Monday.com Ltd MNDY reported fiscal third-quarter 2024 revenue growth of 33% Y/Y to $251.0 million, beating the analyst consensus estimate of $246.1 million.
The project management software company's adjusted EPS of $0.85 beat the analyst consensus estimate of $0.63, but the stock price plunged after the results.
The net dollar retention rate was 111%, and it was 114% for customers with more than ten users.
The number of paid customers with over $50,000 in annual recurring revenue (ARR) rose 40% year over year to 2,907. The adjusted operating margin was firm year-on-year at 13%.
In the quarter, Monday.com generated an operating cash flow of $86.6 million, with $82.4 million of free cash flow, compared to $66.6 million and $64.9 million, respectively, a year ago. MNDY held $1.4 billion in cash and equivalents as of September.
Monday.com's co-founders and co-CEOs, Roy Mann and Eran Zinman, attributed the strong third-quarter performance to effective execution and ongoing enhancements to the platform, emphasizing their excitement for future growth after surpassing $1 billion in Annual Recurring Revenue (ARR).
CFO Eliran Glazer highlighted solid revenue growth, improved profitability, and better retention trends, especially as the company expands its focus on larger customers. He expressed confidence in sustaining this momentum through the end of the year and into fiscal 2025, aiming for continued scalable growth.
Outlook: Monday.com expects fourth-quarter revenue of $260 million—$262 million (versus the consensus of $246.1 million) and an adjusted operating margin of 11%–12%.
Monday.com raised 2024 revenue guidance to $964 million–$966 million (prior $956 million–$961 million) against the consensus of $960.2 million and an adjusted operating margin of 12%–13% (prior 10%—11%).
Last week, Wells Fargo analyst Michael Berg maintained Monday.Com with an Overweight rating and raised the price target from $315 to $330.
Monday.Com stock gained over 82% year-to-date.
Price Action: MNDY stock is down 13.10% at $282.00 premarket at the last check Monday.
Also Read:
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Comments
Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.
