Greetings. I wanna welcome everyone who's dialed in to the Oppenheimer's 27th Annual Technology, Internet, Communications Conference. I'm thrilled for this session to have a discussion with Freshworks, ticker FRSH. And we have with us as our speaker, a longtime CFO in the software industry, as well as at Freshworks, Mr. Tyler Sloat. So, Tyler, how are you? Great to see you again.
I'm good.
Thanks for your time tonight.
I'm good. Brian, thanks for having me. We've been doing this together for a long time, so this is good to have another year.
Tyler, let's if we can maybe just start the discussion off from a real 20,000 feet level. You know, we may have some listeners on this call that aren't as familiar with, with, the company as I am and, and you are with Freshworks. So, help level set the discussion. You know, you know, share with us, you know, what Freshworks does, background, and most importantly, the problems that the company is solving for your customers.
Sure. So Freshworks, we were founded in 2010, really, as a customer help desk solution company. And originally, the company's name was Freshdesk, and that was our first product, customer support solutions. Really, you know, approaching support in a different way, knowing that at that time, the whole world was moving to more omni-channel digital interactions with your customer base. Today, we've evolved over time. We're a truly multi-product company, and really, the goal is to build AI-powered software designed to make, you know, IT, customer support, and sales and marketing, kind of easier for our customers. Our growth now is coming from IT, which is our Freshservice product, which is, you know, just really incredible traction. That product kind of evolved out of our Freshdesk solution, meaning that we...
You know, a couple years into selling Freshdesk, we saw a lot of our customers using Freshdesk internally for IT ticketing. And although that's great, we also knew those customers needed a purpose-built solution for IT, and so we built it from the ground up using some of the, you know, the same ticketing workflow capabilities that we already knew and were experts in at that time, but building all the other capabilities into what we consider our IT offering today, which is Freshservice. And that now is, you know, really regarded as the number one SaaS alternative underneath ServiceNow in terms of, you know, what companies we're going after in the market, and we're absolutely leaning into that to continue growth.
At the same time, Freshdesk and our Freshsales and Freshmarketer products, which we consider our CX products, really serving a big need for mainly the SMB to low-mid market customer base globally. And we're gonna continue to lean in to capturing that market as well, even though that market is a little bit more pressured in terms of, you know, what has happened to SMB over time and happened to kind of just companies expanding in those spaces. Along with kind of focusing on IT and, you know, really focusing on the ICP for our CX products, the other thing that we're very focused on is building our AI capabilities across all of our products.
You know, we highlighted in our call that we've seen really good traction with our Freddy Copilot product, which is kind of an agent add-on across both IT and CX. It's only been in kind of selling in GA for a quarter and a half now, but we've put a bunch of stats out there, and really starting to see really good traction on that. And then also on Freddy Self Service, which is not sold per se, but it's gonna be utilized through usage of bots, and we're starting to see good traction on customers starting to use our self-service. So that's where we're focused today. We are, you know, we're a company that we're, we're growing across all of our product lines, but I said IT is doing really, really well, meaning it's still a 30+% grower.
and we're very, very global, where that unlike a lot of kind of Bay Area SaaS companies, because we're founded out of India, and really took a global approach from the very beginning, we have 40% of our, our business coming from North America, 40% from Europe, and 20% from the rest of the world, which to me, you know, kind of presents a huge opportunity both to lean in to areas that we may not be, as saturated, but also to look at the expertise that we've had, on attacking kind of these global markets, specifically global SMB markets, and use that as a competitive advantage for us. So that's where we're at today. doing very well financially. Actually have flipped to free cash flow positive and doing that sustainably now.
Just did our first real acquisition in four years, doubling down on our IT kind of strategy. So that's a summary, Brian, in a nutshell.
That's terrific, Tyler. I think that was a great overview, and we'll dive deeper into a lot of those topics. I forgot to mention, if anyone has a question of Tyler, feel free to just type it into the chat, and I'll get it, and I'll be sure to ask Tyler. Tyler, maybe still sitting at a high-level view here, talk to us about the moat, you know, the durability of the business. Explain why Freshworks is winning in the market and the differentiation and, you know, ultimately, the moat for the business.
