Latest news with #EranZinman
Forbes
2 days ago
- Business
- Forbes
Trying To Help Employees Like Mondays Again
Free coffee, breakfast and lunch are among the perks for London staff. London Tech Week, which began on Monday, may have got off to a mixed start with the news of a series of bids for U.K.-based companies, but there was a perhaps more reassuring message a couple of weeks previously, when a company providing software that aims to improve workflow management, officially opened its London office. The state-of-the-art building, which is in a prime position in the city's West End and comes with a host of features designed to attract workers back to the office, will serve not just as the base for the company's 300-odd U.K. staff, but as the Tel Aviv-based company's European hub. Pierre Berlin, general manager for Europe, the Middle East and Africa, said he believed London remained 'the best technology hub in Europe,' with an 'incomparable' talent pool. Ben Barnett, newly-appointed regional vice-president of the U.K. and Ireland, added that 'there was no reason to doubt the long-term appeal of the U.K.' Eran Zinman, co-CEO of the company, said in a release marking the opening at the beginning of this month: 'Our London team plays a vital role in global success – from R&D and product to sales, marketing, and customer success. We are investing significantly in scaling our presence here, and that reflects the deep trust we have in the local ecosystem.' This is despite the fact that the bids for Spectris, Alphawave and Oxford Ionics — worth a combined £6 billion ($8.16 billion) — have renewed concerns about Britain's ability to retain and scale up innovative companies. The U.K. and Ireland business at is one of the fastest-growing in the EMEA region, with the headcount in London more than doubling in the past year. The new building is designed to not just provide enough space for the growing workforce to expand into but to support the collaborative culture that sees as central to its success. Alongside quiet rooms and flexible team zones, it includes dedicated spaces for hackathons, customer workshops and staff gatherings. Cultural details specific to London were incorporated throughout, so rooting the office in the city's identity. Cafes provide free coffee and other beverages as well as breakfast and lunch in an effort to encourage socialising and team building. While not taking as tough a stance as many executives in technology and beyond in demanding a return to the office, Barnett clearly sees the benefit in employees working alongside each other. 'Hybrid is perfect,' he said in an interview ahead of the official opening of the building. While acknowledging that some aspects of work, such as administration and planning, were 'better done at home,' he added that there was 'value' to being in the office together. It brought about moments of serendipity that could make a difference — things like being able to help a colleague after overhearing them in a telephone conversation, or bumping into a colleague from another team in the corridor. With sales, for example, there was a rhythm to the work and a camaraderie that came about through sharing successes as they happened. The company expects staff to be in the office three days a week, although some are there more often. For this reason it was 'intentional' about the design and has gone to great trouble and doubtless no small expense to produce a building that does not just appeal to employees but also to customers and partners. This approach is in contrast with some other companies that have stuck to the remote model that became widespread as a result of the restrictions imposed in response to the pandemic. For example, at iplicit, another business software company, chief executive Lyndon Stickley believes not requiring staff to be in an office aids in recruitment. 'Where people live is irrelevant now,' he said in an interview, adding that not having an office to commute to is attractive for many professionals. He conceded that for younger employees being with other people so that they can learn from them 'through osmosis' was really important. But he insisted that the key was to motivate people by making them feel they were turning up for a cause rather than just a job. 'Working remotely is an unbelievable advantage for an agile business,' he said. Like monday, iplicit is growing fast, with 200 employees expected to be on board by the end of the year. Clearly, whatever some well-known leaders of big businesses might have to say, the days of everybody in offices all the time have gone. Indeed, as both and iplicit know all too well from the products and services they offer, where work is done long ceased to be the real issue. It is now all about how it is done.
