We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
monday.com (MNDY - Free Report) reported fourth-quarter 2024 non-GAAP earnings per share of $1.08, which beat the Zacks Consensus Estimate by 38.46% and increased 66.1% from the year-ago quarter.
Find the latest EPS estimates and surprises on Zacks Earnings Calendar.
The company’s net revenues of $268 million rose 32% year over year and beat the Zacks Consensus Estimate by 2.62%.
In the fourth quarter, MNDY had 1,207 customers with an annual run rate (ARR) of $100,000 or more, which increased 45% year over year. The net dollar retention rate for these customers was 116%.
As of Dec. 31, 2024, the number of paid customers with more than 10 users was 59,214, up 10% from 53,688 as of Dec. 31, 2023. Additionally, the number of paid customers with more than $50,000 in ARR was 3,201, up 39% from 2,295 as of Dec. 31, 2023.
monday.com’s net dollar retention was 112% as customers increased their usage and adopted more products.
Operating Details
MNDY’s adjusted gross margin decreased 100 basis points (bps) on a year-over-year basis to 89%.
Research & development expenses rose 44.4% on a year-over-year basis to $48 million. Research & development, as a percentage of revenues, increased 150 bps to 17.9%.
Sales and marketing expenses rose 16.2% year over year to $127.8 million. Sales and marketing expenses, as a percentage of revenues, decreased 660 bps to 47.7%.
General & administrative expenses increased 33% year over year, reaching $23 million in the reported quarter. General & administrative expenses, as a percentage of revenues, remained stable at 8.6%.
monday.com reported a non-GAAP operating income of $40.3 million compared with $21.2 million in the year-ago quarter.
Balance Sheet & Cash Flow
As of Dec. 31, 2024, MNDY had cash, cash equivalents, restricted cash and marketable securities of $1.41 billion compared with $1.34 billion as of Sept. 30, 2024.
Operating cash flow was $76.7 million in the reported quarter, down from $86.6 million reported in the previous quarter.
Free cash flow during the quarter was $72.7 million compared with $82.4 million in the previous quarter.
Guidance
For the first quarter of 2025, MNDY anticipates revenues between $274 million and $276 million. Non-GAAP operating income is expected in the band of $25-$27 million.
For 2025, MNDY expects revenues between $1,208 million and $1,221 million. Non-GAAP operating income is expected in the range of $134-$142 million. Free cash flow is expected in the range of $300-$308 million.
Zacks Rank & Stocks to Consider
monday.com currently carries a Zacks Rank #4 (Sell).
Image: Bigstock
monday.com Q4 Earnings Surpass Estimates, Revenues Rise Y/Y
monday.com (MNDY - Free Report) reported fourth-quarter 2024 non-GAAP earnings per share of $1.08, which beat the Zacks Consensus Estimate by 38.46% and increased 66.1% from the year-ago quarter.
Find the latest EPS estimates and surprises on Zacks Earnings Calendar.
The company’s net revenues of $268 million rose 32% year over year and beat the Zacks Consensus Estimate by 2.62%.
monday.com Ltd. Price, Consensus and EPS Surprise
monday.com Ltd. price-consensus-eps-surprise-chart | monday.com Ltd. Quote
Quarter Details
In the fourth quarter, MNDY had 1,207 customers with an annual run rate (ARR) of $100,000 or more, which increased 45% year over year. The net dollar retention rate for these customers was 116%.
As of Dec. 31, 2024, the number of paid customers with more than 10 users was 59,214, up 10% from 53,688 as of Dec. 31, 2023. Additionally, the number of paid customers with more than $50,000 in ARR was 3,201, up 39% from 2,295 as of Dec. 31, 2023.
monday.com’s net dollar retention was 112% as customers increased their usage and adopted more products.
Operating Details
MNDY’s adjusted gross margin decreased 100 basis points (bps) on a year-over-year basis to 89%.
Research & development expenses rose 44.4% on a year-over-year basis to $48 million. Research & development, as a percentage of revenues, increased 150 bps to 17.9%.
Sales and marketing expenses rose 16.2% year over year to $127.8 million. Sales and marketing expenses, as a percentage of revenues, decreased 660 bps to 47.7%.
General & administrative expenses increased 33% year over year, reaching $23 million in the reported quarter. General & administrative expenses, as a percentage of revenues, remained stable at 8.6%.
monday.com reported a non-GAAP operating income of $40.3 million compared with $21.2 million in the year-ago quarter.
Balance Sheet & Cash Flow
As of Dec. 31, 2024, MNDY had cash, cash equivalents, restricted cash and marketable securities of $1.41 billion compared with $1.34 billion as of Sept. 30, 2024.
Operating cash flow was $76.7 million in the reported quarter, down from $86.6 million reported in the previous quarter.
Free cash flow during the quarter was $72.7 million compared with $82.4 million in the previous quarter.
Guidance
For the first quarter of 2025, MNDY anticipates revenues between $274 million and $276 million. Non-GAAP operating income is expected in the band of $25-$27 million.
For 2025, MNDY expects revenues between $1,208 million and $1,221 million. Non-GAAP operating income is expected in the range of $134-$142 million. Free cash flow is expected in the range of $300-$308 million.
Zacks Rank & Stocks to Consider
monday.com currently carries a Zacks Rank #4 (Sell).
Akamai Technologies (AKAM - Free Report) , Autohome (ATHM - Free Report) and Bandwidth (BAND - Free Report) are some better-ranked stocks in the broader Zacks Computer and Technology sector, each carrying a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Akamai Technologies, Autohome and Bandwidth are scheduled to report their respective fourth-quarter 2024 results on Feb. 20.