Loading...
01/11 16:22
Loading...
Access earnings results, analyst expectations, report, slides, earnings call, and transcript.
The earnings call summary presents a positive outlook with strong revenue growth projections, stable gross margins, and a strategic focus on AI and upmarket expansion. Despite a cautious Q4 guidance, the company's transition to larger accounts and AI-driven solutions shows promising traction. The Q&A section reveals confidence in meeting long-term targets, with AI products enhancing customer retention. The sentiment is further supported by healthy top-of-funnel activity and multiproduct adoption. Overall, the positive elements outweigh the cautious guidance, indicating a likely positive stock price movement.
Total Revenue $317 million, up 26% from the year ago quarter. The increase was supported by success with larger customers and continued improvement in operational efficiency.
Overall Net Dollar Retention (NDR) 111% in Q3, stable year-over-year. This reflects a trailing 4 quarters weighted average calculation.
Gross Margin 90% in Q3, consistent with expectations for the medium to long term to be in the high 80s range.
Research and Development Expense $57.8 million in Q3, representing 18% of revenue, up from 17% in the year ago quarter. The increase is due to continued investment in innovation.
Sales and Marketing Expense $151.8 million in Q3, representing 48% of revenue, down from 52% in the year-ago quarter. This reflects improved operational efficiency.
General and Administrative Expense $27 million in Q3, representing 9% of revenue, consistent with the year-ago quarter.
Operating Income $47.5 million in Q3, up from $32.2 million in the year ago quarter. Operating margin was 15%, reflecting record profitability.
Net Income $61.9 million in Q3 '25, up from $45 million in Q3 '24. This reflects record profitability.
Diluted Net Income Per Share $1.16 in Q3, based on 53.3 million fully diluted shares outstanding. This is a record figure.
Total Employee Headcount 3,018 employees, an increase of 151 employees since Q2. The company expects to grow headcount by approximately 30% in fiscal year '25.
Cash and Cash Equivalents $1.53 billion at the end of Q3, down from $1.59 billion at the end of Q2.
Marketable Securities $211.7 million at the end of Q3, up from $60.1 million at the end of Q2.
Adjusted Free Cash Flow $92.3 million in Q3, with an adjusted free cash flow margin of 29%. This is defined as net cash from operating activities, less cash used for property and equipment and capitalized software costs, plus costs associated with the build-out and expansion of corporate headquarters.
AI-powered monday campaigns product: Rapid adoption since September launch, reinforcing vision of a connected sales and marketing suite.
monday vibe: Rapid adoption with customers creating over 60,000 apps since gradual release in July, built on enterprise-grade infrastructure.
Agent Factory: New AI product introduced to design and manage intelligent agents for automating complex workflows, with flexible consumption-based pricing.
Customer expansion: Robust net additions of $100,000+ and $500,000+ paying customers, reflecting strong go-to-market engine and platform demand.
Elevate user conference: Attendance more than doubled year-over-year, generating record engagement and strong pipeline for 2026.
Revenue growth: Total revenue of $317 million in Q3, up 26% year-over-year.
Profitability: Largest ever non-GAAP operating profit of $47.5 million in Q3, with operating margin of 15%.
Operational efficiency: Sales and marketing expenses reduced to 48% of revenue from 52% year-over-year.
Multiproduct strategy: New products now account for over 10% of total ARR, surpassing 2025 goal ahead of schedule.
AI credit system: New system to be rolled out in Q4, providing transparent and intuitive scaling of AI usage.
Longer Sales Cycles: The company's shift towards mid-funnel channels to target larger opportunities comes with longer sales cycles, which could delay revenue realization and impact cash flow.
Economic Uncertainties: The company operates in a competitive and uncertain economic environment, which could affect customer spending and demand for its products.
AI Credit System Implementation: The rollout of a new AI credit system in Q4, while shaped by customer feedback, could face adoption challenges or customer dissatisfaction, impacting AI-related revenue.
Headcount Growth: The planned 30% headcount growth in fiscal year 2025 could increase operational costs and strain resources if not managed efficiently.
