Group 1 - Michael Wiggins De Oliveira is an inflection investor, focusing on buying undervalued companies at pivotal moments when their business narratives are shifting towards increased profitability [1] - The investment strategy emphasizes technology and the Great Energy Transition, including uranium, with a concentrated portfolio of approximately 15 to 20 stocks and an average holding period of 18 months [1] - Michael has over 10 years of experience in analyzing companies, particularly in the tech and energy sectors, and has built a following of over 40,000 on Seeking Alpha [2] Group 2 - Michael leads the investing group Deep Value Returns, which offers insights through a concentrated portfolio of value stocks, timely updates on stock picks, and a weekly webinar for live advice [2] - The Deep Value Returns group provides support for both new and experienced investors, fostering an active and vibrant community accessible via chat [2]

Core Insights - Monday.com shares surged 35.2% following a strong earnings report, indicating positive market reaction to the company's financial performance [1] Financial Performance - Q4 revenues increased by 32% year over year, reaching $268 million, while adjusted earnings per diluted share rose from $0.65 to $1.08, surpassing Street's consensus estimates of $0.79 per share [2] - Adjusted operating margins improved from 10% to 15%, reflecting enhanced profitability [2] - Free cash flows reached $72.7 million, exceeding the previous year's figure by more than 31% [4] Customer Growth - The company added approximately 20,000 customers in Q4, bringing the total customer count to 245,000 [3] Retention and Expansion - Net dollar retention stood at 112%, indicating that average contract renewals were 12% more lucrative than expiring agreements [4] Technological Advancements - Monday.com is integrating artificial intelligence functions into its cloud-based services, with the AI-based customer service solution "monday service" showing strong cross-selling activity [5] Stock Valuation - The stock is trading about 11% below its all-time highs, established before the inflation crisis in 2021, but is considered expensive at 97 times trailing earnings and 17 times sales [6]

Core Insights - Monday.com reported strong Q4 2024 results, exceeding both analyst and management forecasts with significant revenue growth and earnings per share [1][2] Financial Performance - The company achieved an EPS of $1.08, surpassing the expected $0.79, and revenue reached $268 million, exceeding the predicted $261 million [2][7] - Year-over-year revenue growth was 32.3%, up from $202.6 million in Q4 2023 [3] - Non-GAAP operating income was $40.3 million, a 90.1% increase from $21.2 million in Q4 2023 [3] - Free cash flow grew to $72.7 million, a 31.2% increase from $55.4 million in the previous year [3][8] - The Non-GAAP operating margin improved from 10% to 15%, indicating better cost management [8] Business Overview - Monday.com specializes in a Work OS platform that allows businesses to create custom applications for various operations, enhancing flexibility and customization [4] - Recent strategies have focused on product innovations and operational efficiencies, which are essential for revenue growth and customer retention [5] Product Developments - The company launched the monday service for help-desk operations, gaining notable traction [6] - Innovations in artificial intelligence, such as AI Blocks and Digital Workforce tools, are enhancing user experience and transforming workflows [6] Customer Metrics - There was a year-over-year growth of 39% in clients contributing over $50,000 and 45% in those contributing over $100,000 in annual recurring revenue [9] - Challenges in acquiring new customers were noted, attributed to broader economic pressures [9] Future Outlook - Management projects Q1 2025 revenue between $274 million and $276 million, indicating continued growth but at a slower pace [10] - Strategic priorities for fiscal year 2025 include enhancing AI capabilities and scaling international operations, with a focus on sustainable growth and profitability [11]

