Latest news with #monday.com
Yahoo
24-05-2025
- Business
- Yahoo
Was Jim Cramer Right About monday.com Ltd. (MNDY)?
We recently published a list of . In this article, we are going to take a look at where Ltd. (NASDAQ:MNDY) stands against other stocks that Jim Cramer discusses. Back in 2024, on May 15, a caller asked about Ltd. (NASDAQ:MNDY), curious about its potential and options activity. Cramer saw the company as a strong junior version of Salesforce. 'I know a lot of people feel that it's going to get a takeover bid — I can't acknowledge anything, I don't know anything about a takeover bid. I do know this: my Monday is a very good — mini You could call it maybe a junior is the way to put it. And they're very smart people. I would not bet against them.' Software engineers collaborating on a project while seated in a shared workspace. The stock outperformed as Cramer predicted, gaining 28.34% and showing solid execution in its category. Ltd. (NASDAQ:MNDY) is gaining traction as a fast-moving project management platform with strong enterprise appeal. Overall, MNDY ranks 11th on our list of stocks that Jim Cramer discusses. While we acknowledge the potential of MNDY as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than MNDY and that has 100x upside potential, check out our report about this cheapest AI stock. READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires. Disclosure: None. This article is originally published at Insider Monkey. 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
13-05-2025
- Business
- Yahoo
Q1 2025 monday.com Ltd Earnings Call
Byron Stephen; Vice President, Investor Relations; Ltd Roy Mann; Co-Chief Executive Officer, Co-Founder, Director; Ltd Eran Zinman; Co-Chief Executive Officer, Co-Founder, Director; Ltd Eliran Glazer; Chief Financial Officer; Ltd Kash Rangan; Analyst; Goldman Sachs Group, Inc. Alex Zukin; Analyst; Wolfe Research Pinjalim Bora; Analyst; JPMorgan Arjun Bhatia; Analyst; William Blair & Company L.L.C. Steve Enders; Analyst; Citigroup Inc. Brent Thill; Analyst; Jefferies LLC Brent Bracelin; Analyst; Piper Sandler & Co Jackson Ader; Analyst; KeyBanc Capital Markets Inc. Michael Berg; Analyst; Wells Fargo Securities, LLC Tom Blakey; Analyst; Cantor Fitzgerald & Co. Matt Bullock; Analyst; BofA Securities, Inc. Raimo Lenschow; Analyst; Barclays David Hynes; Analyst; Canaccord Genuity Conner Murphy; Analyst; Capital One Scott Berg; Analyst; Needham & Company Taylor McGinnis; Analyst; UBS Allan Verkhovski; Analyst; Scotiabank Rob Oliver; Analyst; Robert W. Baird & Co Inc Operator Good day. My name is Janice, and I'll be your conference operator today. At this time, I would like to welcome everyone to first-quarter fiscal year 2025 earnings conference call. I would like to turn the call over to Vice President of Investor Relations, Mr. Byron Stephen. Please go ahead. Byron Stephen Hello, everyone, and thank you for joining us on today's conference call to discuss the financial results for first quarter fiscal year 2025. Joining me today are Roy Mann and Eran Zinman, Co-CEOs of and Eliran Glazer, CFO. We released our results for the first quarter fiscal year 2025 earlier today. You can find our quarterly shareholder letter, along with our investor presentation and a replay of today's webcast under the News and Events section of our IR website at Certain statements made on the call today will be forward-looking statements, which reflect management's best judgment based on currently available information. These statements involve risks and uncertainties that may cause actual results to differ from our expectations. Please refer to our earnings release for more information on the specific factors that could cause actual results to differ materially from our forward-looking statements. Additionally, non-GAAP financial measures will be discussed on the call. Reconciliations to the most directly comparable GAAP financial measures are available in the earnings release and the earnings presentation for today's call, which are posted on our Investor Relations website. Now let me turn the call over to Roy. Roy Mann Thank you, Byron, and thank you everyone for joining us today. We are pleased to report that 2025 is off to an exceptional start for In Q1, we delivered robust revenue growth of 30% year over year, achieved record quarterly operating profit and generated our highest ever cash flow for a single quarter. These results reflect the strengths of our multiproduct offering, the dedication of our teams and our continued focus on operational excellence. We also continue to invest in product innovation, including the launch of new monday work management capabilities and AI powered features which are being rapidly adopted by our customers. As of the end of Q1, we've seen our user perform more than 26 million AI actions to date, up more than 150% since the end of 2024. We are thrilled to see such rapid growth in usage of AI as our customers utilize the features to automate complex tasks, extract insights and accelerate decision making. Our strong financial performance and discipline operations position as to whether any uncertainties in the year ahead. During times of market volatility, customers increasingly rely on for our flexible platform and cost effective solutions. Our adaptable product suite and scalable pricing enable