Freshworks forecasts annual results above estimates on strong demand

Oct 31 (Reuters) - Freshworks forecast annual revenue and profit above expectations as it sees sustained demand for its relatively inexpensive software products for enterprises in a tough economy.

The company competes with larger rivals such as Salesforce and Zendesk for a share of customer relationship management pie, while attracting small- and medium-sized enterprise customers with cheaper offerings.

Freshworks has been able to win deals with larger customers and grab more market share as businesses look for competitive alternatives, analysts have said.

The company raised its annual revenue between $593 million and $595.5 million from its prior outlook of between $587 million and $595 million.

Excluding items, Freshworks projects annual profit per share between 23 cents and 25 cents from its prior forecast of 18 cents to 22 cents.

Analysts on average expect annual revenue of $591 million and adjusted earnings of 20 cents per share this year.

The San Mateo, California-based company expects fourth-quarter revenue in the range of $156.7 million to $159.3 million, compared with market estimates of $157.6 million, according to LSEG data.

Revenue in the third quarter grew by about 19% to $153.6 million beating estimates of $150.7 million. (Reporting by Jaspreet Singh in Bengaluru; Editing by Anil D'Silva)