Freshworks vs SAP: Revenue, Profit and Business Model
Freshworks had $838.8M of annual revenue in FY2025 and $183.7M of net income. SAP had ~$41.6B of annual revenue in FY2025 and ~$8.1B of net income.
Latest financial snapshot
Freshworks
- Latest annual revenue
- $838.8M (FY2025)
- Net income
- $183.7M
- Net margin
- 21.9%
- Revenue growth
- +30.2% a year, FY2019–FY2025
SAP
- Latest annual revenue
- ~$41.6B (FY2025)
- Net income
- ~$8.1B
- Net margin
- 19.5%
- Revenue growth
- +5.8% a year, FY2016–FY2025
Financial summary
Freshworks
Freshworks grew revenue from $172.4 million in 2019 to $838.8 million in 2025. Losses peaked at a $232 million net loss in 2022, then narrowed as the company cut costs and slowed hiring. In 2025 it posted GAAP operating income of $13.2 million (versus a $138.6 million loss in 2024), non-GAAP operating income of $178.0 million, and $242.4 million in operating cash flow; GAAP net income of about $184 million was boosted by a fourth-quarter tax benefit. Cash and marketable securities were $843.7 million at year-end 2025. In Q2 2026 revenue rose 16% to $237.4 million with a 24% non-GAAP operating margin. Freshworks Inc. is a major SaaS company providing customer and employee engagement solutions, maintaining a market valuation typically around $4 billion to $5 billion.
SAP
SAP has spent most of the 2020s turning license-and-maintenance revenue into cloud subscriptions. The shift hurt margins early on: in October 2020 SAP cut its outlook and pushed back its margin targets, and its shares dropped about 22% in a day. The model has since matured. Cloud revenue rose from ~$9.15 billion (EUR 8.1 billion) in 2020 to ~$23.7 billion (EUR 21.0 billion) in 2025, total revenue reached ~$41.6 billion (EUR 36.8 billion), and IFRS profit after tax attributable to owners was ~$8.14 billion (EUR 7.2 billion). For 2026 SAP guided to ~$29.2 billion (EUR 25.8 billion) to ~$29.6 billion (EUR 26.2 billion) of cloud revenue and about $11.3 billion (EUR 10 billion) of free cash flow. SAP is Europe's largest software company, sustaining a robust market valuation generally over $200 billion through its enterprise resource planning dominance.
Revenue and profit by year
Freshworks
| Year | Revenue | Net income | Margin | Growth | Source |
|---|---|---|---|---|---|
| FY2025 | $838.8M | $183.7M | 21.9% | +16.4% | Source |
| FY2024 | $720.4M | -$95.4M | -13.2% | +20.8% | Source |
| FY2023 | $596.4M | -$137.4M | -23.0% | +19.8% | Source |
| FY2022 | $498M | -$232.1M | -46.6% | +34.2% | Source |
| FY2021 | $371M | -$192M | -51.7% | +48.6% | Source |
| FY2020 | $249.7M | -$57.3M | -22.9% | +44.8% | Source |
| FY2019 | $172.4M | -$31.1M | -18.1% | — | Source |
SAP
| Year | Revenue | Net income | Margin | Growth | Source |
|---|---|---|---|---|---|
| FY2025 | ~$41.6B | ~$8.1B | 19.5% | +7.7% | Source |
| FY2024 | ~$38.6B | ~$3.5B | 9.1% | +9.5% | Source |
| FY2023 | ~$35.3B | ~$6.9B | 19.7% | +5.7% | Source |
| FY2022 | ~$33.4B | ~$2.6B | 7.7% | +9.5% | Source |
| FY2021 | ~$30.5B | ~$5.9B | 19.5% | -1.4% | Source |
| FY2020 | ~$30.9B | ~$5.8B | 18.8% | -0.8% | Source |
| FY2019 | ~$31.1B | ~$3.8B | 12.1% | +11.5% | Source |
| FY2018 | ~$27.9B | ~$4.6B | 16.5% | +5.3% | Source |
| FY2017 | ~$26.5B | ~$4.5B | 17.1% | +6.3% | Source |
| FY2016 | ~$24.9B | ~$4.1B | 16.5% | — | Source |
Where the revenue comes from
Freshworks
- Employee experience
Not formally reported
Freshservice for IT service management, IT asset management through Device42, and service management for HR and facilities.
- Customer experience
Not formally reported
Freshdesk ticketing, Freshchat messaging and Freshsales CRM.
