Monday.com MNDY Strong Results and Strong Performance

Monday.com MNDY soared 26% on Monday, boosted by a strong earnings report that beat analysts estimates.

Here are the Fourth Quarter Fiscal 2024 Financial Highlights for Monday.com

Fiscal Year 2024 Financial Highlights:

• Revenue was $268.0 million, an increase of 32% year-over-year.
• GAAP operating income was $9.6 million compared to a loss of $1.1 million in the fourth quarter of 2023; GAAP operating margin was 4% compared to negative 1% in the fourth quarter of 2023.
• Non-GAAP operating income was $40.3 million compared to $21.2 million in the fourth quarter of 2023; non-GAAP operating margin was 15%, compared to 10% in the fourth quarter of 2023.
• GAAP basic and diluted net income per share was $0.45 and $0.43, respectively, compared to GAAP basic and diluted net income per share of $0.25 and $0.24, respectively, in the fourth quarter of 2023; non-GAAP basic and diluted net income per share was $1.13 and $1.08, respectively, compared to non-GAAP basic and diluted net income per share of $0.69 and $0.65, respectively, in the fourth quarter of 2023.
• Net cash provided by operating activities was $76.7 million, with $72.7 million of free cash flow, compared to net cash provided by operating activities of $58.5 million and $55.4 million of free cash flow in the fourth quarter of 2023.

Monday.com Fiscal Year 2024 Financial Highlights:

• Revenue was $972.0 million, an increase of 33% year-over-year.
• GAAP operating loss was $21.0 million compared to a loss of $38.6 million in fiscal 2023; GAAP operating margin was negative 2% compared to negative 5% in fiscal 2023.
• Non-GAAP operating income was $132.4 million compared to $61.6 million in fiscal 2023; non-GAAP operating margin was 14%, compared to 8% in fiscal 2023.
• GAAP basic and diluted net income per share was $0.65 and $0.62, respectively, compared to GAAP basic and diluted net loss per share of $0.04 in fiscal 2023; non-GAAP basic and diluted net income per share was $3.67 and $3.50, respectively, compared to non-GAAP basic and diluted net income per share of $1.96 and $1.85, respectively, in fiscal 2023.
• Net cash provided by operating activities was $311.1 million, with $295.8 million of free cash flow, compared to net cash provided by operating activities of $215.4 million and $204.9 million of free cash flow in fiscal 2023.

Business Highlights:

• Net dollar retention rate was 112%.
• Net dollar retention rate for customers with more than 10 users was 115%.
• Net dollar retention rate for customers with more than $50,000 in ARR was 115%.
• Net dollar retention rate for customers with more than $100,000 in ARR was 116%.
• The number of paid customers with more than 10 users was 59,214, up 10% from 53,688 as of December 31, 2023.
• The number of paid customers with more than $50,000 in ARR was 3,201, up 39% from 2,295 as of December 31, 2023.
• The number of paid customers with more than $100,000 in ARR was 1,207, up 45% from 833 as of December 31, 2023.
• monday service is now generally available to all customers, with strong early growth driven by cross-sell to existing customers and multi-product deals.
• Announced the Digital Workforce, a team of AI Agents designed to work around the clock, handling tasks such as analyzing project risks, unlocking stuck sales deals, and identifying recurring customer service issues.

For the first quarter of fiscal year 2025, monday.com now expects:

• Total revenue of $274 million to $276 million, representing year-over-year growth of 26% to 27%.
• Non-GAAP operating income of $25 million to $27 million and operating margin of 9% to 10%.

For the full year 2025, monday.com now expects:

• Total revenue of $1,208 million to $1,221 million, representing year-over-year growth of 24% to 26%, and assumes a negative FX impact of 100 to 200 basis points.
• Non-GAAP operating income of $134 million to $142 million and operating margin of 11% to 12%.
• Free cash flow of $300 million to $308 million and free cash flow margin of approximately 25%.

Comments from Monday.com, Eran Zinman — Co-Chief Executive Officer:

We’re excited to announce that Monday Service is now officially available to our customers. Monday Service is an AI-first enterprise service management solution that helps service teams deliver exceptional support, faster through smart AI-powered automation. Initial customer demand has been very strong.

With Monday Service already showing the highest cross-sell of our new products and the highest ACV of the entire monday product suite. As Roy mentioned, we have been very busy on the AI front. To make AI more accessible, we’ve introduced a flexible consumption-based pricing model for AI blocks, offering a baseline level of free usage for all clients. For organizations with larger AI needs, additional usage can be purchased at different levels.

In 2025, our AI strategy will be focused on three main areas: AI blocks, product power-ups, and digital workforce. AI blocks will be expanded to provide more advanced ways to automate tasks. Through product power-ups, AI will be deeply integrated into each product to address specific user needs. And finally, the digital workforce will include AI agents like monday expert, deal facilitator, and service analyzer, which will offer actionable insights and streamline processes for users.

Looking ahead to 2025, we have a lot to be excited about. Our momentum is stronger than ever, positioning us for continued growth and innovation. The success this year would not have been possible without education and talent of the money.com team. In 2024, we increased our workforce by 35%, bringing our total employee count to over 2,500, and expect strong hiring in 2025.

As we move forward, we remain focused on investing in our people, delivering exceptional value to our customers, and driving sustainable long-term growth for our shareholders.

Monday.com stock closed 26% higher at $326.40 close to 12 month highs of $342.64.