Yeah, I can talk a little bit around the moat, but also why I joined 4.5 years ago.
Mm-hmm.
I've been at a lot of software companies, and seen a lot of software companies. I think it's incredibly difficult to build software, what I would consider the right way, specifically SaaS software, that is incredibly easy to use, incredibly easy to onboard, and efficient from a cost perspective. When you look at that, it's like that's, you know, designing software for the SMB. And then if you stay true to those first two characteristics, which is incredibly easy to use for the end user and incredibly easy to onboard and get to that usage, but you add feature functionality over time, then you become relevant to kind of Mid-market and Enterprise, and you start getting pulled into deals.
That's what's happened with Freshworks, that we were, you know, we focused on building for the SMB first with the DNA of ease of use, and then over time have added feature functionality. That's why you see across our product lines, you know, we have this long tail of SMB that we're capturing every single day on complete inbound PLG motions, but at the same time selling the same exact products up to customers that are paying us $1 million a year. It's very, very difficult for companies to start by building for the enterprise and then try to move down. But if you do the opposite, it is actually a huge competitive advantage.
The competitive advantage is because you can go in and demonstrate a low total cost of ownership for your customer base, which equates to a high ROI, and really show them a product that's gonna meet all their needs, but also be really incredibly efficient from a cost perspective for them, and that is our strategy, right? Build great software with great value, and that we've taken that approach across all of our product lines. At the same time, being able to do things because of our competitive advantage on our access to really highly technical talent out of India, that innovate really, really fast, but also stay ahead of the curve on things like AI, where that, you know, you see companies that are scrambling, where...
You know, we've had AI for years, and we've had our Freddy product for years and years and years. Now, it's, you know, obviously being supercharged with LLM models, but it's things that we have already seen and been able to invest in, and so we're not necessarily playing catch-up. We're really trying to stay ahead of the curve, and, and we're gonna continue to do that. Focus on building great software at great value, making it really easy for our customers to use that software and see the value for what they're paying us.
Terrific. Let's let's run through some of the segments of the business here. So, you know, let's start with Freshservice in the the IT. You hit upon it on your intro, you know, that it, it's, it's growing more than 30%, and this is not a small business, right, right, Tyler? It's it's a quarter of a billion dollars or rather or around there.
Well, more. So on our last call, we said it's over $340 million in ARR-
Wow!
... growing at that pace.
So, uh-
And that does not include, you know, that does not include any of the figures with Device42, which is the company that we just bought.
So tell us, you know, why is this happening? You know, I cover, you know, the software landscape. Very, very few. I mean, I could probably count on my, my hands how many businesses are growing 30%+ in the current macro environment, and, and, you know, this is obviously at a large scale that you're able to do it. So, you know, why is that business so strong? Why are the demand trends so favorable, and, and, and the execution with Freshservice? You know, let's dig a little bit under the covers, what's helping to drive the momentum of that business?
Yeah. Yeah, I think first and foremost, it's a testament to the product itself, which, you know, has got great reviews by, you know, on one side, obviously the analyst community and folks like that, not the industry analysts, not the, the investment analysts, but also our customer base, right? So we've talked about, you know, greater than 110% net dollar retention there. Talked in the past about, you know, what I would consider enterprise-grade churn rates, you know, so gross retention rates of, of less than 10%. Really competitively positioned very well, mean that we are very much focused on that mid-market, low enterprise space. We are seeing ServiceNow more and more and more as we get pulled into larger deals.
But really going to head-to-head, you know, with a lot of legacy stuff that, you know, I think these companies, whether it's, you know, BMC Remedy, Ivanti Service, or folks like that, that have been historically on-premise and now starting to go to cloud migrations, which is great opportunity for us. Or going against, companies like Atlassian, with their JSM product, which is really focused more on inter- you know, engineering-based organizations, is where, where they see, positive results. Our product we built with the same mindset that we use for all of our products, so great ticketing capabilities, which we already knew.