Core Insights - Shares of Monday.com (MNDY) surged nearly 30% following the release of better-than-expected fourth-quarter results, driven by strong demand for its artificial intelligence (AI) solutions [1][5] - The company reported adjusted earnings per share (EPS) of $1.08, which is approximately 40% higher than analyst estimates, and a revenue increase of 32% year-over-year to $268.0 million, surpassing forecasts [1][5] Financial Performance - For the full year, Monday.com anticipates revenue between $1.208 billion and $1.221 billion, slightly above the Visible Alpha forecast of $1.207 billion [2] - The fourth-quarter results exceeded both profit and sales estimates, attributed to the success of its AI offerings [5] Product Development - Monday.com launched a new AI product named AI Vision, aimed at providing customers with a competitive edge and enhancing business processes without additional resource allocation [3] - The company also announced the full release of its AI Enterprise Service Management Platform, which has completed beta testing [3] Leadership Insights - Co-founders and co-CEOs Roy Mann and Eran Zinman highlighted that the company's success in 2024 is due to rapid product innovation and effective go-to-market strategies, with plans to intensify AI efforts in 2025 [2][5] Market Performance - Following the announcement, Monday.com shares reached their highest level in over three years [4]

Core Viewpoint - Monday.com reported quarterly earnings of $1.08 per share, exceeding the Zacks Consensus Estimate of $0.78 per share, and showing an increase from $0.65 per share a year ago, representing an earnings surprise of 38.46% [1][2] Financial Performance - The company achieved revenues of $267.98 million for the quarter ended December 2024, surpassing the Zacks Consensus Estimate by 2.62%, and up from $202.57 million year-over-year [2] - Over the last four quarters, Monday.com has consistently surpassed consensus EPS estimates [2] Stock Performance - Monday.com shares have increased approximately 9.7% since the beginning of the year, compared to a 2.5% gain in the S&P 500 [3] Future Outlook - The current consensus EPS estimate for the upcoming quarter is $0.67 on revenues of $272.71 million, and for the current fiscal year, it is $3.44 on revenues of $1.2 billion [7] - The estimate revisions trend for Monday.com is currently unfavorable, resulting in a Zacks Rank 4 (Sell) for the stock, indicating expected underperformance in the near future [6] Industry Context - The Internet - Software industry, to which Monday.com belongs, is currently ranked in the top 28% of over 250 Zacks industries, suggesting a favorable environment for stocks in this sector [8]

Financial Highlights - The company's Q4 FY24 revenue reached $268 million, representing a 32% year-over-year growth[5] - The number of customers with over $50,000 in ARR increased by 39% year-over-year, reaching 3,201[6] - The net dollar retention rate for customers with over $50,000 in ARR was 115%[6] - The company achieved a gross margin of 89%[6] - Free cash flow was $73 million, representing 27% of revenue[6] Customer Base Growth - The total number of customers reached 245,000 in FY24, a 22% CAGR from 2019 to 2024[17, 19] - Customers with 10+ users grew by 45% year-over-year[24] - Customers with $100,000+ ARR grew by 45% year-over-year[24] Financial Performance - The company's annual revenue for FY24 was $730 million[36] - The company's adjusted free cash flow for FY24 was $295.8 million, representing a 30% margin[52] - Non-GAAP operating margin was 14% for FY24[62]

Group 1 - monday.com recently experienced a contraction in its stock price, presenting a potential buying opportunity [1] - The company has a strong strategy and produces impressive gross margins, positioning it favorably against industry leaders [1] - The focus is primarily on long-term investments in technology stocks, indicating a strategic approach to investment [1]

