monday.com Shines in Q1 2024 with $216.9 Million in Revenue, Stock Surges
monday.com (NASDAQ: MNDY) has reported a robust performance for the first quarter of 2024, showcasing significant growth across various metrics.
The company’s revenue was $216.9 million, a 34% increase year over year. This impressive growth is attributed to the strong demand for its products, particularly the Monday sales CRM and Monday dev, which are now accessible to all customers.
The number of customers with more than $50,000 in annual recurring revenue (ARR) also grew by 48% year-over-year, reflecting the company’s expanding customer base and increased market penetration.
In addition to revenue growth, monday.com reported record quarterly free cash flow of $89.9 million, a substantial increase from the $38.7 million reported in the same quarter last year. The company’s net cash provided by operating activities was $92.0 million, more than doubling from $42.7 million in Q1 2023.
The co-founders and co-CEOs, Roy Mann and Eran Zinman, expressed their satisfaction with the results, emphasizing the rapid growth and adoption of their new products and the positive impact of recent pricing model adjustments.
monday.com Beats EPS Expectations by $0.21 in Q1, Revenue Beat as Well
When comparing the current quarter’s performance against expectations, monday.com exceeded market forecasts on both earnings and revenue fronts. The company reported a non-GAAP net income per share of $0.64, significantly higher than the expected $0.39. On the revenue side, monday.com generated $216.9 million, surpassing the anticipated $210.64 million.
This outperformance is a testament to the company’s successful execution of its growth strategies and the strong market demand for its products.
Moreover, the company’s GAAP operating loss narrowed to $5.0 million from $22.8 million in the same period last year, while the non-GAAP operating income increased to $21.5 million from a loss of $0.3 million in Q1 2023.
The operating margin also improved, with the GAAP operating margin reaching negative 2%, up from negative 14%, and the non-GAAP operating margin hitting 10%, compared to 0% last year. These improvements highlight the company’s effective cost management and operational efficiency.
monday.com Expects Full Year 2024 Total Revenue Between $942 Million and $948 Million
Looking ahead, monday.com has provided optimistic guidance for the second quarter and the full fiscal year 2024. For Q2, the company expects total revenue to be in the range of $226 million to $230 million, representing a year-over-year growth of 29% to 31%. Non-GAAP operating income is projected to be between $17 million and $21 million, with an operating margin of 8% to 9%. The company also anticipates free cash flow of $47 million to $51 million, with a free cash flow margin of 21% to 22%.
For the full year 2024, monday.com forecasts total revenue to be between $942 million and $948 million, reflecting a year-over-year growth of 29% to 30%. The non-GAAP operating income is expected to range from $77 million to $83 million, with an operating margin of 8% to 9%.
The projected free cash flow for the year is between $238 million and $244 million, with a free cash flow margin of 25% to 26%. These projections underscore the company’s confidence in its growth trajectory and its ability to generate substantial cash flow.
Disclaimer: The author does not hold or have a position in any securities discussed in the article.
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