But for IT, you need much more than that, and really focus on, okay, how can we get into the, the VP of IT or the CIO, get them up and running with a great product that they can use really, really well, but also see immediate value, and then over time, deploy across other, you know, functions within the organization, but other IT applications? And that, and that's what we've done. And even with the products that I would say are less mature in that CX category, like for us, we have ESM, which is a kind of enterprise service management. We're now selling into, you know, HR and finance and legal organizations within companies. Company functions that need workflows and ticketing that, you know, they, they aren't really – they don't need a full-blown IT solution, but they need purpose-built workflows.
Even where I would say our products there still need work in terms of the workflows that we need to customize and build for those functions. It's already getting great traction from customers because it's better than a lot of the things that are out there. And what we know is that as we accelerate those roadmaps, it's just gonna get better and better for us in terms of our capability to engage with our customer base. We also knew that, you know, from an enterprise perspective, we had some areas of the product that were not as competitive with, say, ServiceNow. One of them specifically was ITAM, where we had a very light kind of ITAM solution that we built internally. We could have continued to build it and gotten to, you know, what would've been enterprise grade over time.
But, you know, we looked out in the market and saw that, you know, Device42, who we, we had partnered with already for over a year, that we knew was gonna help meet the need for a larger enterprise organization. That's why we brought them on board and, and acquired Device42, really to meet that larger enterprise need, which just makes us more and more competitive as we go talk to that 10,000-20,000 person organization. These are all, you know, attributes of why Freshservice is doing really, really well. Built with the same DNA of, like, can we get up and running within a company, you know, with very limited implementation? We're talking in kind of quarters of getting live for a large organization as opposed to, you know, what ServiceNow would measure sometimes in years.
And then give that company all the feature functionality that they need, but also, once live, a product that doesn't need an army of administrators internally to use to actually keep up and running internally. And that's what we're seeing, that our customers are seeing the most value, right? That the products that do everything they need without the headaches of having to keep them up and running.
Great. Tyler, you mentioned about Device42, as part of, you know, the IT suite here. So, you know, for our listeners who are unfamiliar with this, you know, Tyler mentioned ITAM, which is IT asset management. So just think about, you're a big company and having to manage all your licenses and your software and technology and making sure compliance and governance, et cetera. It's a big problem in IT department that Device42 helped solve. But the question I wanted to ask you about this acquisition is: how should we think about the company Freshworks being able to achieve the synergies, the growth synergies, if there's cost synergies? Maybe you can talk a little bit about bringing the two companies together-
Yep
... and, you know, how does, you know, one plus one make four, versus, you know, typically one plus one make one?
Yeah, I can say. So Device42, we already knew the product, because we had been reselling it, you know, to, you know, customers who had that more sophisticated ITAM need, and we've been doing that for over a year. And so we already knew that the products would work together, and that they, they could, you know, be synergistic in a way that, our customers can use them. That being said, it still doesn't have the tight integration that we require for our customers to have a great experience. So that's the, you know, first roadmap item that is being worked on right now, is to deeply integrate the products to make, you know, both the agent and the admin experience really, really, seamless for our customers. So, so that's the first thing.
The second is, Device42 is a term license product today. So, you know, they really a very non-technical description. You know, they will say a customer will deploy out kind of like a control hub in their own environment, and then there's a thin client out on all of the assets that's being managed. Our goal, the second main roadmap item, along with, you know, overall roadmap items, is to really, you know, quote, unquote, "cloudify" the product, right? Bring that control hub up to the cloud, be able to put it into an AWS and multi-tenant environment, the same way we have with Freshservice, and be able to, you know, really serve it, sell it as a true cloud offering.
And so those are the two main things that we're working on right now that will take. You know, we said the first one is kind of Q1 in terms of the deep integrations. The second is at the end of next year. Now, what is the value prop for us when we looked at the deal? I think that was part of your question, Brad, 'cause it really wasn't about, you know, the revenue that Device42 was having, 'cause we've got questions on multiple. And, you know, we kind of gave what the impact to our guidance was and things like that. We actually think there's gonna be short-term disruption on much of the Device42 revenue. A lot of that is because, you know, they were selling through other partners.
