Monday.com Sees Surge in High-Value Customers, Driving Impressive First Quarter Earnings

Monday.com Ltd MNDY reported fiscal first-quarter 2024 revenue growth of 34% Y/Y to $216.9 million, beating the analyst consensus estimate of $210.4 million. 

The project management software company's adjusted EPS of $0.61 beat the analyst consensus estimate of $0.40. The stock price gained after the results.

The net dollar retention rate was 110%, with the net dollar retention rate for customers with more than ten users being 114%.

The number of paid customers with over $50,000 in annual recurring revenue (ARR) rose 48% Y/Y to 2,491. The adjusted operating margin was 10% versus (0)% prior year.

In the quarter, MNDY generated net cash from operating activities of $91.96 million, with $89.89 million of free cash flow, compared to $42.73 million and $38.68 million, respectively, a year ago. MNDY held $1.22 billion in cash and equivalents as of March-end.

“Our Q1 results mark an exceptional start to the year, with strong demand for our products across all ends of the market,” said monday.com co-founders and co-CEOs, Roy Mann and Eran Zinman. 

Outlook: Monday.com expects second-quarter revenue of $226 million – $230 million (versus the consensus of $225.1 million) and adjusted operating margin of 8% – 9%.

Monday.com expects 2024 revenue guidance of $942 million – $948 million (prior $926 million – $932 million) against the consensus of $935.28 million, and an adjusted operating margin of 8% – 9% (prior 6% – 7%).

Monday.Com stock gained over 19% in the last 12 months. Investors can gain exposure to the stock via SPDR S&P Kensho New Economies Composite ETF KOMP and IShares Core MSCI Total International Stock ETF IXUS.

Price Action: MNDY shares are trading higher by 19.9% at $217.96 premarket at the last check Wednesday.