businesses to stay agile, optimize resources and confidently manage the changing demands. Let me now turn it over to Eran to walk you through some of our business and product highlights of the quarter. Eran Zinman Thank you, Roy. The enterprise continued to be our fastest-growing segment and present significant opportunities for market share expansion. And we are excited to be strengthening our efforts with these customers. In Q1, we launched a set of new capabilities available exclusively in the work management enterprise tier, designed to provide business leaders with enhanced visibility and control our execution across departments. This includes exciting new features, such as AI-powered risk insights, AI-powered portfolio reports, managed templates, resource planning capabilities and more. We are also very happy to announce the appointment of Casey George as Chief Revenue Officer. Casey brings nearly 30 years of experience in scaling enterprise software organization and driving strategic market expansion. Most recently, he served as Executive Vice President of Global Sales at Qlik, where we offer saw $1.3 billion in annual recurring revenue and led a global team of over 1,000 employees. His leadership track record also includes senior roles at Talent, Verint and IBM, where he successfully built and align go-to-market organizations across multiple business environments. Casey will be based out of our North America headquarters in New York City. This marks an exciting milestone as we welcome our first global C-level leader to We are confident that his expertise will further accelerate our enterprise growth, strengthen customer relationships and support the next phase of our go-to-market strategy. In sum, the strong momentum we achieved at the close of 2024 has continued into the first month of 2025, setting a solid foundation for sustained growth. Looking ahead, we remain confident in our ability to execute on our strategic initiatives and capitalize on the significant growth opportunities that lie before us. Despite recent macroeconomic uncertainty, we believe that our strong product offering, resilient business model and disciplined approach position us well to build market share and continue delivering value for customers and shareholders. With that, I'll now turn it over to Eliran to cover our financials and guidance. Eliran Glazer Thank you, Eran, and thank you to everyone for joining our call. As Roy and Eran mentioned, Q1 marked a strong start to 2025 with solid revenue growth and improving efficiency. Total revenue came in at $282 million, up 30% from the year ago quarter. Overall, NDR was stable at 112% in Q1 with improving retention for our larger customers' cohort. As a reminder, our NDR is a trailing four quarter weighted average calculation. For the reminder of the financial metrics disclosed unless otherwise noted, I will be referencing non-GAAP financial measures. We have provided a reconciliation of GAAP to non-GAAP financials in our earnings release. First quarter gross margin was 90%. In the medium to long term, we continue to expect gross margin to be in the high-80s range. Research and development expense was $53.8 million in Q1 or 19% of revenue, up from 16% in the year ago quarter. Sales and marketing expense was $135.9 million in Q1 or 48% of revenue compared to 56% in the year ago quarter. Net income was $58.4 million in Q1 '25, up from $31.7 million in Q1 '24. Diluted net income per share was $1.10 in Q1 based on 53 million fully diluted shares outstanding. Total employee head count was 2,695, an increase of 187 employees since Q4. We continue to expect to grow head count by approximately 30% in fiscal year '25. Moving on to the balance sheet and cash flow. We ended the quarter with $1.53 billion in cash and cash equivalents, up from $1.41 billion at the end of Q4. Adjusted free cash flow for Q1 was $109.5 million, and adjusted free cash flow margin was 39%. Adjusted free cash flow margin is defined as adjusted free cash flow as a percentage of revenue. We remain on target to meet our Investor Day goal generating over $1 billion in free cash flow from fiscal year '23 to fiscal year '26. Adjusted free cash flow 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 our corporate headquarters. Now let's turn into our updated outlook for fiscal year 2025. For the second quarter of fiscal year 2025, we expect our revenue to be in the range of $292 million to $294 million, representing growth of 24% to 25% year-over-year. We expect non-GAAP operating income of $32 million to $34 million and an operating margin of 11% to 12%. For the full year 2025, we expect revenue to be in the range of $1.220 billion to $1.226 billion, representing growth of 25% to 26% year over year. This forecast now assumes a negative impact from FX of less than 100 basis points. We expect full year non-GAAP operating income of $144 million to $150 million and an operating margin of approximately 12%. We expect full year adjusted free cash flow of $310 million to $360 million and adjusted free cash flow margin of 25% to 26%. Let me now turn it over to the operator for your questions. Operator (Operator Instructions) Kash Rangan, Goldman Sachs. Kash Rangan Well, thank you so much. Congratulations on a spectacular start to the year. With the new addition of your Chief