monday.com Reports Strong First-Quarter Results, Surpassing Expectations

monday.com (NASDAQ: MNDY) has reported a robust start to 2025, showcasing significant financial growth and exceeding market expectations for the first quarter. The company has achieved notable gains in revenue and operating income, setting the stage for a promising year ahead.

monday.com Outperforms EPS and Revenue Expectations

The first quarter of 2025 has proven to be a remarkable period for monday.com, with the company reporting revenue of $282.3 million. This figure represents a substantial 30% increase compared to the same quarter last year. The software company’s performance has exceeded the market’s expectations, which anticipated revenue of $275.61 million. This impressive revenue growth is attributed to the company’s strategic focus on expanding its multi-product platform and enhancing operational efficiency.

Moreover, monday.com achieved record operating income on both a GAAP and non-GAAP basis. The GAAP operating income was reported at $9.8 million, a significant improvement from the previous year’s loss of $5.0 million. The non-GAAP operating income also showed a strong increase, reaching $40.8 million compared to $21.5 million in Q1 2024. The company’s operating margins have improved as well, with a GAAP operating margin of 3% and a non-GAAP margin of 14%. These figures indicate the company’s effective cost management and the successful execution of its business strategies.

In terms of earnings per share (EPS), monday.com reported a GAAP basic EPS of $0.54 and a diluted EPS of $0.52, compared to $0.14 in the previous year. On a non-GAAP basis, the basic EPS was $1.14, and the diluted EPS was $1.10, both of which surpassed the market’s expectation of $0.7029. This growth in EPS reflects the company’s enhanced profitability and its ability to generate higher returns for shareholders.

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monday.com Provides Optimistic Guidance for Q2 FY’25

Looking ahead, monday.com has provided an optimistic financial outlook for the second quarter and the full year 2025. For Q2, the company anticipates revenue between $292 million and $294 million, which would represent a year-over-year growth of 24% to 25%. The non-GAAP operating income is expected to range from $32 million to $34 million, with an operating margin of 11% to 12%.

For the full year 2025, monday.com forecasts total revenue to be between $1,220 million and $1,226 million, indicating a year-over-year growth of 25% to 26%. The company also expects non-GAAP operating income to range from $144 million to $150 million, with an operating margin of approximately 12%. Additionally, the adjusted free cash flow is projected to be between $310 million and $316 million, with a margin of 25% to 26%.

The company’s leadership has expressed confidence in navigating potential challenges, emphasizing their commitment to innovation and strategic investments. With the recent launch of new enterprise capabilities and AI-powered features, monday.com is well-positioned to capitalize on emerging market trends and expand its customer base. The company’s strategic initiatives and financial discipline are expected to drive sustainable growth and deliver long-term value to stakeholders.

Disclaimer: The author does not hold or have a position in any securities discussed in the article. All stock prices were quoted at the time of writing.