Well, they're selling mainly through partners, but to, you know, some of our competitors who are also using Device42, and we think some of that will go away, which is natural. And we also just think there's gonna be some disruption as you go through integration. But the real value prop is looking at our, you know, 17,000 customers that we have for Freshservice, and looking at the subset of those customers that really could see value in having Device42, the ITAM capabilities that we're gonna have going forward. And really, you know, number one, using this as an upsell motion across that customer base. And then, number two, as we go forward and compete in larger and larger organizations, which is already starting to happen, you know, making our offering that much more competitive.
And that's really the thesis around why do the deal was really about the go forward, not about the immediate incremental. From a cost perspective, we said, "Hey, we expect it to be relatively neutral." You know, clearly, there's gonna be a little bit of cost burn we're bringing down, but they were being run relatively break even, which is a good and bad. That means that they also weren't investing a ton in their go-to-market motions because they're being required to run break even, and as a small company, that's hard. And so, you know, our thesis is, as soon as we put this into our go-to-market machine, you know, we'll be able to accelerate growth going forward.
Perfect. Tyler, let's switch topics here and talk about AI, generative AI. That tends to get a lot of questions, too. You know, Freshworks is very unique, I would say, in the software landscape, that you're very early in terms of coming to market with SKUs, not just AI technologies, but actually monetizing on the top line with AI. So maybe we'll just start there, just as the overview. Tell us a little bit about Freddy AI, about Copilot, and your AI products, and you know, how the uptake has been so far compared to your expectations. And maybe if you can throw in there, like, a use case, just to-
Sure
... give a better understanding of what these products are helping to solve the efficiency gains.
So we have two main AI products that are live and being sold today. And I should, you know, tell the audience, Freddy, which is our moniker for our AI internally, has been around for years. You know, much, much earlier than, you know, when OpenAI announced ChatGPT in March of, you know-
Right
... a year ago, whatnot. And so when we actually look at... You know, what we did is we said, "Okay, we're gonna take our AI products, which we've had, but we now need to supersize them for, you know, make sure that we can utilize all the LLM models that are out there. Or not all of them, but utilize LLM models and actually, you know, provide great products to our customer base." So the two products that we announced and that are now live are Freddy Copilot and Freddy Self Service. So let me talk about Copilot. Copilot is across both our CX products and our IT products. And it really is, it's an add-on to an agent that provides a lot more capabilities of AI for that agent.
It has been live since the middle of Q1. So this quarter, so we've had a quarter and a half of selling this product. And the initial results actually are quite positive, and so for us, in terms of what our expectations were. Number one, we have 1,200 paying customers now that have added Copilot across, you know, CX and IT. And at 1,200, the ARPA, it's a $29 add-on price, is actually we've been realizing pretty good numbers against the ARPA. We didn't say we haven't put exactly what the ARR numbers are, 'cause they're not super mature yet, but you can imagine 1,200 customers that have taken. We also seen a 40% attach rate on our larger deals. So deals over $30K have a 40% attach rate for Copilot.
And so these are all good signs so far of customers actually, you know, seeing the value of Copilot, and then, you know, choosing to buy it as they are engaging. Now, it's important to note that customers can beta the product as well first, right? And so they can use it in kind of a pilot mode, a Copilot mode pilot mode for Copilot, and actually, you know, choose to buy once they see the value, and that's what we really wanna demonstrate. I think there's, you know, over 70 use cases for Copilot today, and that's just continuing to grow as we keep adding feature functionality to that product. And allowing customers to see, hey, for an agent with Copilot, how much more productive they can be with an agent without Copilot?
