Shares of Freshworks Inc. (FRSH) surged over 5% on Wednesday, propelled by the company's upbeat quarterly results and raised financial forecasts for the year. The software firm attributed the strong performance to growing demand for its AI-driven products that help businesses manage their IT services and customer support.

Freshworks, which offers solutions like Freshservice for IT service management and Freshdesk for customer service, reported a 22% increase in third-quarter revenue to $186.6 million, exceeding analysts' estimates. The company's adjusted profit per share of 11 cents also surpassed expectations.

Buoyed by the strong results, Freshworks raised its annual 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 forecast to 38 cents to 39 cents, higher than its prior guidance of 32 cents to 34 cents.