Core Viewpoint - Monday.com (MNDY) is expected to report strong revenue growth for the fourth quarter of fiscal 2024, with a consensus estimate of $261.14 million, reflecting a year-over-year increase of 28.91% [1]. Revenue and Earnings Estimates - The company anticipates total revenues between $260 million and $262 million, indicating a year-over-year growth of 28-29% [1]. - The consensus estimate for MNDY's earnings per share (EPS) is steady at 78 cents, representing a 20% increase from the previous year [2]. Recent Performance and Surprises - In the last reported quarter, Monday.com achieved an earnings surprise of 39.34%, consistently beating the Zacks Consensus Estimate over the last four quarters, with an average surprise of 71.62% [3]. Factors Influencing Upcoming Results - The company has implemented price increases that are expected to contribute approximately 200 basis points to net dollar retention rates in fiscal 2024 [6]. - New pricing has been rolled out to about 50% of customers, with an anticipated total impact of $80 million between fiscal 2024 and 2026 [7]. - The enterprise segment is a focus area, with plans to accelerate sales hiring in response to previous softness in customer additions [7]. Product Expansion and Growth Drivers - Product expansion remains a key growth driver, with the monday service offering expected to launch broadly by early 2025 [8]. - The monday CRM has shown strong growth, with accounts reaching 24,735 in the third quarter, up 124% year over year [9]. - AI capabilities on the platform have increased by more than 250% quarter over quarter, although monetization is not expected to significantly impact fourth-quarter results [10]. Operating Efficiency and Financial Guidance - The company is guiding for fourth-quarter non-GAAP operating income between $29 million and $31 million, with a margin of 11-12%, and free cash flow of $63-$66 million, representing a margin of 24-25% [10]. Key Metrics and Analyst Focus - Analysts will focus on net dollar retention rates (111% in the third quarter), enterprise customer additions, and progress in cross-selling newer products [11]. Stock Performance and Valuation - MNDY shares have gained 25.1% over the past six months, underperforming the Zacks Internet - Software industry's appreciation of 44.3% [12]. - The stock is considered to have a stretched valuation, with a Price/Sales ratio of 10.02X compared to the industry average of 3.29X [16]. Competitive Landscape - The company faces competition from tech giants like Asana and Atlassian, which are actively enhancing their project and work management solutions [14]. Challenges and Considerations - Potential headwinds include macroeconomic uncertainty affecting enterprise spending and sales cycles, as well as slower growth in the developer-focused product segment [13]. - Leadership changes, including the appointment of a new COO and the departure of the CRO, may impact near-term execution [10].

Stock Performance - Monday com (MNDY) closed at $248 90, reflecting a -1 91% shift from the previous trading day, lagging behind the S&P 500's daily gain of 0 53%, the Dow's gain of 0 93%, and the Nasdaq's increase of 0 22% [1] - Shares of Monday com gained 8 07% in the past month, outperforming the Computer and Technology sector's gain of 3 02% and the S&P 500's gain of 2 69% [2] Earnings and Revenue Expectations - Monday com is scheduled to release its earnings on February 10, 2025, with analysts expecting earnings of $0 78 per share, marking a year-over-year growth of 20% [3] - The company's quarterly revenue is expected to be $261 14 million, up 28 91% from the year-ago period [3] Analyst Estimates and Revisions - Recent changes to analyst estimates for Monday com reflect the near-term business trends, with upward revisions indicating positivity towards the company's business operations and profitability [4] - The Zacks Consensus EPS estimate has decreased by 4 52% over the last 30 days, and Monday com currently holds a Zacks Rank 4 (Sell) [6] Valuation Metrics - Monday com has a Forward P/E ratio of 73 06, which is a premium compared to the industry average of 29 37 [7] - The company's PEG ratio is 1 72, lower than the Internet - Software industry average of 2 27 [8] Industry Overview - The Internet - Software industry, part of the Computer and Technology sector, holds a Zacks Industry Rank of 38, placing it within the top 16% of over 250 industries [9] - The top 50% rated industries outperform the bottom half by a factor of 2 to 1 [9]

Monday.com (MNDY) shares have gained 10.4% in the trailing six-month period compared with the Zacks Computer & Technology sector’s return of 14.3% and the Zacks Internet - Software industry’s rise of 30.3%.MNDY shares have also underperformed its industry peer, BILL Holdings (BILL) which has gained 80.7% over the trailing six-months.The underperformance can be attributed to macroeconomic pressure and stiff competition from tech giants like Asana (ASAN) and Atlassian (TEAM) . These companies are making stron ...