Yahoo
04-06-2025
- Business
- Yahoo
MNDY Q1 Earnings Call: Revenue Misses Expectations, AI Adoption and Enterprise Expansion Highlighted
Project management software maker (NASDAQ:MNDY) fell short of the market's revenue expectations in Q1 CY2025, but sales rose 30.1% year on year to $282.3 million. Its non-GAAP EPS of $1.10 per share was 56.4% above analysts' consensus estimates. Is now the time to buy MNDY? Find out in our full research report (it's free). Revenue: $282.3 million (30.1% year-on-year growth) Adjusted EPS: $1.10 vs analyst estimates of $0.70 (56.4% beat) Adjusted Operating Income: $40.75 million vs analyst estimates of $26.58 million (14.4% margin, 53.3% beat) Revenue Guidance for Q2 CY2025 is $293 million at the midpoint, roughly in line with what analysts were expecting Operating Margin: 3.5%, up from -2.3% in the same quarter last year Customers: 3,444 customers paying more than $50,000 annually Net Revenue Retention Rate: 115%, in line with the previous quarter Annual Recurring Revenue: $1.13 billion at quarter end, up 30.1% year on year Billings: $326.4 million at quarter end, up 29.2% year on year Market Capitalization: $15.61 billion first quarter results were shaped by increasing enterprise adoption and a surge in customer engagement with its new AI-powered product features. Management highlighted significant momentum across its multi-product suite, emphasizing robust uptake in the work management, CRM, service, and dev offerings. Co-CEO Roy Mann pointed to more than 26 million AI actions performed by users—up over 150% since the end of last year—and noted that these features are helping customers automate workflows and accelerate decision-making. Co-CEO Eran Zinman credited the company's seasonally strong performance marketing efforts for driving customer additions, particularly in the enterprise and mid-market segments. Looking ahead, guidance reflects a cautious stance amid ongoing macroeconomic uncertainty. CFO Eliran Glazer stated that while the company expects continued growth, it is taking a conservative approach to assumptions for net revenue retention and customer expansion due to unpredictable market conditions. Management indicated that AI monetization remains in its early stages and is not yet a significant contributor to the company's 2025 outlook. Co-CEO Eran Zinman emphasized the importance of expanding upmarket and scaling the enterprise segment, supported by strategic investments in sales, R&D, and the onboarding of a new Chief Revenue Officer. Glazer reaffirmed that guidance factors in minor foreign exchange headwinds and limited revenue from new product lines, reflecting a measured view of near-term growth. Management attributed first quarter performance to strong enterprise momentum, rapid AI feature adoption, and disciplined efficiency improvements. The addition of a new Chief Revenue Officer signals a shift toward scaling upmarket and refining go-to-market strategy. AI feature adoption surge: reported rapid uptake of its AI-powered capabilities, with over 26 million AI actions performed by users—more than doubling since year-end. Management cited these tools as driving efficiency and automating complex workflows for customers, although monetization remains in early experimentation. Enterprise segment accelerates: The enterprise business was fastest-growing segment, benefiting from new work management features tailored for large organizations—including AI risk insights and portfolio reporting. Management expects the appointment of Casey George as Chief Revenue Officer to further strengthen this trajectory. Performance marketing impact: Seasonally high performance marketing spend in Q1 led to elevated customer additions, particularly for monday dev and service products. Management noted that such investments are typically front-loaded in the year, aligning with observed customer acquisition patterns. Product suite expansion: New functionality across the work management, dev, service, and CRM offerings contributed to broader adoption. While CRM continues to find traction in SMB and mid-market, monday service is seeing increasing enterprise penetration. Stable geographic demand: Demand remained consistent across North America and other regions, with no significant changes in competitive win rates or customer buying behavior. Management did note ongoing stabilization in European growth, with North America maintaining stronger momentum. outlook for the coming quarters is shaped by continued enterprise expansion, measured AI monetization, and conservative planning amid macroeconomic uncertainty. Enterprise upmarket strategy: Management is prioritizing investments in sales teams and leadership, particularly in enterprise-focused roles, to drive further penetration among large customers. The hiring of a seasoned Chief Revenue Officer is intended to accelerate upmarket momentum and improve go-to-market efficiency. AI monetization and product innovation: While customer usage of AI features is expanding rapidly, management stated that revenue from these tools is still minimal and in the early stages of experimentation. The company will continue to invest in AI development and gradually roll out monetization strategies as use cases mature. Macroeconomic caution and retention: CFO Eliran Glazer highlighted that guidance assumes conservative net revenue retention and customer growth due to persistent macro uncertainty. Management is closely monitoring potential changes in deal cycles, customer expansion rates, and foreign exchange trends, all of which could influence performance. In the next few quarters, the StockStory team will be closely watching (1) the pace of enterprise customer growth and the impact of the new Chief Revenue Officer, (2) progress in AI