Monday.com Ltd, (NASDAQ: $MNDY) headquartered in Israel, is a software publishing company. The company offers the operational system monday.com Work OS, an open platform designed to democratize software capabilities, enabling organizations to effortlessly create software applications and work management tools tailored to their specific requirements.
The platform seamlessly integrates people with processes and systems, empowering teams to excel in all aspects of their work.
With teams located in Tel Aviv, New York, San Francisco, Miami, Chicago, London, Kiev, and Sydney, monday.com customizes its platform to cater to various business verticals and serves a global customer base.
Why Monday.com Stock Popped Today
Monday.com (MNDY 10.50%) shares surged by 10% as of 3:30 p.m. ET, according to data from S&P Global Market Intelligence, following the work management software company’s announcement of impressive quarterly results.
In the third quarter of 2023, Monday.com reported a 38% year-over-year increase in revenue, reaching $189.2 million. This resulted in non-GAAP (adjusted) earnings of $0.64 per share.
Analysts had anticipated earnings of only $0.21 per share on revenue of $182.5 million, making Monday.com’s performance notably better than expected.
The company’s robust results were attributed to strong revenue retention and high customer demand. The net-dollar retention rate (NDRR) surpassed 110%, indicating that existing customers, on average, increased their spending by 10% on Monday’s solutions after the first year.
Notably, NDRR was even higher for larger customers, reaching 115% for those with over 10 users and for those generating more than $50,000 in annual recurring revenue. In the latter category, Monday.com saw a 57% increase in customers, ending the quarter with 2,077 compared to 1,323 a year ago.
Co-founders and co-CEOs of Monday.com, Roy Mann and Eran Zinman, described it as “another strong quarter” marked by ongoing momentum from their multi-product strategy and robust customer demand.
What’s Next for Monday.com Stock?
After its notable outperformance in the third quarter, Monday.com has revised its full-year 2023 outlook, anticipating revenue in the range of $723 million to $725 million.
This adjustment reflects a growth rate of 39% to 40% from the previous year, up from the earlier guidance of $713 million to $717 million. Notably, analysts had initially projected 2023 revenue to be closer to $715 million.
Once again, Monday.com has demonstrated a clear beat-and-raise performance. Although the stock has seen a nearly 30% increase year to date, it remains approximately 20% below its 52-week high established in July. Given these dynamics, there seems to be ample potential for the stock to continue its outperformance moving forward.
Monday.com Earnings Handily Beat Estimates, Software Stock Jumps
Monday.com (MNDY) released third-quarter financial results, surpassing both earnings and revenue estimates. The software company’s guidance for MNDY stock aligned with expectations, leading to a positive market response.
In the quarter concluding on September 30, the provider of project management software posted an adjusted profit of 64 cents per share. Revenue experienced a notable increase of 38%, reaching $189.2 million.
Analysts had anticipated an adjusted profit of 21 cents and revenue of $182.4 million. In the same period as the previous year, Monday.com reported earnings of 5 cents per share on revenue amounting to $136.9 million.
MNDY Stock: Asana, Smartsheet Rivals
For the ongoing quarter concluding in December, Monday.com has forecasted revenue of $197 million, surpassing estimates of $195 million.
William Blair analyst Arjun Bhatia, in a report, noted, “While the company continues to face challenges in seat-based expansion due to macro and budget pressures, trends seem to be stabilizing. The situation is not improving significantly, but it is also not deteriorating further.”
Bhatia also highlighted that Monday.com addressed investor concerns about disruption risk related to the conflict in Israel, reassuring that the impact on its operations has been minimal.
On the stock market today, MNDY stock surged by 10.5%, closing at $154.83. Before the earnings report, Monday.com stock had already gained 15% in 2023.
Market capitalization of Monday.com (MNDY)
As of November 2023, the market capitalization of monday.com stands at $7.47 billion. According to available data, this positions monday.com as the 1835th most valuable company globally based on market cap.
Market capitalization, often referred to as market cap, represents the total market value of a publicly traded company’s outstanding shares and is a widely used metric to gauge the overall worth of a company.
Revenue for $MNDY
As per the most recent financial reports from monday.com, the company’s current revenue (Trailing Twelve Months) stands at $0.62 billion.
In 2022, the company achieved a revenue of $0.51 billion, reflecting a notable increase compared to the $0.30 billion revenue in 2021.
Revenue represents the overall income generated by a company through the sale of goods or services. It is important to note that unlike earnings, revenue does not involve the subtraction of any expenses.
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