Freshworks Inc beat quarterly revenue estimates on Tuesday and posted its first adjusted operating profit as more businesses sought its lower-priced customer engagement software in a tough economy.

Rising interest rates, high inflation and a banking crisis have worsened the global economic outlook in recent months, forcing businesses to slash their technology budgets.

Freshworks, whose products compete with Salesforce Inc and Zendesk, told Reuters that the downturn was driving more companies to its more affordable offerings.

The San Mateo, California-based company's revenue rose 20% in the first quarter ended March to $137.7 million, compared with analysts' estimates of $134.3 million, according to Refinitiv.

It posted an adjusted operating profit of $3.9 million. Net loss narrowed to $42.7 million, from $49.1 million a year earlier.

The company forecast second-quarter revenue largely in line with estimates, while its forecast for adjusted profit was above estimates.

  - Reuters