feature monetization and broader adoption across product lines, and (3) stabilization in geographic performance, particularly in Europe. Continued execution on hiring and efficiency improvements will also be critical for sustaining growth. currently trades at a forward price-to-sales ratio of 12.6×. At this valuation, is it a buy or sell post earnings? Find out in our full research report (it's free). Market indices reached historic highs following Donald Trump's presidential victory in November 2024, but the outlook for 2025 is clouded by new trade policies that could impact business confidence and growth. While this has caused many investors to adopt a "fearful" wait-and-see approach, we're leaning into our best ideas that can grow regardless of the political or macroeconomic climate. Take advantage of Mr. Market by checking out our Top 6 Stocks for this week. This is a curated list of our High Quality stocks that have generated a market-beating return of 183% over the last five years (as of March 31st 2025). Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-small-cap company Exlservice (+354% five-year return). Find your next big winner with StockStory today. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Techday NZ
16-05-2025
- Business
- Techday NZ
monday.com grows Q1 revenue 30%, cites continued investment in innovation
has reported its financial results for the first quarter of fiscal 2025, recording revenue of $282.3 million, marking a 30% increase compared to the same period in the previous year. The company continued its trend of growth after its initial public offering, achieving record results in both GAAP and non-GAAP operating income, as well as its highest-ever adjusted free cash flow for a single quarter. The adjusted free cash flow for the period reached $109.5 million, compared to $89.9 million in the first quarter of 2024. GAAP operating income rose to $9.8 million from a loss of $5.0 million in the prior year's first quarter, and non-GAAP operating income increased to $40.8 million from $21.5 million in the year-ago quarter. The company's net cash provided by operating activities was $112.0 million, up from $92.0 million in the same period last year. GAAP net income for the quarter stood at $27.4 million, equivalent to GAAP basic and diluted net income per share of $0.54 and $0.52, respectively. Non-GAAP basic and diluted net income per share was $1.14 and $1.10, an increase from $0.64 and $0.61, respectively, from the first quarter of 2024. also reported growth in its customer base, especially among larger clients. The number of paid customers with more than $100,000 in annual recurring revenue (ARR) reached 1,328, a 46% increase from 911 at the end of March 2024. Customers with more than $50,000 in ARR rose 38% to 3,444, up from 2,491. The number of paid customers with more than 10 users grew by 9% to 60,566, up from 55,515 in the same period last year. Retention rates also reflected stability and expansion across key customer groups. The overall net dollar retention rate stood at 112%, while customers with more than 10 users recorded a retention rate of 115%. Those with more than $50,000 in ARR had a rate of 116%, and those with over $100,000 in ARR reported 117%. In a joint statement, co-founders and co-CEOs, Roy Mann and Eran Zinman, said: "We are thrilled to report an outstanding start to 2025, highlighted by strong revenue growth in the first quarter, record operating profit, and our highest-ever adjusted free cash flow for a single quarter. These results are a testament to the strength of our multi-product platform, the dedication of our teams, and our relentless focus on operational excellence." Eliran Glazer, Chief Financial Officer at commented on the performance and outlook: "Our strong financial performance and disciplined execution position us well to navigate uncertainties ahead. As we continue to invest in innovation, including the launch of new enterprise work management capabilities and AI-powered features, we are confident in our ability to execute our strategy and capitalise on the significant growth opportunities before us." The company introduced new enterprise capabilities to its monday work management platform during the quarter. These included features aimed at enhancing leadership visibility, standardisation and alignment, and resource optimisation. Advanced artificial intelligence capabilities also continued to be integrated across the product suite, which the company said has seen adoption from customers of all sizes. Management announced the appointment of Casey George as Chief Revenue Officer during the quarter. The company also reported a balance sheet with total assets of $1.85 billion at the end of March 2025, up from $1.69 billion on 31 December 2024. Cash and cash equivalents increased to $1.53 billion from $1.41 billion at the end of last year. Looking ahead to the second quarter of fiscal 2025, expects total revenue between $292 million and $294 million, corresponding to year-over-year growth of 24% to 25%. Non-GAAP operating income is projected to be in the range of $32 million to $34 million, with an operating margin between 11% and 12%. For the full year 2025, the company's guidance indicates total revenue in the range of $1,220 million to $1,226 million, representing annual growth of 25% to 26%. Non-GAAP operating income is expected to fall between $144 million and $150 million, with a non-GAAP operating margin of approximately 12%. Adjusted free cash flow is anticipated to be between $310 million and $316 million, equating to an adjusted free cash flow margin of 25% to 26%. The company continues to provide non-GAAP financial measures, which it believes offer useful insight into current trends and operational performance.
