Monday Crushes Expectations and Delivers Strong Guidance; Stock Soars

Monday.com delivered a blowout Q4 2024 earnings report, posting $268 million in revenue and $1.08 in earnings per share (EPS)—well above analyst expectations of $261.3 million in revenue and $0.79 EPS.

The company’s 2025 outlook also impressed, with projected revenue between $1.208 billion and $1.221 billion (midpoint: $1.214 billion), exceeding Wall Street’s $1.21 billion estimate. For Q1 2025, Monday forecasts $274M-$276M in revenue, ahead of analysts' $273.9M expectation. Additionally, the company expects 2025 operating income between $134M-$142M (11%-12% margin) and free cash flow of $300M-$308M.

Following these results, Monday’s stock is surging in pre-market trading. Just ten days ago, the company announced plans to hire 400 employees in Israel—a move that hinted at strong earnings ahead.

• Monday Soars 30%: "We'll Keep Growing Through Existing Customers and AI"

Key Earnings Highlights

Q4 2024 Non-GAAP operating income: $40.3M, up from $21.2M in Q4 2023. Operating margin: 15%, compared to 10% last year. Net cash from operations: $76.7M vs. $58.5M in Q4 2023. Free cash flow: $72.7M, up from $55.4M in Q4 2023.

For full-year 2024, Monday reported:

Revenue: $972M, a 33% YoY increase, beating the $965.6M consensus. Non-GAAP operating income: $132.4M, up from $61.6M in 2023. Operating margin: 14%, compared to 8% in 2023. EPS: $3.50, exceeding the $3.20 analyst estimate, and up from $1.85 in 2023.

The company also reported a 112% Net Dollar Retention rate and solid customer growth: Customers with 10+ users: 59,214 (+10%), Customers with $50K+ ARR: 3,201 (+39%), Customers with $100K+ ARR: 1,207 (+45%).

"2024 was a remarkable year for Monday, marked by accelerated innovation, new product development, and successful marketing execution, which drove strong demand across organizations of all sizes," said Roy Mann and Eran Zinman, co-CEOs of Monday.com.

עוד תכניות

"We are proud to expand our product offerings with Monday Service, which has already gained rapid adoption among both existing and new customers. In 2025, we will significantly increase our AI development efforts, integrating AI Blocks and launching Digital Workforce, a new framework powered by AI agents. We believe AI will be a game-changer—helping our customers streamline workflows and scale faster than ever before.

"Our 2024 results validate our commitment to sustainable, efficient growth, even in a dynamic macroeconomic environment."

Eliran Glazer, CFO of Monday.com, added: "This year, we achieved record operating profit (GAAP and non-GAAP), record free cash flow, and surpassed $1 billion in ARR for the first time. We enter 2025 with strong confidence in our growth and expansion opportunities."

Monday Refuses to Play the "Earnings Management" Game

Despite consistently strong results, Monday faced sell-offs in previous quarters because investors felt its numbers, while solid, didn't beat expectations "the right way."

As we previously reported, some Wall Street companies manipulate earnings guidance, subtly shifting profits between quarters or issuing lower forecasts to ensure an "easy beat." Monday refuses to play that game.

In an earlier interview, CFO Eliran Glazer acknowledged that some companies artificially smooth earnings, but said: "That can lead to dangerous territory." As a result, Monday has faced market punishment in the past for its transparency. But this time, investors are rewarding the company, sending the stock soaring in pre-market trading.

With its pre-market surge, Monday.com is now the sixth-largest Israeli company on Wall Street, boasting a $12.88 billion market cap. If the gains hold during regular trading, Monday could surpass Mobileye and Elbit Systems, climbing to fourth place—trailing only CyberArk, Teva, and Check Point in market value.