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monday.com (MNDY - Free Report) reported second-quarter 2024 non-GAAP earnings per share of 94 cents, which increased 129.2% from the year-ago quarter and beat the Zacks Consensus Estimate by 74.07%.
The company’s net revenues of $236.11 million rose 34% year over year and beat the Zacks Consensus Estimate by 3.57%.
In the second quarter, MNDY had 1,009 customers with an annual run rate (ARR) of $100,000 or more, which increased 49% year over year. The net dollar retention rate for these customers was 114%.
As of Jun 30, 2024, the number of paid customers with more than 10 users was 57,203, up 15% from 49,936 as of Jun 30, 2023. Additionally, the number of paid customers with more than $50,000 in ARR was 2,713, up 43% from 1,892 as of Jun 30, 2023.
monday.com’s net dollar retention was 110% as customers increased their usage and adopted more products.
The company closed the largest deal in MNDY's history with a multinational healthcare company, expanding its largest seat count to 80,000 seats.
Operating Details
MNDY’s adjusted gross margin increased 100 basis points (bps) on a year-over-year basis to 91%.
Research & development expenses rose 32.1% on a year-over-year basis to $36.9 million. Research & development, as a percentage of revenues, decreased 30 bps to 15.6%.
Sales and marketing expenses rose 22.2% year over year to $120.7 million. Sales and marketing expenses, as a percentage of revenues, decreased 510 bps to 51.1%.
General & administrative expenses increased 24.1% year over year, reaching $18.2 million in the reported quarter. General & administrative expenses, as a percentage of revenues, contracted 60 bps to 7.7%.
monday.com reported a non-GAAP operating income of $38.4 million compared with $16.6 million in the year-ago quarter.
Balance Sheet & Cash Flow
As of Jun 30, 2024, MNDY had cash, cash equivalents, restricted cash and marketable securities of $1.29 billion compared with $1.11 billion as of Mar 31, 2024.
Operating cash flow was $55.8 million in the reported quarter, down from $92 million reported in the previous quarter.
Free cash flow during the quarter was $50.8 million compared with $89.9 million in the previous quarter.
Guidance
For the third quarter of 2024, MNDY anticipates revenues between $243 million and $247 million. Non-GAAP operating income is expected in the band of $19-$23 million. Free cash flow is expected in the range of $70-$74 million.
For 2024, MNDY expects revenues between $956 million and $961 million. Non-GAAP operating income is expected in the range of $100-$105 million. Free cash flow is expected in the range of $270-$275 million.
Zacks Rank & Stocks to Consider
Currently, monday.com carries a Zacks Rank #3 (Hold).
Image: Bigstock
monday.com (MNDY) Q2 Earnings Beat Estimates, Revenues Rise Y/Y
monday.com (MNDY - Free Report) reported second-quarter 2024 non-GAAP earnings per share of 94 cents, which increased 129.2% from the year-ago quarter and beat the Zacks Consensus Estimate by 74.07%.
The company’s net revenues of $236.11 million rose 34% year over year and beat the Zacks Consensus Estimate by 3.57%.
monday.com Ltd. Price, Consensus and EPS Surprise
monday.com Ltd. price-consensus-eps-surprise-chart | monday.com Ltd. Quote
Quarter Details
In the second quarter, MNDY had 1,009 customers with an annual run rate (ARR) of $100,000 or more, which increased 49% year over year. The net dollar retention rate for these customers was 114%.
As of Jun 30, 2024, the number of paid customers with more than 10 users was 57,203, up 15% from 49,936 as of Jun 30, 2023. Additionally, the number of paid customers with more than $50,000 in ARR was 2,713, up 43% from 1,892 as of Jun 30, 2023.
monday.com’s net dollar retention was 110% as customers increased their usage and adopted more products.
The company closed the largest deal in MNDY's history with a multinational healthcare company, expanding its largest seat count to 80,000 seats.
Operating Details
MNDY’s adjusted gross margin increased 100 basis points (bps) on a year-over-year basis to 91%.
Research & development expenses rose 32.1% on a year-over-year basis to $36.9 million. Research & development, as a percentage of revenues, decreased 30 bps to 15.6%.
Sales and marketing expenses rose 22.2% year over year to $120.7 million. Sales and marketing expenses, as a percentage of revenues, decreased 510 bps to 51.1%.
General & administrative expenses increased 24.1% year over year, reaching $18.2 million in the reported quarter. General & administrative expenses, as a percentage of revenues, contracted 60 bps to 7.7%.
monday.com reported a non-GAAP operating income of $38.4 million compared with $16.6 million in the year-ago quarter.
Balance Sheet & Cash Flow
As of Jun 30, 2024, MNDY had cash, cash equivalents, restricted cash and marketable securities of $1.29 billion compared with $1.11 billion as of Mar 31, 2024.
Operating cash flow was $55.8 million in the reported quarter, down from $92 million reported in the previous quarter.
Free cash flow during the quarter was $50.8 million compared with $89.9 million in the previous quarter.
Guidance
For the third quarter of 2024, MNDY anticipates revenues between $243 million and $247 million. Non-GAAP operating income is expected in the band of $19-$23 million. Free cash flow is expected in the range of $70-$74 million.
For 2024, MNDY expects revenues between $956 million and $961 million. Non-GAAP operating income is expected in the range of $100-$105 million. Free cash flow is expected in the range of $270-$275 million.
Zacks Rank & Stocks to Consider
Currently, monday.com carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the broader Computer and Technology sector are Bilibili (BILI - Free Report) , Cisco Systems (CSCO - Free Report) and Applied Materials (AMAT - Free Report) , 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.
Bilibili’s shares have gained 10.8% year to date. BILI is set to report second-quarter 2024 results on Aug 22.
Shares of Cisco Systems have plunged 11.2% year to date. CSCO is slated to post fourth-quarter fiscal 2024 results on Aug 14.
Shares of Applied Materials have gained 19.1% year to date. AMAT is set to release third-quarter fiscal 2024 results on Aug 15.