Yahoo
12-05-2025
- Business
- Yahoo
Monday.com's High-Paying Customers Rise 38%, Improves Operating Margin
Ltd (NASDAQ:MNDY) posted first-quarter results on Monday. The company reported a quarterly revenue growth of 30% year-on-year to $282.3 million, beating the consensus of $275.8 million. The project management software company's adjusted EPS of $1.10 beat the analyst consensus estimate of $0.70. The net dollar retention rate was 112% and 115% for customers with more than ten number of paid customers with over $50,000 in annual recurring revenue (ARR) rose 38% year over year to 3,444. The adjusted operating margin increased 400 bps to 14%. In the quarter, generated an operating cash flow of $112 million compared to $92 million a year ago. It generated $110 million in free cash flow, compared to $90 million a year ago, and ended the quarter with $1.6 billion in cash and equivalents. Co-CEOs Roy Mann and Eran Zinman noted strong revenue growth in the first quarter, record operating profit, and its highest-ever adjusted free cash flow for a single quarter. Outlook: expects fiscal second-quarter 2025 revenue of $292 million to $294 million against the analyst consensus estimate of $275.8 million and an adjusted operating margin of 11% to 12%. expects 2025 revenue of $1.220 billion to $1.226 billion (prior $1.208 billion to $1.221 billion), against the analyst consensus estimate of $1.210 billion, and an adjusted operating margin of approximately 12% (prior 11% to 12%). Price Action: stock is trading down 0.81% to $276.00 at the last check on Monday. Image by Shutterstock Up Next: Transform your trading with Benzinga Edge's one-of-a-kind market trade ideas and tools. Click now to access unique insights that can set you ahead in today's competitive market. Get the latest stock analysis from Benzinga? This article High-Paying Customers Rise 38%, Improves Operating Margin originally appeared on © 2025 Benzinga does not provide investment advice. All rights reserved. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
12-05-2025
- Business
- Yahoo
monday.com Announces First Quarter 2025 Results
First quarter revenue of $282.3 million grew 30% year over year Achieved record GAAP and non-GAAP operating income Achieved record adjusted free cash flow NEW YORK & TEL AVIV, Israel, May 12, 2025--(BUSINESS WIRE)-- (NASDAQ: MNDY), the global software company that transforms how businesses run, today reported financial results for its first quarter ended March 31, 2025. Management Commentary: "We are thrilled to report an outstanding start to 2025, highlighted by strong revenue growth in the first quarter, record operating profit, and our highest-ever adjusted free cash flow for a single quarter," said co-founders and co-CEOs, Roy Mann and Eran Zinman. "These results are a testament to the strength of our multi-product platform, the dedication of our teams, and our relentless focus on operational excellence." "Our strong financial performance and disciplined execution position us well to navigate uncertainties ahead," said Eliran Glazer, CFO. "As we continue to invest in innovation, including the launch of new enterprise work management capabilities and AI-powered features, we are confident in our ability to execute our strategy and capitalize on the significant growth opportunities before us." First Quarter Fiscal 2025 Financial Highlights: Revenue was $282.3 million, an increase of 30% year-over-year. GAAP operating income was $9.8 million compared to a loss of $5.0 million in the first quarter of 2024; GAAP operating margin was 3% compared to negative 2% in the first quarter of 2024. Non-GAAP operating income was $40.8 million compared to $21.5 million in the first quarter of 2024; non-GAAP operating margin was 14%, compared to 10% in the first quarter of 2024. GAAP basic and diluted net income per share was $0.54 and $0.52, respectively, compared to GAAP basic and diluted net income per share of $0.14 in the first quarter of 2024; non-GAAP basic and diluted net income per share was $1.14 and $1.10, respectively, compared to non-GAAP basic and diluted net income per share of $0.64 and $0.61, respectively, in the first quarter of 2024. Net cash provided by operating activities was $112.0 million, with $109.5 million of adjusted free cash flow, compared to net cash provided by operating activities of $92.0 million and $89.9 million of free cash flow in the first quarter of 2024. Recent Business Highlights: Net dollar retention rate was 112%. Net dollar retention rate for customers with