:Freshworks raised its annual revenue and profit forecast on Wednesday after upbeat third-quarter results, helped by demand for its AI-based products, sending its shares up more than 15 percent in trading prolonged.

The California-based company announced it would lay off 13 percent of its workforce, or 660 employees, globally in an effort to streamline its operations. It expects to record between $11 million and $13 million in restructuring charges in the fourth quarter.

Freshworks expects the restructuring plan to be completed by the end of the financial year ending December 31.

Businesses are digitizing their operations with AI tools, driving demand for companies like Freshworks.

The company offers tools such as Freshservice, an IT service management software that helps businesses onboard and manage employees, and Freshdesk, a customer service tool designed to provide quick solutions to customer issues.

The company has more than 68,000 customers, including Databricks, American Express, Nucor and Sony. It competes with companies such as Salesforce and ServiceNow.

Freshworks now expects its annual revenue to be between $713.6 million and $716.6 million, up from its prior expectations of $707 million to $713 million.

The company also raised its adjusted annual earnings per share forecast to a range of 38 to 39 cents, up from its previous forecast of 32 to 34 cents.

The software company’s revenue rose 22 percent to $186.6 million for the third quarter ended Sept. 30, compared with analysts’ average estimate of $181.6 million, data shows compiled by LSEG.

Adjusted earnings per share of 11 cents for the third quarter also beat estimates by 8 cents.

Freshworks expects fourth-quarter revenue to be between $187.8 million and $190.8 million, the midpoint of which is in line with estimates.