monday.com Reports Robust Third Quarter Financial Results for Fiscal 2024
monday.com (NASDAQ: MNDY), a leading work management platform, released its financial results for the third quarter ending September 30, 2024. The company reported significant progress across key financial metrics, highlighted by a 33% year-over-year revenue growth.
Key Financial Metrics:
| Metric | Q3 2024 | Q3 2023 | YoY Change |
|---|---|---|---|
| Total Revenue | $251.0 million | N/A | +33% |
| GAAP Operating Loss | $27.4 million | $2.5 million | Increased |
| GAAP Operating Margin | -11% | -1% | Decreased |
| Non-GAAP Operating Income | $32.2 million | $24.1 million | Improved |
| Non-GAAP Operating Margin | 13% | 13% | Unchanged |
| GAAP Net Loss per Share | -$0.24 | $0.15 | Decreased |
| Non-GAAP Net Income per Share: Basic | $0.90 | $0.68 | Increased |
| Non-GAAP Net Income per Share: Diluted | $0.85 | $0.64 | Increased |
| Net Cash Provided by Operating Activities | $86.6 million | $66.6 million | Improved |
| Free Cash Flow | $82.4 million | $64.9 million | Improved |
Interpretation: monday.com demonstrated strong financial performance in the third quarter, with a notable increase in revenue and improvements in non-GAAP measures. While GAAP operating loss widened, the company's non-GAAP metrics showed sustained profitability, reflecting effective management and operational efficiency.
Operational and Strategic Highlights:
- Net dollar retention rate reached 111%.
- Surpassed $1 billion in annual recurring revenue (ARR).
- The second-largest customer more than doubled seat count to 60,000.
- Leadership changes included the appointment of Adi Dar as COO and the resignation of Yoni Osherov, CRO.
Management Commentary: Co-CEOs Roy Mann and Eran Zinman expressed satisfaction with the quarterly results, highlighting the company's milestone of exceeding $1 billion in ARR. CFO Eliran Glazer accentuated improved profitability and retention trends, projecting confidence in continuing momentum through FY25.
Forward Guidance: For Q4 2024, monday.com expects revenue between $260 million and $262 million. The full-year outlook anticipates revenue between $964 million and $966 million, representing a 32% annual growth.
Stock Price Movement: The stock had an approximate 1.8% increase following the earnings release, reflecting positive investor sentiment.
The results showcase monday.com's robust growth trajectory and strategic focus on expanding its platform capabilities, positioning it favorably for sustained performance in a competitive market.
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