mondaycom Reports Robust Third Quarter Financial Results for Fiscal 2024

authorIntellectia.AI2024-11-11
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MNDY.O
Illustration by Intellectia.AI

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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