Revenue Officer coming on board, I'm curious to get your take on what are the things about the go-to-market approach for monday, which has worked really so beautifully that you preserve with this new executive going forward? And what are the things that you would like to be done differently, especially with the broader diversification of the product. We've got multiple products. Now you've got the work management, you got dev, you've got a CRM, a whole bunch of IT, et cetera. So given that the company wants to scale and become even more successful, what changes in go-to-market do you foresee ahead. Thank you so much, and that's it for me. Eran Zinman Hey, Kash. This is Eran. So first of all, I want to say we're very excited for Casey to join. He actually joined last week and it's been a long process, and we feel very confident about Casey joining the company. I can say that on one hand, I think, like you mentioned, it's a machine that we've built over the years that combines product-led growth with self-led motion. And I think we would love to preserve our ability to do both performance marketing and to do more top-down selling at the same time. Also, the multiproduct strategy has been very successful. We definitely want to preserve that and scale that. I think Casey brings a lot of experience overall, but even more specifically, I think, can help accelerate our go-to-market upmarket motion. It's been one of our most strategic pillars and things we'll be focused on as a company. Casey brings a lot of expertise and knowledge about selling to larger enterprises and scale in that operation, and I'm sure it's going to help us accelerate what we've already been doing. In addition to improving a lot of the things, increasing efficiency, and I think it's going to be a smooth transition with a lot of potential upside going forward. Operator Alex Zukin, Wolfe Research. Alex Zukin Hey, guys. Thanks for taking the question. Congrats on a great quarter. Maybe just run us through what you saw this quarter from the CRM and the service business. And then that looked surprisingly strong actually according to our numbers. So just maybe give us a little bit of an explanation there. And then on NRR or NDR, it was solid at flat at 112%. There were some moving pieces where it looks like it's continuing to strengthen upmarket. So maybe help us understand how to think about that going forward as we go through 2025. Thanks, guys. Eran Zinman Yeah. Thanks, Alex. This is Eran. So yeah, we see great momentum overall with our product suite. More specifically, Q1 had a strong performance in terms of net adds of customers. I think part of it is seasonality of our performance marketing spend. Traditionally, Q1 is a strong quarter for us in terms of performance marketing investment and because of the nature of those products and the fact that it's a new go-to market for us. Just the net adds that we saw in Q1 were high and aligned with our expectations. With that, I would say service is not just an SMB product. We see 70% of the ARR for monday service coming from mid-market and enterprise segments also strong momentum there. And for monday dev, we're very encouraged with the go-to-market. We're making some changes in optimizations. And overall, we feel there's good momentum. So overall, it's very much in line with what we expected from Q1. Momentum is strong across all products, and we continued investment in terms of performance marketing going forward. In terms of net retention, I'll refer to Eliran. Eliran Glazer Sure. Hi, Alex. It's Eliran. With regards to NDR, look, while we haven't seen any changes in customer behavior, there is more uncertainty in the macroeconomic environment. So when we think about NDR, currently, it's around 112%. We believe it's going to be slightly below 112% potentially by the end of the year, having in mind the uncertainty that they currently exist. Operator Pinjalim Bora, JPMorgan. Pinjalim Bora Just want to ask on your actions. It seems like that's growing exponentially. Maybe talk about that strength. How much of that is experimentation at this point versus being added to production workflows or automation? Have you heard any productivity improvements from customers? And have you started monetizing the actions at this point? Roy Mann Yeah. Hi. It's Roy. So yeah, we're very happy with the adoption on a lot of levels. First off, we see a lot of customers get a lot of value out of those actions and the numbers are great, but they don't really represent the value. It's like real business value in a lot of aspects. And we are monetizing it. It's still, I would say, like the usage we see it dip in many areas, but the monetization is still early in early stages, and we're experimenting with it. We do see a correlation between usage and in pricing and the fact that people do actually pay when they get new real value. Pinjalim Bora Understood. One quick follow-up for Eliran. Eliran, can you help us understand the FX impact in Q1? And it seems like you're kind of taking down the FX headwind assumption, which makes sense, but the guidance is not coming up as much, right? So I wanted to ask you, anything you said you're not seeing any change in behavior, but is that purely based on prudence? Or is there anything that you're seeing at this point? Eliran Glazer Yeah. Sure, Pinjalim. So