more than 10 users was 115%. Net dollar retention rate for customers with more than $50,000 in ARR was 116%. Net dollar retention rate for customers with more than $100,000 in ARR was 117%. The number of paid customers with more than 10 users was 60,566, up 9% from 55,515 as of March 31, 2024. The number of paid customers with more than $50,000 in ARR was 3,444, up 38% from 2,491 as of March 31, 2024. The number of paid customers with more than $100,000 in ARR was 1,328, up 46% from 911 as of March 31, 2024. Appointed Casey George as Chief Revenue Officer. Launched new enterprise capabilities for monday work management, including features focused on leadership visibility, standardization and alignment, and resource optimization. Continued to integrate advanced AI capabilities across the product suite, driving strong adoption from customers of all sizes. Financial Outlook: For the second quarter of fiscal year 2025, currently expects: Total revenue of $292 million to $294 million, representing year-over-year growth of 24% to 25%. Non-GAAP operating income of $32 million to $34 million and operating margin of 11% to 12%. For the full year 2025, currently expects: Total revenue of $1,220 million to $1,226 million, representing year-over-year growth of 25% to 26%. Non-GAAP operating income of $144 million to $150 million and operating margin of approximately 12%. Adjusted free cash flow of $310 million to $316 million and adjusted free cash flow margin of 25% to 26%. Non-GAAP Financial Measures: This press release and the accompanying tables contain the following non-GAAP financial measures: non-GAAP gross profit, non-GAAP gross margin, non-GAAP sales and marketing expenses, non-GAAP research and development expenses, non-GAAP general and administrative expenses, non-GAAP operating income, non-GAAP operating margin, non-GAAP net income, non-GAAP net income per share, adjusted free cash flow, which is defined as free cash flow plus costs associated with the built-out and expansion of our corporate headquarters and adjusted free cash flow margin. Certain of these non-GAAP financial measures exclude share-based compensation. believes that these non-GAAP financial measures provide useful information to management and investors regarding certain financial and business trends relating to financial condition and results of operations. management uses these non-GAAP measures to compare performance to that of prior periods, for trend analysis and for budgeting and planning purposes. believes that the use of these non-GAAP financial measures provides an additional tool for investors to use in evaluating ongoing operating results and trends and in comparing financial results to the results of other software companies, many of which present similar non-GAAP financial measures to investors. The non-GAAP financial information is presented for supplemental informational purposes only and should not be considered a substitute for financial information presented in accordance with GAAP and may be different from similarly titled non-GAAP measures used by other companies. Management does not consider these non-GAAP measures in isolation or as an alternative to financial measures determined in accordance with GAAP. The principal limitation of these non-GAAP financial measures is that they exclude significant expenses and income that are required by GAAP to be recorded in financial statements. In addition, they are subject to inherent limitations as they reflect the exercise of judgment by management about which expenses and income are excluded or included in determining these non-GAAP financial measures. Reconciliation tables of the most directly comparable GAAP financial measures to the non-GAAP financial measures used in this press release are included with the financial tables at the end of this release. urges investors to review these reconciliation tables and not to rely on any single financial measure to evaluate the business. Management is not able to forecast GAAP operating income (loss) on a forward-looking basis without unreasonable efforts due to the high variability and difficulty in predicting share-based compensation expense, the amounts of which may be significant in future periods. Management is not able to forecast GAAP net cash provided by operating activities on a forward-looking basis without unreasonable efforts due to the high variability and difficulty in predicting property and equipment purchases and capitalized software costs, the amounts of which may be significant in