monday.com Earnings
monday.com Inc. (NASDAQ: MNDY) has unveiled its financial performance for the fourth quarter and fiscal year 2024, displaying substantial growth and operational achievements. By the end of December 31, 2024, the company marked notable increases in revenue and profitability, achieving new milestones and strengthening its foothold in the organizational work management space.
Financial Overview
| Metric | Q4 2024 | Q4 2023 | YoY Change | FY 2024 | FY 2023 | YoY Change |
|---|---|---|---|---|---|---|
| Revenue | $268.0 | N/A | 32% | $972.0 | N/A | 33% |
| GAAP Operating Income (Loss) | $9.6 | ($1.1) | N/A | ($21.0) | ($38.6) | N/A |
| Non-GAAP Operating Income | $40.3 | $21.2 | 90% | $132.4 | $61.6 | 115% |
| GAAP Net Income per Share | $0.45 | $0.25 | 80% | $0.65 | ($0.04) | N/A |
| Non-GAAP Net Income per Share | $1.13 | $0.69 | 64% | $3.67 | $1.96 | 87% |
| Free Cash Flow | $72.7 | $55.4 | 31% | $295.8 | $204.9 | 44% |
These figures point to a well-executed financial strategy, as monday.com continues to expand its presence and effectively manage operational costs, thereby enhancing overall profitability.
monday.com Results
The significant growth in revenue and profitability, evidenced by a 33% annual increase in revenue, indicates a successful year for monday.com. The transformation in GAAP operating income from a loss of $38.6 million in FY 2023 to a lesser $21.0 million loss in FY 2024 shows a steady improvement in financial health. Furthermore, non-GAAP metrics illustrate even stronger performance with a 115% increase in operating income.
This momentum underscores monday.com's strategy of prioritizing core business improvements and customer expansion. Earnings per share, both GAAP and non-GAAP, also rose markedly, signifying enhanced shareholder value.
Revenue Breakdown
| Segment | Annual Growth (% Change) | Commentary |
|---|---|---|
| Total Revenue | 33% | Robust growth fueled by product innovations and market penetration. |
| Customers > $50K ARR | 39% | Increase indicative of successful upselling and expansion. |
| Customers > $100K ARR | 45% | Demonstrates strong engagement with high-value clients. |
The significant growth in high-value customer segments is a clear indicator of monday.com's service depth and customer trust. Their focus on enhancing the customer experience through tailored product solutions contributed significantly to the company's ability to increase revenue from customers generating more than $50K in annual recurring revenue by 39%, and over $100K by 45%.
Key Developments
- The company's Net Dollar Retention Rate stands at 112%, highlighting customer loyalty and continued expansion within existing accounts.
- Expanded global service availability to maximize cross-selling opportunities and aid customer retention.
- Launched the "Digital Workforce" feature, integrating Artificial Intelligence to provide advanced operational support for clients.
- Achieved over $1 billion in Annual Recurring Revenue (ARR), marking a major milestone for the company.
These developments underline the strategic enhancements monday.com has made, fostering both technological growth and global market penetration, essential for sustainability in a competitive market.
Comments from Company Officers
Co-CEOs Roy Mann and Eran Zinman expressed their satisfaction with monday.com's success, attributing it to innovation in product offerings and effective market execution. CFO Eliran Glazer commended the company's strong financial positioning going into 2025, emphasizing their potential to harness newfound growth opportunities.
monday.com Stock Forecast
Given monday.com's strong operational performance and strategic initiatives, the company's stock is positioned with potential high and low projections. The market capitalization stands at approximately $11.56 billion, with a last stock price of $258.24, reflecting strong investor confidence. Despite an approximate 2.67% decline subsequent to the earnings announcement, impending technological advancements, and fiscal health could elevate the stock price within a range of $240 to $280 in the coming year, subject to market conditions and continuous operational success.
monday.com's achievements in driving revenue growth and strengthening customer relationships prepare the ground for further enhancements in fiscal 2025, bringing a promising outlook to investors and stakeholders as they continue expanding their technological and market presence.
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