we did have some negative FX impact to Q1 revenue. But as a reminder, when we started the year, once the tariff was announced, FX became very volatile. Going into April, there is some more balanced trends. So we assume that the effect for the entire year is going to be less than 1%. And the reason not everything is reflected in the guidance because we did take a more conservative approach with regards to our expectations for the end of the year because of the macroeconomic situation and the uncertainties that still exist. Operator Arjun Bhatia, William Blair. Arjun Bhatia Perfect. Thank you, guys and congrats on the strong Q1 here. One if I can ask, it seems like the (technical difficulty) market margin, it seems like you're seeing quite a bit of success there, especially with the core work management offering moving up. I guess my question is as the work management offering moves upmarket, does that drag your other solutions upmarket as well with CRM service dev. And what kind of traction are you seeing there? Are those on their own independent trajectory to enterprise on its own from work management? How would you think about that? Thank you. Roy Mann Hi. It's Roy. So yeah, you're right. Like work management is going a lot up market. We're leading that category also in all their reviews. And we're seeing a lot of deep features or capabilities that we're releasing that enterprise really need to manage things at scale. Regarding other products, it varies according to each product. So for example, service is obviously targeted into the larger customers like mid-market to higher size while CRM, we see a lot of success in the SMB low mid-market. And so, one may not have that impact on the other like you suggested, and each product has their own path. Having said that, I'll tell you we push all the poor products upwards all the time. As we increase the capabilities and deepen each product suite ecosystem, we naturally go up market. Operator Steve Enders, Citi. Steve Enders I guess, I just wanted to dig a little bit more on to the guide. I just want to get a better sense for how the uncertainty that you're seeing with customers is playing out with the assumptions that you're making? Just anything on, I guess, as it related to deal cycles or deals pushing or conversion rate change assumptions? Just how is the, I guess, uncertainty actually manifesting into how you're thinking about, I guess, what's incrementally changed with the outlook versus before? Eliran Glazer Sure. Hey, Steve, it's Eliran. So first of all, overall customer growth, we believe it's going to be in the mid to high single-digit growth year-over-year. We still continue to believe that it's impact, as I mentioned earlier, is going to be less than 1% as we have seen it's very volatile. Overall NDR that always is taking into account as part of guidance, we said it's going to be slightly below [112%]. We don't have any revenue from AI that we are currently taking into account in fiscal year 2025. And we have a very small amount of monday service revenue that we built into the guidance. But I think all of that is, again, we see some uncertainty in the market still exists with everything that is going on. We did take a more conservative approach, and we want to see how it's going to develop throughout the year. Operator (Operator Instructions) Brent Thill, Jefferies. Brent Thill Thanks. Curious if you could just give us a sense of what you saw in April versus March and how the current quarter is trending. And just curious if you looked at enterprise versus SMB, any notable trends that you're seeing? Thanks. Eran Zinman Hey, Brian. This is Eran. Yeah. I mean across all segments, enterprise and SMB is pretty consistent throughout Q1 and also going into April. So we don't see any major changes, still enterprise is our fastest-growing segment, but pretty much in line with what we saw in Q1. And also, we've seen very strong demand in terms of mid-market and in Q1 and also going into April. Let me mention like the net adds was strong in Q1 as we expected. So I would say, all in all, it's pretty much in line. We don't see anything special going into April. Operator Brent Bracelin, Piper Sandler. Brent Bracelin Thank you for taking the call here. I wanted to double-click into the larger cohort of customers. Another good quarter here of expansion. How much of the momentum here is driven by cross-sell, where larger enterprises are actually adding new apps versus expansion. Obviously, expansion has been the biggest driver of the move-up market. Wondering how much of a role cross-sell has now as well in aiding that move. Thanks. Eran Zinman Yeah. Hi, Brent. This is Eran. So look, definitely, a lot of the expansions are -- a lot of the enterprise accounts are coming from expansions of accounts that kind of grew within the platform. We do see more and more accounts that closed bigger deals from the beginning, but I would say still the vast majority is account expanding. We do see more cross-sell definitely on a month of service. It's more meaningful, but also happens with other products. I would say the vast majority of like the major expansions we see today are based on adding significant amount of seats and not like significant cross-sell yet. But over time, we think this will change, obviously. Brent Bracelin