Monday.Com Is Well Positioned Backed By CRM, Marketer, Enterprise Platform And Marketplace Ramp Up: Analysts

Needham analyst Scott Berg reiterated Monday.Com Ltd MNDY with a Buy and a $230 price target. MNDY reported excellent 4Q22 results, highlighted by another 50%+ revenue growth quarter and its first-ever, Non-GAAP operating profit. 

Sales metrics remained positive but decelerated again Q/Q as the analyst expected due to a slowing hiring macro driving fewer existing customer seat additions. 

Sales for MNDY's new CRM solution were above expectations, and its release to existing customers this summer could be an added ARPU growth vector not in current guidance. 

Initial FY23 revenue guidance suggests a vital step down in growth. Still, the analyst views this initial look as more of a conservative view based on the unknown macro picture than anything specific to MNDY or the CWM space. 

Initial guidance for an FY23 operating loss looks conservative, and the analyst said he would not be surprised to see the company cross the profitability chasm in 2H.

Credit Suisse analyst Fred Lee maintained an Outperform and raised the price target from $140 to $170. MNDY delivered yet another solid quarter, showcasing its platform approach's underlying strength and customer acceptance. 

The company's execution and pace of innovation continue to impress, with Monday CRM gaining significant traction and the recently announced Monday DB, which aims to upgrade the core platform infrastructure and drive enterprise adoption.

Keybanc analyst Jason Celino maintained an Overweight and raised the price target from $156 to $180. While enterprise NRR is downtick due to slower seat expansion in the up-market, management commentary suggests the top-of-funnel activity remains robust. 

Additionally, Monday.com looks to begin targeting its install base for Sales CRM (and other Work OS products) at the end of 1H, which the analyst saw as a catalyst.

Citigroup analyst Steven Enders maintained a Buy and raised the price target from $132 to $169.

Despite some concerns of NDR from macro, the analyst saw MNDY well positioned with newer initiatives like CRM and Marketer, enterprise platform scale, and marketplace and partners ramping.

Price Action: MNDY shares traded higher by 10.50% at $160.75 on the last check Monday.