future periods. Definitions of Business Key Performance Indicators Net Dollar Retention Rate We calculate Net Dollar Retention Rate as of a period end by starting with the ARR from customers as of the 12 months prior to such period end ("Prior Period ARR"). We then calculate the ARR from these customers as of the current period end ("Current Period ARR"). The calculation of Current Period ARR includes any upsells, contraction and attrition. We then divide the total Current Period ARR by the total Prior Period ARR to arrive at the Net Dollar Retention Rate. For the trailing 12-month calculation, we take a weighted average of this calculation of our quarterly Net Dollar Retention Rate for the four quarters ending with the most recent quarter. Annual Recurring Revenue ("ARR") Is defined to mean, as of the measurement date, the annualized value of our customer subscription plans assuming that any contract that expires during the next 12 months is renewed on its existing terms. Forward-Looking Statements: This press release contains "forward-looking statements" within the meaning of the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995, including but not limited to, statements regarding our financial outlook and market positioning. These forward-looking statements are made as of the date they were first issued and were based on current expectations, estimates, forecasts and projections as well as the beliefs and assumptions of management. Words such as "outlook," "guidance," "expect," "anticipate," "should," "believe," "hope," "target," "project," "plan," "goals," "estimate," "potential," "predict," "may," "will," "might," "could," "intend," "shall" and variations of these terms or the negative of these terms and similar expressions are intended to identify these forward-looking statements. Forward-looking statements are subject to a number of risks and uncertainties, many of which involve factors or circumstances that are beyond control. actual results could differ materially from those stated or implied in forward-looking statements due to a number of factors, including but not limited to our ability to effectively manage the scope and complexity of our business following years of rapid growth and our ability to maintain profitability; foreign currency exchange rate fluctuations; the fact that we continue to derive a majority of revenues from monday work management; fluctuations in operating results; real or perceived errors, failures, vulnerabilities or bugs in our platform, products or third-party applications offered in our app marketplace or interruptions or performance problems in the technology or infrastructure underlying our platform; risks related to artificial intelligence and machine learning; our ability to attract customers, grow our retention rates and expand usage within organizations, including cross-selling and upselling; risks related to our subscription-based business model; our sales efforts may require considerable time and expense and the use of differing sales strategies may extend our sales cycles; changes in sizes or types of business that purchase our platform and products; our ability to offer high-quality customer support and consistent sales strategies; maintenance of corporate culture; risks related to international operations and compliance with laws and regulations applicable to our global operations; risks related to acquisitions, strategic investments, partnerships, or alliances; risks associated with environmental and social responsibility and climate change; our dependence on key employees and ability to attract and retain highly skilled employees; our ability to raise additional capital or generate cash flows necessary to grow our business; uncertain global economic conditions and inflation; changes and competition in the market and software categories in which we participate; our ability to introduce new products, features, integrations, capabilities, and enhancements; the ability of our platform to interoperate with a variety of software applications; our reliance on third-party application stores to distribute our mobile application; our successful strategic relationships with, and our dependence on third parties; our reliance on traditional web search engines to direct traffic to our website; interruption or delays in service from third parties or our inability to plan and manage interruptions; risks related to security disruptions, unauthorized system access; evolving privacy protection and data security laws, regulations, industry