Helpful color. And then just one follow-up for Eliran, if I could. You talked a little bit about linearity in the quarter. Could you talk about geo? Obviously, we're all kind of nervous around what happens next. It sounds like things continue to plug along here for you. But from a geo perspective, was there any unusual activity by any geography? Or again, was it still pretty balanced for what you've seen so far? Eliran Glazer Yeah. Hey, Brent. So the short answer is demand has been healthy and consistent across all regions in Q1. We didn't see anything that we can call out in a different manner. Operator Jackson Ader, KeyBanc Capital Markets. Jackson Ader Thanks for taking our questions, guys. The first one on dev. The customer additions saw a really nice bounce back here in the first quarter. And so, can we just get an update on where we are in the timing of dev's repositioning in the market? Thank you. Eran Zinman Yeah. So, Jackson, this is Eran. So look, I mean, overall, we're happy with the progress with monday dev. And definitely, we see momentum there and the team is doing a great job. It's good see for customers -- I would say, the change in the growth, most of the change in terms of customer adds in Q1 was stronger performance marketing that we're able to span efficiently. So there's not like major go to market change in monday dev. And it's more of a seasonality, I would say, that's kind of skewed a little bit towards Q1. But yeah, I mean, overall, we're happy with the progress. The team is launching a lot of new features and capabilities, and there's good feedback from customers. So overall, we're happy with the progress and the momentum. Jackson Ader Okay. Great. And then just as a quick follow-up. I mean if you think periods of uncertainty and that might manifest itself in the business. I mean do you expect would be -- how would that show up? Would it be your performance marketing channels like top of funnel becomes more difficult? Is it people buying more standard basic instead of pro. What does that look like if it were to happen? Roy Mann Hi. It's Roy. So I think what we saw is like in the past is that for larger enterprises, it takes more time to buy, more decision-making and they might optimize way more scrutinize over seats and see that each one is like really used over time. So that's where we see things. Like I can say right now, from where we look at things, the demand is very healthy. And we're able to continue in investing growth in a very good way and also expand really well. But again, that's what happens and sometimes that's what we see in different years. Operator Michael Berg, Wells Fargo Securities. Michael Berg Hi, there. Thanks for taking my questions and congrats on the quarter. I wanted to touch on the hiring plans. You had another uptick on year-over-year growth. I know there's a lot of focus around high enterprise sales reps. So maybe you can help us give us some better color on the typical timing of ramps for enterprise sales reps and how much of the contribution from this new cohort of sellers is embedded in the guidance? Thanks. Eran Zinman Yeah. Hi, Michael, this is Eran. So yeah, I mean, overall, we see strong hiring trends in Q4 and into Q1. Just to mention in Q1, we added about 187 new employees. And overall, there's almost 2,700 people in the company. And we expected to see this going into Q2 and the remainder of the year. Just as a reminder, we expect to grow our headcount this year in about 30% overall. I would say the vast majority of our investment goes into the CRO organizations and mostly around salespeople that are doing the enterprise motion and also R&D. That's a big part of our investment. It sends us improving product and our road map. And yeah, look, we see a lot of opportunity to upsell and extend our existing customer portfolio. The hiring pretty much start with the performance that we see in the return on this at. So far, we're very happy with the results, and we continue to invest through the remainder of the year. Operator Tom Blakey, Cantor. Tom Blakey Hey, guys. Thanks for squeezing me in here. Just maybe a couple of quick ones. You mentioned the use of MCP in your shareholder letter. There's been an uptick in that in recent months. I'd just like to know how you're planning on using that and it's going to open up the Work OS platform for other agents and other applications across other larger platforms. That's a question. And then secondly, as you're moving upmarket, any changes in competition that you're seeing maybe in the recent months in 1Q and recent months? Any change there that you're seeing any win rate changes, that would be helpful as well. Thanks for taking the question. Roy Mann So, hi. It's Roy. So regarding the MCP, it's super exciting. It's a new way for LLMs to interact with the platform. And I think we're happy, we're like one of the first to kind of release it and adopt it. It is going to, in general, allow anyone to interact better with monday also to build stuff to work with the platform better. We're always like our approach is being very open also to developers and our customers that can build whatever they want. And I think MCP is a great addition into that AI tool set. And it's very early days, right? Like you say, it's being picked up. It was invented in the last quarter. So like