Shares of Freshworks Inc. (FRSH) soared over 9% in after-hours trading on Monday, following the software company's better-than-expected third-quarter results and raised full-year guidance. The strong performance was driven by robust demand for Freshworks' AI-powered products that help businesses streamline IT services and enhance customer support.

For the third quarter ended September 30, Freshworks reported revenue of $186.6 million, up 22% year-over-year, surpassing analysts' estimates of $181.6 million. The company's adjusted earnings per share of $0.11 also exceeded expectations of $0.08. Freshworks credited the impressive results to growing adoption of its AI-driven solutions like Freshservice for IT service management and Freshdesk for customer service.

Encouraged by the strong momentum, Freshworks raised its full-year 2024 revenue guidance to a range of $713.6 million to $716.6 million, up from its previous forecast of $707 million to $713 million. The company also lifted its annual adjusted profit per share outlook to 38 cents to 39 cents, higher than the prior guidance of 32 cents to 34 cents.