Core Viewpoint - Monday.com (MNDY) has experienced a significant decline in stock performance, returning -28.6% over the past month, compared to the S&P 500's -7.3% and the Zacks Internet - Software industry's -17.8% [2] Earnings Estimate Revisions - The current quarter's earnings estimate for Monday.com is $0.68 per share, reflecting an increase of +11.5% year-over-year, with the consensus estimate remaining unchanged over the last 30 days [5] - The consensus earnings estimate for the current fiscal year is $3.33, indicating a year-over-year decline of -4.9%, with a significant change of -46.2% over the last month [5] - For the next fiscal year, the consensus earnings estimate is $4.31, showing a year-over-year increase of +29.4%, with a slight change of +2.4% over the past month [6] Revenue Growth Forecast - The consensus sales estimate for the current quarter is $277.66 million, indicating a year-over-year growth of +28% [9] - The sales estimates for the current and next fiscal years are $1.22 billion and $1.51 billion, respectively, reflecting changes of +25% and +24% [9] Last Reported Results and Surprise History - In the last reported quarter, Monday.com achieved revenues of $267.98 million, representing a year-over-year increase of +32.3%, with an EPS of $1.08 compared to $0.65 a year ago [10] - The reported revenues exceeded the Zacks Consensus Estimate of $261.14 million by +2.62%, and the EPS surprise was +38.46% [11] - The company has consistently beaten consensus EPS and revenue estimates in the trailing four quarters [11] Valuation - Monday.com is graded F on the Zacks Value Style Score, indicating it is trading at a premium compared to its peers [15] - Valuation multiples such as price-to-earnings (P/E), price-to-sales (P/S), and price-to-cash flow (P/CF) are essential for assessing whether the stock is overvalued, fairly valued, or undervalued [13][14] Conclusion - The Zacks Rank 3 suggests that Monday.com may perform in line with the broader market in the near term, despite the current market buzz [16]

Core Viewpoint - monday.com (MNDY) reported strong financial results for the fourth quarter of 2024, with significant growth in earnings and revenues, indicating robust business performance and customer retention. Financial Performance - MNDY's non-GAAP earnings per share for Q4 2024 were $1.08, exceeding the Zacks Consensus Estimate by 38.46% and increasing 66.1% year-over-year [1] - The company's net revenues reached $268 million, a 32% year-over-year increase, and also surpassed the Zacks Consensus Estimate by 2.62% [2] Customer Metrics - In Q4 2024, MNDY had 1,207 customers with an annual run rate (ARR) of $100,000 or more, marking a 45% year-over-year increase [3] - The net dollar retention rate for these customers was 116%, indicating strong customer engagement and product adoption [4] - The total number of paid customers with more than 10 users rose to 59,214, a 10% increase from the previous year [3] Operating Expenses - MNDY's adjusted gross margin decreased by 100 basis points year-over-year to 89% [5] - Research and development expenses increased by 44.4% year-over-year to $48 million, representing 17.9% of revenues [5] - Sales and marketing expenses rose 16.2% year-over-year to $127.8 million, but as a percentage of revenues, they decreased by 660 basis points to 47.7% [5] Income and Cash Flow - The company reported a non-GAAP operating income of $40.3 million, up from $21.2 million in the same quarter last year [6] - As of December 31, 2024, MNDY had cash and equivalents totaling $1.41 billion, an increase from $1.34 billion as of September 30, 2024 [7] - Operating cash flow for the quarter was $76.7 million, down from $86.6 million in the previous quarter, while free cash flow was $72.7 million compared to $82.4 million previously [7] Guidance - For Q1 2025, MNDY expects revenues between $274 million and $276 million, with non-GAAP operating income projected between $25 million and $27 million [8] - For the full year 2025, the company anticipates revenues between $1,208 million and $1,221 million, with non-GAAP operating income expected in the range of $134 million to $142 million [8]

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]

Q4 FY24 Earnings Safe harbor This presentation has been prepared by monday.com Ltd. ("we," "us," "our," "monday.com" or the "Company"). This presentation (including oral commentary that accompanies this presentation) contains "forward-looking statements" within the meaning of the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995, including but not limited to, statements regarding our financial outlook and market positioning. These forward- looking statements are made as of the ...

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].