- Freddy AI add-ons
Not formally reported
AI copilot and AI agent features sold on top of the per-agent subscriptions. Total revenue was $838.8 million in 2025.
SAP
- Cloud subscriptions
- Software support
- Software licenses
- Professional services
- Business AI and platform add-ons
Business model and strategy
Freshworks
How it makes money
Freshworks sells subscriptions, mostly priced per agent or per user, across tiered plans (Growth, Pro, Enterprise). Revenue comes from two segments: employee experience (Freshservice for IT service management, IT asset management via the 2024 Device42 acquisition, and service management for HR and facilities) and customer experience (Freshdesk ticketing, Freshchat messaging and Freshsales CRM).
Growth strategy
Under Dennis Woodside, Freshworks narrowed its focus to service software. It pushes Freshservice upmarket into mid-sized and larger enterprises, cross-sells IT asset management, sells Freddy AI add-ons into the installed base, and relies more on partners and resellers. In 2024 it de-emphasized standalone sales and marketing CRM products to concentrate investment on IT and customer service.
Competitive advantage
Freshworks' main advantage is a lower total cost of ownership: Freshservice and Freshdesk are designed to be configured by in-house admins in weeks rather than through multi-month integrator projects common with ServiceNow or Salesforce. A large engineering base in India keeps R&D costs lower than Silicon Valley peers, and a shared platform lets one vendor cover IT, HR and customer support desks.
SAP
How it makes money
SAP earns most of its money from recurring fees. Cloud subscriptions (SaaS, PaaS and a small IaaS business) are now the largest line, led by the Cloud ERP Suite, which produced ~$6.21 billion (EUR 5.5 billion) of Q2 2026's ~$7.12 billion (EUR 6.3 billion) cloud revenue. Software support contracts on older on-premise licenses are the second pillar, but they are shrinking as customers migrate through RISE with SAP.
Growth strategy
SAP's growth strategy has three parts. First, migrate on-premise ERP customers to cloud through RISE with SAP for large enterprises and GROW with SAP for mid-market companies. Second, sell data and AI on top of that core: SAP Business Data Cloud, the Joule assistant and agents, and the Business AI platform. Third, use targeted acquisitions to fill gaps, including WalkMe in 2024 and Dremio and Prior Labs in 2026.
Competitive advantage
SAP's advantage comes from switching costs and process depth. Once a manufacturer or retailer has run finance, supply chain and procurement on SAP for years, its data models, customizations, controls and staff skills are all tied to the platform, and replacing it is a multi-year project.
Questions about Freshworks vs SAP
Which company has higher revenue — Freshworks Inc. or SAP SE?
Freshworks Inc. had $838.8M (FY2025), while SAP SE had ~$41.6B (FY2025). By latest annual revenue, SAP SE is the larger business, with Freshworks Inc. showing a smaller revenue base.
What is the market cap of Freshworks Inc. vs SAP SE?
Freshworks Inc.'s market capitalisation stands at $3.3B, while SAP SE's is $238.9B. SAP SE carries the higher market valuation, reflecting investors' expectations of its future earnings power relative to Freshworks Inc..
How does revenue per employee compare for Freshworks Inc. and SAP SE?
Freshworks Inc. has $210k / employee in revenue per employee, while SAP SE has $371k / employee. Headcounts may use different dates, so the ratio alone does not establish which business operates more efficiently.
How do Freshworks Inc. and SAP SE make money?
Freshworks Inc. and SAP SE generate revenue in fundamentally different ways. Freshworks Inc.: Freshworks sells subscriptions, mostly priced per agent or per user, across tiered plans (Growth, Pro, Enterprise). SAP SE: SAP earns most of its money from recurring fees.
Which company is valued higher relative to revenue — Freshworks Inc. or SAP SE?
On a price-to-sales (P/S) basis, Freshworks Inc. trades at 3.9x P/S and SAP SE at 5.7x P/S. SAP SE commands a higher revenue multiple, typically indicating that investors expect faster growth or higher future margins compared to Freshworks Inc.. A higher multiple is not inherently better — it may also signal that the stock is priced for perfection.
Is Freshworks Inc. bigger than SAP SE?
By last reported revenue, SAP SE (~$41.6B (FY2025)) is the larger company compared to Freshworks Inc. ($838.8M (FY2025)). Revenue scale is one dimension of size — market capitalisation, employee count, and geographic reach are also relevant depending on the context.
Figures come from each company's filings and the sources linked beside them. Amounts reported in another currency are shown in US dollars at an approximate rate and marked with ~. Back to the Freshworks vs SAP overview