that's moving really quickly. And I think a lot of really good things are coming that way. Eran Zinman Regarding the second part of your question, we don't see any changes in terms of -- this is Eran, we don't see any change in terms of competition or win rates across enterprise and SMB mid-market segment. So no changes here. Operator Michael Funk, Bank of America. Matt Bullock Great. Good morning. This is, Matt Bullock on from Mike Funk. My questions on monday CRM looks like a really strong quarter with net adds accelerating. Maybe if you could just comment on what you're seeing out there in terms of competition, who you're seeing out there most often during RFPs win rates? And then maybe what's resonating most significantly with customers from a functionality standpoint? Eran Zinman Yeah. Definitely. Hi, this is Eran. So in terms of CRM. So we don't see any changes I would say in the last quarter in terms of competition. I would say the players we meet the most would be, Pipedrive, Zoho, SugarCRM, [Hotspots] from time to time. So it's mostly, I would say players that focus right now on SMB mid-market, that would be the most. And I think here the power of the platform, the flexibility played a major role in why we win and why customers prefer to purchase monday over other solutions. But definitely, we keep investing into the product and over time we'll sell to hopefully larger and larger enterprise as we add more enterprise functionality. Operator Raimo Lenschow, Barclays. Raimo Lenschow Perfect. Thank you. Thanks for squeezing me in. Question on cash flow. You had a very strong in Q1. Was there anything special in there that we should be aware of? And how should we think about seasonality for the rest of the year there? Thank you. Eliran Glazer Sure. Hi, it's Eliran. So with regards to seasonality, Q1 is usually our strongest quarter. In Q2, you have the bonus payments to the salespeople, the results of the hiring in Q1, the salary increases and the comp adjustment that we are doing in Q1, some events or they are all kind of in Q2. So Q1, usually at the beginning of the year, we see strong billings and collections from customers that acquired our products and solution at the end of the year. Overall, in accordance with what we gave as part of our full year guidance, this is the level that we are expecting throughout the year. Operator DJ Hynes, Canacord. David Hynes Hey, good morning, guys. Eliran, if we strip price out from the NRR calculus, what are the underlying trends look like there? Are they more stable? Or are they still trending upwards? Eliran Glazer I think they are more stable pretty much. We said last year that the contribution of price increase would be around 1% to 2%. Now obviously, the impact was mostly (inaudible) so I would say more stable by and large. David Hynes Yeah. Makes sense. And then Eran or Roy, so if I think back to last year, Q2, Q3, you had some pretty major seat expansion deals with some of your largest customers. I'm curious what the appetite looks like within those folks for additional product adoption, right? I mean, they've recently made big bets with you guys. Is there some digestion that needs to happen? Or does that increase surface area actually make it more likely that they add additional functionality sooner? Eran Zinman Yeah. Hi, DJ, it's Eran. So look, I think when it comes to CRM and dev, I think those products are not mature enough in order to be kind of cross-sell to large enterprises. We're talking here, let's say, over 10,000 seats. But we see some maybe surprising momentum with monday service, where there's more adoption with the larger enterprises. So here, I think there's an opportunity for more cross-sell to larger customers. So I think it's still premature for CRM and dev, but with monday services more potential. We're starting to see more and more cross-sell, not just for SMBs in market, but also for enterprise customers. Roy Mann And if I can add, so we do see for some of them that they adopted really well and people are using and they have like appetite, like you said, for growth. Operator Connor Murphy, Capital One. Conner Murphy Hey, good morning, guys. Thank you. I just want to take another crack at the NDR downtick in guidance. In the last quarter, you thought it was unstable for (technical difficulty) this year, it sounds like you're now it's going to be below 112%. Can you just unpack that a little more. It sounds like trends are stable through April, expansion sounds pretty good with larger customers. Is it purely just conservatism because of the macro? Or is there anything else you guys can give us on that? Thank you. Eran Zinman Hey, Conner. It's Eliran. Again, it's mostly the recent uncertainty, and we did take some conservatism for our NDR expectations because really we don't know how it's going to evolve throughout the year. I would say this is probably the most significant factor. Operator Scott Berg, Needham. Scott Berg Hi, everyone. Nice quarter. Eliran, I wanted to expand on the answer you gave to, I think it, was Brent earlier around geographic traction on what you've seen there. It looks like your European business, in particular, did see some kind of, I don't know, meaningful growth deceleration in the quarter. Was it something on the sales side? Or was there an FX component? I'm trying to