standards, policies, contractual obligations, and cross-border data transfer or localization restrictions; new legislation and regulatory obligations regulating AI; changes in tax law and regulations or if we were to be classified as a passive foreign investment company; our ability to maintain, protect or enforce our intellectual property rights or intellectual property infringement claims; risks related to our use of open-source software; risks related to our founder share that provides certain veto rights; risks related to our status as a foreign private issuer incorporated and located in Israel, including risks related to the ongoing war between Israel and Hamas and escalations thereof; our expectation not to pay dividends for the foreseeable future; risks related to our Digital Lift Initiative and the Foundation; risks related to legal and regulatory matters; and other factors described in "Risk Factors" in our Annual Report on Form 20-F for the year ended December 31, 2024, filed with the SEC on March 17, 2025. Further information on potential risks that could affect actual results will be included in the subsequent filings that makes with the Securities and Exchange Commission from time to time. Past performance is not necessarily indicative of future results. The forward-looking statements included in this press release represent views as of the date of this press release. anticipates that subsequent events and developments will cause its views to change. undertakes no intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise. These forward-looking statements should not be relied upon as representing views as of any date subsequent to the date of this press release. Earnings Webcast: will hold a public webcast at 8:30 a.m. ET today to discuss the results for its first quarter 2025 and financial outlook. The live call may also be accessed via telephone at +1 (646) 968-2525 or +1 (888) 596-4144 (toll-free). Please reference conference ID: 5473715. An archived webcast can be accessed from the News & Events section of Investor Relations website following the call. Investor Presentation Details: An investor presentation providing additional information can be found at About is a global software company that transforms how businesses run. Our product suite can adapt to the needs of diverse industries and use cases within one powerful platform. Our ~245,000 customers are reimagining how work gets done, driving greater efficiency, and scaling like never before. For more information, visit LTD CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (U.S. dollars in thousands, except share and per share data) Three months ended March 31, 2025 2024 (unaudited) Revenue $ 282,250 $ 216,913 Cost of revenue 28,805 23,454 Gross profit 253,445 193,459 Operating expenses: Research and development 69,385 44,423 Sales and marketing 141,720 128,141 General and administrative 32,544 25,917 Total operating expenses 243,649 198,481 Operating income (loss) 9,796 (5,022 ) Financial income, net 17,647 12,839 Income before income taxes 27,443 7,817 Income tax (18 ) (739 ) Net income $ 27,425 $ 7,078 Net income per share, basic $ 0.54 $ 0.14 Net income per share, diluted $ 0.52 $ 0.14 Weighted-average ordinary shares used in calculating net income per ordinary share, basic 51,005,188 49,204,541 Weighted-average ordinary shares used in calculating net income per ordinary share, diluted 53,042,479 52,020,163 LTD CONDENSED CONSOLIDATED BALANCE SHEETS (U.S. dollars in thousands) March 31, December 31, 2025 2024 ASSETS (unaudited) (audited) CURRENT ASSETS: Cash and cash equivalents $ 1,527,605 $ 1,411,602 Marketable securities 60,730 50,004 Accounts receivable, net 26,436 25,804 Prepaid expenses and other current assets 50,420 44,836 Total current assets 1,665,191 1,532,246 LONG-TERM ASSETS: Property and equipment, net 43,233 41,576 Operating lease right-of-use assets 114,146 94,703 Other long-term assets 23,704 16,983 Total long-term assets 181,083 153,262 Total assets $ 1,846,274 $ 1,685,508 LIABILITIES AND SHAREHOLDERS' EQUITY CURRENT LIABILITIES: Accounts payable $ 31,863 $ 35,611 Accrued expenses and other current liabilities 203,937 171,040 Deferred revenue, current 384,031 339,951 Operating lease liabilities, current 29,343 29,013 Total current liabilities 649,174 575,615 LONG-TERM LIABILITIES: Operating lease liabilities, non-current 93,197 77,023 Deferred revenue, non-current 2,660 2,639 Total long-term liabilities 95,857 79,662 Total liabilities 745,031 655,277 SHAREHOLDERS' EQUITY: Other