH - Free Report) recently announced that it has inked a multi-year strategic collaboration agreement with Amazon Web Services (“AWS”). This collaboration, set to kick off in early 2024, aims to elevate Freshworks' capabilities by offering its comprehensive suite of solutions as Software-as-a-Service (SaaS) through the AWS Marketplace.

The AWS Marketplace serves as a digital hub, hosting thousands of software listings from independent software vendors (ISVs). With this collaboration, Freshworks aims to provide AWS customers with innovative ways to procure and leverage its solutions, including industry-specific, AI-powered business applications that will be hosted on AWS. This strategic move is expected to foster enhanced customer and employee experiences, ultimately helping businesses operate more efficiently in the era of artificial intelligence.

The collaboration emphasizes the synergy between Freshworks and AWS, combining the strengths of both entities to empower businesses to deliver superior customer and employee experiences.

AWS and Freshworks have previously established multiple integrations to provide customers with a seamless experience in managing and utilizing AWS resources alongside Freshworks solutions. More than 500 shared customers currently benefit from this integration, actively using Freshworks products in conjunction with AWS services such as Amazon Connect, Amazon CloudWatch, Amazon EventBridge, AWS Lambda and more.

Freshworks' commitment to excellence has been recognized by AWS through the attainment of various competencies, including AWS Retail Competency, Small and Medium Business Software Competency and AWS Cloud Operations Competency status. Freshworks is a valued member of the AWS Partner Network and an AWS Public Sector Partner. Furthermore, the company actively participates in the AWS ISV Accelerate program and AWS Global Startup program, offering its solutions in the AWS Marketplace.

Freshworks’ Prospects Remain Bright

Freshworks shares have jumped 24.8% in the past six months, outperforming the Zacks Computer & Technology sector’s return of 13.5%. It has been benefiting from a strong portfolio and a strong partner base that helped in attracting new clients.

Freshworks has expanded its portfolio with the launch of an AI-powered Customer Service Suite that combines Freshchat, Freshdesk and its generative AI, Freddy AI. Solutions like Freddy Self-Service, Freddy Copilot and Freddy Insights are expected to drive top-line growth.

Expanding partner base is noteworthy. Freshworks recently announced an integration with Zuper, which will help it enhance customer relationships and experiences for businesses with field service teams.

The Freshworks-Zuper integration is now available on the Freshworks Marketplace, which is powered by the Freshworks Neo platform. The platform allows developers to easily build and publish apps that integrate with the Freshworks suite of products.

The company benefits from its partnership with Microsoft (MSFT - Free Report) . Its Freshservice customers are using more Microsoft Teams as adoption has seen an average increase of 42% over the past three years.

The increase can be attributed to the integration of the generative-AI-powered Virtual Agent within Freshservice, an IT service management solution and Microsoft Teams’ ServiceBot. These give employees round-the-clock support and can facilitate rapid resolution of their needs within Microsoft Teams.

Freshworks expects fourth-quarter 2023 revenues between $156.7 million and $159.3 million, indicating 18-20% year-over-year growth. Earnings are expected to be between 4 cents and 6 cents per share.

The Zacks Consensus Estimate for fourth-quarter revenues is pegged at $158.11 million, suggesting 18.73% year-over-year growth. The consensus mark is pegged at 5 cents, unchanged over the past 60 days.

Zacks Rank & Stocks to Consider

Freshworks currently has a Zacks Rank #3 (Hold).

BlackLine (BL - Free Report) and CrowdStrike (CRWD - Free Report) are some better-ranked stocks in the broader sector, each sporting a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

Long term earnings growth rate for BlackLine and CrowdStrike is pegged at 50.56% and 36.07%, respectively.

Shares of BL and CRWD have returned 7.2% and 86% in the past six months, respectively.

Disclaimer: This article has been written with the assistance of Generative AI. However, the author has reviewed, revised, supplemented, and rewritten parts of this content to ensure its originality and the precision of the incorporated information.


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