Monday.com Beats Q4 Earnings Estimates, Boasts 32% Revenue Growth: CEO Calls AI A Game-Changer

Monday.com Ltd MNDY reported fiscal fourth-quarter 2024 revenue growth of 32% year-on-year to $267.98 million, beating the analyst consensus estimate of $261.37 million. 

The project management software company’s adjusted EPS of $1.08 beat the analyst consensus estimate of $0.79. The stock price climbed after the results.

Also Read: Cboe Q4 Earnings: Options Boom, Global Growth, Market Expansion Drive Gains

The net dollar retention rate was 112% and 115% for customers with more than ten users.

The number of paid customers with over $50,000 in annual recurring revenue (ARR) rose 39% year over year to 3,201. The adjusted operating margin increased 500 bps to 15%.

In the quarter, Monday.com generated:

• Operating cash flow of $76.7 million
• $72.7 million of free cash flow, compared to $58.5 million and $55.4 million, respectively, a year ago.
• $1.46 billion in cash and equivalents as of Dec. 31, 2024.

Roy Mann and Eran Zinman, co-founders and co-CEOs, flagged the expansion of its product suite with Monday service, which is already seeing rapid adoption from both existing and new customers.

They also highlighted that the company doubled down on its AI efforts, focusing on AI Blocks, Product Power-ups, and a new Digital Workforce of AI Agents for 2025. They expect AI to be a game-changer for their customers, giving them the ability to transform their workflows and scale faster than ever before.

Outlook: Monday.com expects fiscal first-quarter 2025 revenue of $274 million—$274.32 million (versus the consensus of $246.1 million) and an adjusted operating margin of 9%–10%.

Monday.com expects 2025 revenue of $1.208 billion—$1.221 billion, against the consensus of $1.210 billion, and an adjusted operating margin of 11%–12%.

Monday.com stock surged over 57% in the last 12 months. At least four Wall Street firms reduced their price target on the stock in 2025. However, Citigroup upgraded its rating from Neutral to Buy, and Cantor Fitzgerald initiated coverage on the stock with an Overweight.

Price Action: Monday.com stock is up 30.4% at $334.76 at the last check Monday.

Also Read:

• Thomson Reuters Q4 Earnings: Beats Estimates, Boosts Dividend 10%, CEO Highlights Strategic Growth

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