And, you know, really ending with a better end customer experience, so our customer's customers. You know, that's what's gonna determine and be deterministic of what they'd be willing to pay. So what are some of the, you know, the use cases that you asked for, Brian? So, like, Summarizer is a great use case, where, you know, there could be tickets both on, you know, internal IT, but also for CX, coming in from all kinds of different channels. Whether, you know, internally, it could be Slack and Teams, as well as email and things like that. Where for CX, it could be, you know, chat, WhatsApp, Apple Business Chat, other types of SMS, all the way to calling, all the way to, to email. Tickets coming in, for the same customer, and issues coming in, oftentimes going even over, shifts of support folks.
When escalations happen, oftentimes an agent has to spend a lot of time looking at all the summary of the tickets from that one customer, summarizing it up to do that escalation. Well, with Freddy Copilot, they can just push the Summarizer button, and Freddy will go in and actually summarize all the tickets and create that escalation. The simplest ones are things like Thank You Detector, where, you know, tickets, you know, get resolved, and then another ticket will come in from that customer, where the agent already thought they resolved it.
Takes them time to go open that up again, see if there's another issue, where oftentimes it's just the customer saying, "Thank you." And so the cu- the ticket really is still resolved, but the agent would have to spend a little bit of time to actually figure out that that's not another thing coming in there. First Best Response is another use case, where, you know, tickets come in, and the agent can actually, or that Freddy can look at that ticket and then recommend that first best response, and then even push a tone enhancer button, that actually can, if they wrote the response themselves, change the tone. These are all use cases that are gonna continue to evolve, but they're use cases that we're building based on our customers' feedback, okay?
Freddy Self-Service, we've said we have 900 customers who are using Freddy Self-Service. Now, what that means is we have 900 customers who have purchased additional bot sessions. So we don't sell Freddy Self-Service as a product. What we sell is our chat products that are either built into Customer Service Suite and to our Freshdesk product, with Freshchat. And in using chat, we monetize that through usage, and those are bot sessions. And so now, as Freddy Self-Service continues to evolve, the usage of those bots will continue to evolve, and then customers will have to buy additional bot sessions. And that's still pretty early, and in fact, it's gonna-...
It, it's still gonna be early, I think, until we come up until we release, which is in beta today, what we call flowless bots, which is a capability for our customers to not have to go in and build the bots themselves. That actually, you know, there can be an AI bot builder internally. And that's really gonna serve the needs of especially the non-technical, longer tail SMB customers that don't have these capabilities internally. And so that's in beta today, and once that's released, we expect there to be traction. That in general, the results are really good so far in terms of what we're seeing. Now, we just have to continue to play it out.
I think the biggest hurdle we have is adoption, really making sure that our customers know how to use these products, that they are trained, that we can get their agents trained up on the capabilities. And then once they see the value, you know, then being able to participate in the efficiencies that they're seeing through monetization. And so that's the summary of our AI products as it is today.
That's terrific. Tyler, I have a question. Just the brand Freddy, you know, where did that come from? Is Gee the company, they're big Queen fans or something?
No, no, that's not it.
Did Freddy see it?
I mean, it is from Gee thinking about it, but the reality is, and the little moniker is like a picture of a little, you know, dog's face, and it's like, who is, you know, the employee who is the person's best friend? And that's their little dog. And so Freddy is like a little, a dog's name that is supposed to be your best friend as an agent to help you do your job better.
Great.
Yeah.
Um, so-
There's a lot of debate internally about that brad.
Ted, let me ask you about, you know, just to get your perspective, you know, maybe some of the pushback, you know, just on AI. You know, if I think about generative AI, the excitement, it seems to swing back and forth with software, you know? But, you know, even though we're so early in evolution, you know, for generative AI. But I want to ask you where you stand with this question that I get from investors all the time, that generative AI will be so good that it will just be the end of service agents. We won't need that agents anymore, the software, generative AI software will just do everything.
You know, to me, it seems a little far-fetched, but curious to get your views, and maybe the thinking on the other side, that generative AI actually creates category growth, not category compression. So, a high-level question here, but, you know, certainly a topical debate among software investors these days.
Yeah, I think it is a debate. I think the debate is how fast is that gonna happen, too, even if you believe that it is gonna happen. Do I personally believe there's gonna be disruption across agent-based models from AI? Absolutely. And I think just like any other software product, that if you look at software from 20 years ago versus software from today, it's completely different from what you get in your software capabilities. And let's just say, not from today, from 2 years ago, before you had LLM. And so I think the first thing is that if...
