monday.com MNDY reported fourth-quarter 2024 non-GAAP earnings per share of $1.08, which beat the Zacks Consensus Estimate by 38.46% and increased 66.1% from the year-ago quarter.

Find the latest EPS estimates and surprises on Zacks Earnings Calendar.

The company’s net revenues of $268 million rose 32% year over year and beat the Zacks Consensus Estimate by 2.62%.

Quarter Details

In the fourth quarter, MNDY had 1,207 customers with an annual run rate (ARR) of $100,000 or more, which increased 45% year over year. The net dollar retention rate for these customers was 116%.

As of Dec. 31, 2024, the number of paid customers with more than 10 users was 59,214, up 10% from 53,688 as of Dec. 31, 2023. Additionally, the number of paid customers with more than $50,000 in ARR was 3,201, up 39% from 2,295 as of Dec. 31, 2023.

monday.com’s net dollar retention was 112% as customers increased their usage and adopted more products.

Operating Details

MNDY’s adjusted gross margin decreased 100 basis points (bps) on a year-over-year basis to 89%.

Research & development expenses rose 44.4% on a year-over-year basis to $48 million. Research & development, as a percentage of revenues, increased 150 bps to 17.9%.

Sales and marketing expenses rose 16.2% year over year to $127.8 million. Sales and marketing expenses, as a percentage of revenues, decreased 660 bps to 47.7%.

General & administrative expenses increased 33% year over year, reaching $23 million in the reported quarter. General & administrative expenses, as a percentage of revenues, remained stable at 8.6%.

monday.com reported a non-GAAP operating income of $40.3 million compared with $21.2 million in the year-ago quarter.

Balance Sheet & Cash Flow

As of Dec. 31, 2024, MNDY had cash, cash equivalents, restricted cash and marketable securities of $1.41 billion compared with $1.34 billion as of Sept. 30, 2024.

Operating cash flow was $76.7 million in the reported quarter, down from $86.6 million reported in the previous quarter.

Free cash flow during the quarter was $72.7 million compared with $82.4 million in the previous quarter.

Guidance

For the first quarter of 2025, MNDY anticipates revenues between $274 million and $276 million. Non-GAAP operating income is expected in the band of $25-$27 million. 

For 2025, MNDY expects revenues between $1,208 million and $1,221 million. Non-GAAP operating income is expected in the range of $134-$142 million. Free cash flow is expected in the range of $300-$308 million.

Zacks Rank & Stocks to Consider

monday.com currently carries a Zacks Rank #4 (Sell).

Akamai Technologies AKAM, Autohome ATHM and Bandwidth BAND are some better-ranked stocks in the broader Zacks Computer and Technology sector, each carrying a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Akamai Technologies, Autohome and Bandwidth are scheduled to report their respective fourth-quarter 2024 results on Feb. 20.

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