understand why that growth in that particular geo was meaningfully different from last quarter? Thank you. Eliran Glazer So hi, Scott, it's Eliran. With regard to Europe for the last year, we saw some weakness when we called it out versus North America. North America continues to be strong. I think sure, there is some challenges in the region in some places. But overall, I think we are getting a more clearer picture. We're actually stabilizing -- still not what we are seeing in North America. But overall, we are pretty happy with the progress that we are seeing there. Operator Taylor McGinnis, UBS. Taylor McGinnis Yeah. Hi, thanks so much for taking my question. So if I look at the guide from 2Q through 4Q, it implies stability and growth in the mid-20s. So Eliran, could you just walk us through the different assumptions and what's supporting your comfort and stability in the mid-20s? I think before you talked about price contributing an incremental $40 million and then seeing CRM, dev and service scaling to maybe low-teens there. So any changes in those inputs or second half growth catalysts that could offset some of the macro headwinds potentially? Thanks. Eliran Glazer Sure. So nothing has changed. Our approach and philosophy to guidance has been consistent. As I said, it's a bit more conservative due to the factors that I mentioned earlier, just to recap them really quickly. The overall NDR, that is going to be below [112%]. The FX impact potentially customer growth that is going to be mid to high single digits. In the past, we said high single digits, but we got to a scale of 245,000 customers at the end of last year and now we're focusing more on expanding rather than growing them. We're still going to increase head count in a significant way, 30%. So I think all of these reasons are taken into account when we think about the guidance, but nothing really changed in the philosophy or the way we are building our guidance. Operator Allan Verkhovski, Scotiabank. Allan Verkhovski Hey. Thank you for taking the question. Can you unpack what stands out in terms of what types of customers are using AI credits more than others? And then considering the financial framework you laid out at the last Analyst Day through fiscal '26, can you just reconcile what macro we're in today relative to the base case scenario? Thanks, guys. Roy Mann Okay. I'll take the AI one. So what we see now is that with AI blocks, we've released something that is a very core capability is something that you can do. And where we see adopting the most where we have champions that are more tech-oriented or solution-oriented and they are playing with it and use it. What we are doing now is like understand those use cases and then rolling them out and explain more deeply with templates, with use cases to other customers, like what can they use it for and how can they build solutions that really give them value. So it's like any technology. You're starting with the people who adopt it and then you productize it more and more and more and give it in more people's hands. Eliran Glazer Sure. Allan, it's Eliran. I'm now going to take the question on the Investor Day model. So we are still in the base case, best on core performance. We haven't seen anything guided to a weakening macro. And when we see it, we called it out, like we said about our conservative approach to guidance. We do see some improvements to the margins that we have said that we are going to get at the Investor Day. But other than that, we continue with the base case scenario. Operator Rob Oliver, Baird. Rob Oliver Great. Thank you, guys. Good afternoon. Two part question on go to market first. On the Casey George hire. I just would love to hear from you guys, perhaps, Roy. What was it about his background in particular that made him the right fit for you guys. I'm sure you guys certainly had your pick. And then secondly, would just be curious as you have more success moving upmarket how if at all the partner strategy needs to evolve. Thank you very much. Eran Zinman Yeah. Hi, Rob. This is Eran. So I would say a combination of a few things. I've mentioned the enterprise experience at the beginning of the call. So that's definitely was a key part of what we felt like Casey can be a major accelerator to our strategy. Also, I think his previous experience was one in larger enterprise, but also in smaller companies and also in his last company, he managed a large-scale customer, over 50,000 customers. So I think he kind of brings the knowledge of on one hand going upmarket and dealing with large enterprises on the other hand, dealing with large amount of organizations that customers on the semi funnels, large numbers and kind of more of an analytical approach to sales and go to market. So overall, I think for us it was the perfect fit in terms of on one hand, sending the perplexity of managing a large customer base. On the other hand, scaling to large enterprises and doing more top-down selling. I would say also on a personal level, we felt strong connection and felt like it's going to be a great opportunity to work together and come with saw eye-to-eye on what's important for us in terms of managing the team and scaling the team going forward. So that's kind of the high level and as I said, we're very excited for him to join and be part of