I do believe that if you are selling solutions that are, you know, for support or, you know, internal IT, or any type of agent-based model where there's root functionality that's going on, that if you don't have AI built in to your solutions, you're just not gonna be competitive, and it's gonna be almost table stakes at one point. So the question is, okay, does it really remove all of the human need? I totally doubt that. At the end of the day, there's just things that happen that will require human intervention through escalation or whatnot. Can you actually get products like our Freddy Self Service product that actually can do, you know, issue resolution without human intervention for a majority or a lot of the issues that are coming in?
Yeah, I think that's gonna evolve over time. A lot of it has to do with the amount of data internally that a customer has, because each customer, you know, is not a complete snowflake, but that they are all different. And even self-service, one of the, you know, the bigger challenges is pointing to the data internally that that customer has, that could be their knowledge base or all their support articles and everything else, on how they're actually gonna- an AI model is gonna learn from all that previous data, and then be able to turn around and answer questions based off of that. And that, you know, is gonna be a work in progress, both for customers, as well as for the software solutions to make it easier for them.
We kinda know some of the problems that are in front of us, and now it's really how do you go build to meet those problems? But I think it's gonna take some time. What I do think is that if it's table stakes for customers or for companies who are building software, that over time, stuff like this becomes a little bit commoditized, and you've got to produce, you know, show a ton of value for your customers. But what we have seen through the evolution of all these markets is that there will be capabilities to monetize, even if, you know, you're making it much more efficient, and that customers will be willing to pay if you're providing value to them. So I think what's gonna evolve the most is the pricing and packaging for these products.
You're starting to see some companies going to pure usage-based models, right? And say, "Okay, for agents, we're gonna maybe eliminate the need to even buy an agent, and it's gonna be pure usage." I think that could be a path that starts to go down, but what I do know is that, you know, companies, specifically customers, they don't like unpredictability. And you tend to see pure usage-based models disappear over time, to be replaced with something that is a combination of predictability with usage. And I think that'll happen, too. So all of these things will go through an evolution, and, you know, we will essentially end at a point that meets the needs of both the company providing the software, as well as the customers that they're selling to.
Last question I just wanted to ask you on AI, I think that is topical, is what the... and maybe it's just anecdotal, there's not enough data yet, but what companies are doing with their headcount, how they're reallocating the productivity gains that, you know, they're achieving from these, from your products, your AI products. So, do you have any insights today on whether your customers are slowing hiring or even reducing headcount with the productivity gains realized? Or, you know, on the flip side, are they reallocating that time to their agents to do other, you know, functions and tasks within the business? Curious to get your perspective.
Yeah. Yeah, I mean, let me start by saying we don't have any evidence of our customers actually reducing agent counts yet because of AI. Now, would new customers be buying more agents, that you know, now they're buying a set of agents with Copilot on it? Would they have been buying more to start, if we didn't have those Copilot? We don't actually know the answer to that, right? Because we're starting with a new deal. But on our existing customers, we don't have any evidence yet of customers downgrading agent counts and adding Copilot. Over time, potentially that could happen. But the whole way we've looked at pricing Copilot, you know, should offset any of that downgrade. And again, we'll kind of have to continue to evolve this.
I think when you take away, not Freshworks, but any company, and then as a CFO, I think what you're seeing across the entire corporate landscape and, you know, kind of CFO's mandate right now is we need to be looking at automation across, you know, all of our functions, but also AI, and looking at how we can optimize to run our businesses, and not hire as many people, right? If necessary. Specifically, probably on lower-end roles that can sometimes be replaced, with automation and removing manual work. I think that's just a theme that's going to continue, in general. So it might change, you know, over time, the landscape of your employee base.
