Freshworks Inc. Class A Common Stock Oppenheimer 29th Annual Technology, Internet & Communications Conference

Yeah, Brian, thanks for having me. You're right, we've known each other for a long time, so I really enjoy doing this with you. Thanks again for inviting us.

Yeah. What I can say, Brian, is every deal is competitive, right? It's not like we are going into a lot of greenfield space and have the opportunity to go close a customer without any competition. This is an EX must-have product. If you're a company of any scale, you really need to have this. What is your right to win for us? It really comes down to really providing our customers with the enterprise-grade capabilities that they need without enterprise complexity. What do I mean by that? It's like, okay, the easy use of the product has to be there, which is kind of in our DNA, and I think started with us servicing SMBs from the very beginning, specifically on the desk side.

But really, as we add feature functionality, making the products continue to stay true to that DNA of ease of use, ease of deployment, time to value. That, coupled with the fact that, yes, what has changed over the last couple of years, is that we've really moved from just a pure ITSM product that is focused on core ticketing for IT, really, to now we've got multiple pillars across our product portfolio that are all on the same platform, staying true to that ease of use. Starting with ESM, which is Enterprise Service Management, selling to functions outside of IT, then moving to ITAM, which is IT Asset Management, which is a Device42 acquisition that we made. And now, ITOM, which is IT Operations Management, which is the FireHydrant acquisition that we made with AI across the entire portfolio.

Now, our AI capabilities, that is now something that if you want to compete, which I said every single deal is competitive, you have to have that. It's kind of table stakes at this point. You need to be able to deliver AI capabilities that is going to deliver efficiencies for your customer in the way that they operate. And the testament there is that as the companies are buying, the attach rates, specifically for Freddy Copilot, on significant deals, which we just say are over $30K, are very high, and they're growing. It just means that as companies are evaluating, they're evaluating that as part of your product. And you have to be able to demonstrate that you can deliver those AI capabilities, which we are. And so hopefully that answers the question. Every deal is competitive. Our right to win really comes with, hey, being able to deliver an enterprise-grade product without that enterprise-grade complexity.

That also means that we can save our customers money, compared to our competitors.

Yeah. I don't think it narrows. I think that if you look at what we're offering to our customers, the moat that we have is really that system of record and all of those workflows that are built in in an ITIL-compliant manner. If a company is going to come in, say, as, like I say, pure AI native, and through an agent, those things are still needed. You still have to have a system that's doing that internally, and we are that system. I don't say the moat is narrowing. I do think then it's like, okay, how can we actually make our software even that more attractive to a customer because of what it can provide on top of that moat?

That's where our investments in our AI Agent Studio for EX, in Copilot capabilities, and AI Insights, those are the things that are really providing all of that new capability on top of what we view as a pretty entrenched moat around that system of record and workflow that we've built over the last 10 years.

Yeah. Brian, thanks. If you look at what we've done over the last, say, 2 and a half years, it's really, okay, EX was really starting to take hold and get attention for larger customers, but purely on the corporate IT ticketing side of the house. As we started to engage with those customers, started to understand, okay, what would be needed for us to come in and do an end-to-end displacement of all of your other IT solutions that you might have internally. There's a couple things that came up. Number one is, okay, if you're going to deliver us a product, you have to make it look and feel as if it's one product, and everything has to work seamlessly together. Otherwise, what's the difference between having a whole bunch of disparate systems and that one product?

Second is, okay, here are the capabilities that we need. We started with the ESM, and ESM is enterprise service management. We saw a ton of our customers using our Freshservice product for functions outside of IT. When we went to talk to them, said, "Okay, what's going to require you to really make proliferate this out?" We talked to customers who weren't, and the customers who weren't, it was all about security and compliance around those different functions. Think about HR, which is the biggest one that we sell to today.

We spent about a year re-architecting the product, moving the entire database layer down, so that we could come up with workspaces that had that compliance, so that if you're an HR professional sitting inside of an ESM instance, you have the confidence that somebody in the IT instance isn't going to be able to just go over and look at all that data in there. That was a requirement, so we built that. The second thing that we looked at is, hey, one of the areas that we had light capabilities but not enterprise-grade was asset management.