the team. In terms of partner strategy, so I would say that pretty much didn't change in the last quarter, but overall, I would say a combination of one focus on additional geography that we don't have self presence. And partners help us reach enterprise customers and scale scale our sales operation. They also bring a lot of technical expertise. A lot of our partners are doing professional services to customers. They help with anywhere from data migrations, integration, to help them build solution on top of monday and they offer like [white last] implementation services for customers. And also, we have partners that specialize in specific industries so they can help with specific knowledge on specific limitation for industry. Overall, I would say we continue to invest. Partners is a big part of our go to market motion as a company if anything it become more significant over time. I think Casey sees the same way as we do about partners and potential and we continue to invest in that part of the business going forward. Operator (Operator Instructions) Ladies and gentlemen, that concludes today's call. Thank you all for joining. You may now disconnect. 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
Yahoo
12-05-2025
- Business
- Yahoo
Monday.com (NASDAQ:MNDY) Beats Q1 Sales Targets, Stock Soars
Project management software maker (NASDAQ:MNDY) announced better-than-expected revenue in Q1 CY2025, with sales up 30.1% year on year to $282.3 million. The company expects next quarter's revenue to be around $293 million, close to analysts' estimates. Its non-GAAP profit of $1.10 per share was 56.4% above analysts' consensus estimates. Is now the time to buy Find out in our full research report. Revenue: $282.3 million vs analyst estimates of $276 million (30.1% year-on-year growth, 2.3% beat) Adjusted EPS: $1.10 vs analyst estimates of $0.70 (56.4% beat) Adjusted Operating Income: $40.75 million vs analyst estimates of $26.61 million (14.4% margin, 53.2% beat) The company slightly lifted its revenue guidance for the full year to $1.22 billion at the midpoint from $1.21 billion Operating Margin: 3.5%, up from -2.3% in the same quarter last year Free Cash Flow Margin: 38.8%, up from 27.1% in the previous quarter Customers: 3,444 customers paying more than $50,000 annually Net Revenue Retention Rate: 115%, in line with the previous quarter Market Capitalization: $14.13 billion 'Our strong financial performance and disciplined execution position us well to navigate uncertainties ahead ,' said Eliran Glazer, CFO. Founded in 2014 and named after the dreaded first day of the work week, (NASDAQ:MNDY) is a software-as-a-service platform that helps organizations plan and track work efficiently. Reviewing a company's long-term sales performance reveals insights into its quality. Even a bad business can shine for one or two quarters, but a top-tier one grows for years. Luckily, sales grew at an incredible 42.6% compounded annual growth rate over the last three years. Its growth surpassed the average software company and shows its offerings resonate with customers, a great starting point for our analysis. This quarter, reported wonderful year-on-year revenue growth of 30.1%, and its $282.3 million of revenue exceeded Wall Street's estimates by 2.3%. Company management is currently guiding for a 24.1% year-on-year increase in sales next quarter. Looking further ahead, sell-side analysts expect revenue to grow 23.2% over the next 12 months, a deceleration versus the last three years. Still, this projection is commendable and suggests the market sees success for its products and services. Unless you've been living under a rock, it should be obvious by now that generative AI is going to have a huge impact on how large corporations do business. While Nvidia and AMD are trading close to all-time highs, we prefer a lesser-known (but still profitable) stock benefiting from the rise of AI. Click here to access our free report one of our favorites growth stories. One of the best parts about the software-as-a-service business model (and a reason why they trade at high valuation multiples) is that customers typically spend more on a company's products and services over time. net revenue retention rate, a key performance metric measuring how much money existing customers from a year ago are spending today, was 113% in Q1. This means would've grown its revenue by 12.7% even if it didn't win any new customers over the last 12 months. Trending up over the last year, has a good net retention rate, proving that customers are satisfied with its software and getting more value from it over time, which is always great to see. It was encouraging to see beat analysts' revenue and operating income expectations this quarter. We were also glad its full-year revenue guidance slightly exceeded Wall Street's estimates. On the other hand, its revenue guidance for next quarter was in line. Zooming out, we think this was a solid quarter. The stock traded up 7% to $297.43 immediately following the results. Should you buy the stock or not? If you're making that decision, you should consider the bigger picture of valuation, business qualities, as well as the latest earnings. We cover that in our actionable full research report which you can read here, it's free. 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