comprehensive income (loss) (2,273 ) 3,189 Share capital and additional paid-in capital 1,628,123 1,579,074 Accumulated deficit (524,607 ) (552,032 ) Total shareholders' equity 1,101,243 1,030,231 Total liabilities and shareholders' equity $ 1,846,274 $ 1,685,508 LTD CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (U.S. dollars in thousands) Three months ended March 31, 2025 2024 (unaudited) CASH FLOWS FROM OPERATING ACTIVITIES: Net income $ 27,425 $ 7,078 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation and amortization 3,250 2,533 Share-based compensation 30,958 26,543 Amortization of discount and accretion of interest on marketable securities (675 ) — Changes in operating assets and liabilities: Accounts receivable, net (632 ) (399 ) Prepaid expenses and other assets (9,770 ) 2,107 Accounts payable (3,844 ) 12,043 Accrued expenses and other liabilities, net 21,157 6,346 Deferred revenue 44,101 35,704 Net cash provided by operating activities 111,970 91,955 CASH FLOWS FROM INVESTING ACTIVITIES: Purchase of property and equipment (3,687 ) (1,460 ) Purchase of marketable securities (10,049 ) — Capitalized software development costs (779 ) (601 ) Net cash used in investing activities (14,515 ) (2,061 ) CASH FLOWS FROM FINANCING ACTIVITIES: Proceeds from exercise of share options and employee share purchase plan 14,136 8,708 Receipt of tax advance relating to exercises of share options and RSUs, net 4,412 9,814 Net cash provided by financing activities 18,548 18,522 INCREASE IN CASH, AND CASH EQUIVALENTS 116,003 108,416 CASH AND CASH EQUIVALENTS - Beginning of period 1,411,602 1,116,128 CASH AND CASH EQUIVALENTS - End of period $ 1,527,605 $ 1,224,544 LTD Reconciliation of GAAP to Non-GAAP Financial Information (U.S. dollars in thousands) Three months ended March 31, 2025 2024 (unaudited) Reconciliation of gross profit and gross margin GAAP gross profit $ 253,445 $ 193,459 Share-based compensation 1,134 1,244 Non-GAAP gross profit $ 254,579 $ 194,703 GAAP gross margin 90 % 89 % Non-GAAP gross margin 90 % 90 % Reconciliation of operating expenses GAAP research and development $ 69,385 $ 44,423 Share-based compensation (15,541 ) (9,626 ) Non-GAAP research and development $ 53,844 $ 34,797 GAAP sales and marketing $ 141,720 $ 128,141 Share-based compensation (5,838 ) (7,335 ) Non-GAAP sales and marketing $ 135,882 $ 120,806 GAAP general and administrative $ 32,544 $ 25,917 Share-based compensation (8,445 ) (8,338 ) Non-GAAP general and administrative $ 24,099 $ 17,579 Reconciliation of operating income (loss) GAAP operating income (loss) $ 9,796 $ (5,022 ) Share-based compensation 30,958 26,543 Non-GAAP operating income $ 40,754 $ 21,521 GAAP operating margin 3 % (2 %) Non-GAAP operating margin 14 % 10 % Reconciliation of net income GAAP net income $ 27,425 $ 7,078 Share-based compensation 30,958 26,543 Tax benefit related to share-based compensation(1) — (1,905 ) Non-GAAP net income $ 58,383 $ 31,716 Reconciliation of weighted average number of shares outstanding Weighted-average ordinary shares used in calculating GAAP and Non-GAAP net income per ordinary share, basic 51,005,188 49,204,541 Effect of dilutive shares 2,037,291 2,815,622 Weighted-average ordinary shares used in calculating GAAP and Non-GAAP net income per ordinary share, diluted 53,042,479 52,020,163 GAAP net income per share, basic $ 0.54 $ 0.14 GAAP net income per share, diluted $ 0.52 $ 0.14 Non-GAAP net income per share, basic $ 1.14 $ 0.64 Non-GAAP net income per share, diluted $ 1.10 $ 0.61 (1) The tax benefit related to share-based compensation was excluded in calculating non-GAAP net income and non-GAAP net income per basic and diluted share. The Company believes that excluding the tax benefit enables investors to see the full effect that excluding share-based compensation expenses had on the operating results. LTD Reconciliation of net cash provided by operating activities to adjusted free cash flow (U.S. dollars in thousands) Three months ended March 31, 2025 2024 (unaudited) Net cash provided by operating activities $ 111,970 $ 91,955 Purchase of property and equipment (3,687 ) (1,460 ) Capitalized software development costs (779 ) (601 ) Purchase of property and equipment related to build-out and expansion of our corporate headquarters 2,028 — Adjusted free cash flow $ 109,532 $ 89,894 Adjusted free cash flow margin 39 % 41 % View source version on Contacts Investor Relations: Byron Stephenbyron@ Media Relations: Julie Casejulieca@ Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
