Monday.com Reports Strong Q4 2023 Earnings, Exceeds Expectations
Monday.com, the Tel Aviv-based project and task management software company, has reported better-than-expected earnings for the fourth quarter of 2023. The company’s revenue reached $202.6 million, representing a 35% increase compared to the previous year.
The strong performance by Monday.com has surpassed both the Wall Street consensus and the company’s own guidance range. Its non-GAAP earnings per share were 65 cents, almost double the Street consensus at 32 cents. The operating income for the quarter stood at $21.2 million, well above the guidance range of $7 million to $9 million. Under generally accepted accounting principles (GAAP), the company earned 24 cents per share.
Monday.com’s Chief Financial Officer (CFO) expressed confidence in the company’s ability to sustain its momentum and continue its growth trajectory in the coming years. The CFO stated, “While economic and geopolitical challenges remain, we are highly confident in our ability to carry this momentum into 2024 and beyond, as we continue to focus on driving top-line growth and building market share.”
This positive news has had a significant impact on Monday.com’s stock, which has surged over 25% year-to-date and nearly 69% over the past 12 months. The company’s full-year revenue for 2023 reached $729.7 million, showing a 41% increase compared to the previous year and surpassing its guidance range of $723 million to $725 million.
To further enhance its performance, Monday.com recently announced its plans to increase pricing on its work management software by 13% to 20%. This marks the first price increase in five years and reflects the company’s confidence in the value of its product and its growing market share.
Looking ahead, Monday.com projects a first-quarter revenue between $207 million and $211 million, which aligns with the Street’s expectations. The company also forecasts a free cash flow of between $56 million and $60 million for the period, surpassing consensus estimates. For the full year 2024, Monday.com expects revenue between $926 million and $932 million, slightly ahead of consensus. Its projected full-year free cash flow is in the range of $200 million to $206 million, with the midpoint surpassing consensus estimates.
Analyst comment
Positive news. The market will likely respond positively to Monday.com’s better-than-expected earnings and revenue growth. The company’s stock has already seen a significant increase, and with plans to increase pricing and strong projections for future revenue and cash flow, the market is likely to continue to view Monday.com favorably.