And you could look at it both ways, where you could hire less skilled folks who are now going to be empowered to do higher function jobs, because they're AI-enabled, or, you know, replacing a lot of the lower skilled work 100% with AI, as you mentioned earlier, Brian. I think this is all going to be an evolution, but what I do know is that my peer set, the ones I talk to, are very focused right now on trying to drive, you know, both automation and AI capabilities internally, on how to actually become more efficient as organizations.
Tyler, last question to ask you is just on the leadership, because there's been some changes, with the leadership team, and so just to recap for, for our listeners, you know, Gee, who was the founder of the company, he was the former CEO, former partner with Tyler, he's moved up to the chairman role. Dennis Woodside, the former president, has taken over as CEO. You also put out a press release. You appointed a new European sales leader, last month, too. So, maybe two questions. One question would be maybe what's the genesis behind these changes? Maybe it's just the scale of the business, and from that. And then maybe the other question is, should we expect new initiatives or changes from these new leaders to be more incremental or more material, for the business here, you know, in the near term?
Yeah. Yeah, so let me talk about, Gee and Dennis first, and kind of like the CEO transition. We brought on Dennis two years ago, right? And I think, what folks don't quite understand is that he was brought on as president, but the entire management team actually reported to both Gee and Dennis, and they were really side by side. So he didn't have the co-CEO title there, but he really was, right next to Gee, from a leadership perspective, and helping to really, you know, reshape and run the business. Part of the thing was, like, making a lot of go-to-market changes, over the time he was here. A lot of those changes kind of came into fruition at the end of last year.
Meaning that what we really realized is that we have two different businesses. We've got in a Freshservice business that is really focused on outbound and field and really serving the needs of kind of this mid-market, low enterprise customer base. And we have our CX products that are really, you know, more inbound, focused on SMB to low mid-market. Some of them are definitely, you know, enterprise businesses with our customer support solution, but really focused on that. And they're two different go-to-market motions. So we actually, you know, restructured much of the organization. We appointed Mika, Chief Customer Marketing Officer, and she owns all of inbound, and we hired Abe as our Chief Field Officer, hire all of outbound. Abe just started in the middle of Q1. Mika was put into this role at the beginning of the year.
And it's really saying, okay, they're both product nuances, but also go-to-market nuances on all of that. Abe obviously comes in and, you know, really focused on, hey, if we have earned the right to go participate with larger organizations on the enterprise, we need to build a more sophisticated enterprise sales motion. And it's really about making sure we have the right people in the right places. And like any leader, he's going to look at his entire team.
So not only we do have a new head of Europe, we have a new head of partnerships, we have a new head of professional services, you know, and other leaders that he has brought on, over the last, let's call it 60-90 days, that all take a little bit of time to, to kind of, you know, shape their organizations. But, you know, all with the goal of driving in a lot of maturity into that sales process. Same thing on the inbound, really focusing on how do we make it much easier for smaller and mid-market customers to buy our products, focus much more on PLG motions and really on the ICPs, and that's what Mika is very, very focused on.
It will take a little bit of time for everybody to settle in and to build their own orgs and to do this, but that is the strategy, and we've been pretty open about it. And so that, you know, once that motion was... like, the pieces were starting to put in place, that's where I think Gee and Dennis got together, and Gee said: "Look, I really want to focus on product, and specifically AI, and, you know, and our CX stuff, but, you know, really make sure we're doing what I really enjoy doing." And that's where he became executive chairman and appointed Dennis as CEO.
You know, there's going to be, I'm sure, subtle nuances and making sure we have the right people in the right places, but we've been pretty open about the strategy going forward and making sure that we have the right people to go execute against that strategy as we evolve into a billion-dollar plus organization.
Rough fact, and it won't be many years from now until you are over a billion-dollar organization. And Tyler, you know, you've studied this industry. There's not a lot of software businesses that ever get to be a billion-dollar business. So, congratulations on everything you and the team have built to date. And, unfortunately, we're out of time, but I do appreciate you spending some time here with us today to tell us about the Freshworks story.
Brian, thanks for having us. It's really a pleasure doing this again with you. Hope you enjoy the rest of your summer, too.
You too. Take care.
Bye, man.
Thank you. Bye.