Dependence on Larger Customers: The company's focus on larger customers and accounts over $50,000 in ARR increases reliance on a smaller customer base, which could amplify risks if these customers reduce spending or churn.
Regulatory and Compliance Risks: As the company expands its AI-powered solutions and multiproduct offerings, it may face increased regulatory scrutiny and compliance challenges.
Revenue Projections: For Q4 FY 2025, revenue is expected to be in the range of $328 million to $330 million, representing growth of 22% to 23% year-over-year. For the full year FY 2025, revenue is projected to be in the range of $1.226 billion to $1.228 billion, representing growth of approximately 26% year-over-year.
Operating Income and Margin: For Q4 FY 2025, non-GAAP operating income is expected to be $36 million to $38 million, with an operating margin of 11% to 12%. For the full year FY 2025, non-GAAP operating income is projected to be $167 million to $169 million, with an operating margin of approximately 14%.
Adjusted Free Cash Flow: For the full year FY 2025, adjusted free cash flow is expected to be $330 million to $334 million, with an adjusted free cash flow margin of approximately 27%.
Gross Margin: In the medium to long term, gross margin is expected to remain in the high 80% range.
Headcount Growth: Headcount is expected to grow by approximately 30% in fiscal year 2025.
AI and Product Development: The company plans to roll out a new AI credit system in Q4 FY 2025 to simplify AI usage and measure its impact. Additionally, the new AI-powered monday campaigns product and Agent Factory are expected to drive adoption and enhance operational efficiency.
The selected topic was not discussed during the call.
The earnings call summary presents a positive outlook with strong revenue growth projections, stable gross margins, and a strategic focus on AI and upmarket expansion. Despite a cautious Q4 guidance, the company's transition to larger accounts and AI-driven solutions shows promising traction. The Q&A section reveals confidence in meeting long-term targets, with AI products enhancing customer retention. The sentiment is further supported by healthy top-of-funnel activity and multiproduct adoption. Overall, the positive elements outweigh the cautious guidance, indicating a likely positive stock price movement.
The earnings call summary reflects solid financial performance with 30% YoY revenue growth and optimistic future guidance. Product innovation and enterprise growth are strong, and strategic leadership changes are expected to drive expansion. The Q&A section reveals management's proactive approach to challenges, like Google algorithm changes, and a focus on high-value customers. Despite some unclear responses, the overall sentiment is positive, especially with AI-driven growth and a robust shareholder return plan. The absence of negative factors like margin decline or guidance cuts supports a positive outlook.
The earnings call summary reflects strong financial performance, with a 30% YoY revenue increase and a robust net income rise. Despite macroeconomic uncertainties, the company maintains a positive outlook with a 12% operating margin guidance and a high gross margin. The Q&A session highlighted successful product strategies and strong customer net adds, although there were some concerns about macroeconomic impacts. The lack of a share repurchase program is a slight negative, but overall, the financial health and strategic growth initiatives suggest a positive sentiment, likely leading to a stock price increase of 2% to 8%.
All transcripts are sourced directly from the official live webcast or the company’s official investor relations website. We use the exact words spoken during the call with no paraphrasing of the core discussion.
Full verbatim transcripts are typically published within 4–12 hours after the call ends. Same-day availability is guaranteed for all S&P 500 and most mid-cap companies.
No material content is ever changed or summarized in the “Full Transcript” section. We only correct obvious spoken typos (e.g., “um”, “ah”, repeated 10 times”, or clear misspoken ticker symbols) and add speaker names/titles for readability. Every substantive sentence remains 100% as spoken.
When audio quality is poor or multiple speakers talk over each other, we mark the section instead of guessing. This ensures complete accuracy rather than introducing potential errors.
They are generated by a specialized financial-language model trained exclusively on 15+ years of earnings transcripts. The model extracts financial figures, guidance, and tone with 97%+ accuracy and is regularly validated against human analysts. The full raw transcript always remains available for verification.
