Project and task management software company
Monday.com
—naturally, on Monday—posted better-than-expected results for its latest quarter.
Tel Aviv-based Monday reported fourth-quarter revenue of $202.6 million, up 35% from a year ago. The number surpassed the Wall Street consensus as tracked by FactSet of $198 million, and was ahead of the company’s guidance range of $196 million to $198 million.
Non-GAAP earnings were 65 cents a share in the fourth quarter, nearly twice the Street consensus at 32 cents. Operating income was $21.2 million, well above the guidance range of $7 million to $9 million. Under generally accepted accounting principles, the company earned 24 cents a share.
“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,” CFO Eliran Glazer said in a statement.
Shares of the company fell 11.4% in premarket trading on Monday. For the year through Friday, Monday shares have rallied more than 25%. The stock is up nearly 69% over the last 12 months.
The company, which competes with software companies like
Asana
and
Smartsheet,
posted full-year revenue of $729.7 million, up 41%, and ahead of its guidance range of $723 million to $725 million. Full year operating income of $61.6 million was likewise above the company’s forecast at $47 million to $49 million.
William Blair analyst Arjun Bhatia pointed out in a research note Friday that the company recently unveiled plans to boost pricing on its work management software this month by 13% to 20%, the first increase in five years.
Monday is projecting first-quarter revenue between $207 million and $211 million, which, at the midpoint of the range, is about in line with the Street at $209 million. It forecasts free cash flow of between $56 million and $60 million for the period, above consensus at $47.8 million.
For all of 2024, Monday expects revenue between $926 million and $932 million, at the midpoint of the range a little ahead of consensus at $927.5 million. It projects full-year free cash flow ranging from $200 million to $206 million, with the midpoint above consensus at $200.5 million.
Write to Eric J. Savitz at [email protected]
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