monday.com(US:MNDY)2024-08-12 11:00Financial Performance - First quarter revenue reached $216.9 million, representing a 34% year-over-year growth[1] - GAAP operating loss improved to $5.0 million from a loss of $22.8 million in Q1 2023, with a GAAP operating margin of negative 2% compared to negative 14% in the prior year[5] - Non-GAAP operating income was $21.5 million, a significant turnaround from a loss of $0.3 million in Q1 2023, resulting in a non-GAAP operating margin of 10%[5] - For Q1 2024, the net income was $7,078, compared to a net loss of $14,667 in Q1 2023, indicating a significant improvement in profitability[23] - Non-GAAP net income for Q1 2024 was $31,716,000, compared to $7,233,000 in Q1 2023, indicating a significant increase of 338%[24] - GAAP net income per share for Q1 2024 was $0.14, compared to a loss of $(0.31) per share in Q1 2023, indicating a strong recovery[24] - Non-GAAP net income per share, diluted, for Q1 2024 was $0.61, up from $0.14 in Q1 2023, highlighting substantial growth in earnings per share[24] Customer Metrics - The number of customers with more than $50,000 in annual recurring revenue (ARR) increased by 48% year-over-year, totaling 2,491 customers[5] - The net dollar retention rate was 110%, with higher retention rates of 114% for customers with more than 10 users and $50,000 in ARR[5] - The number of paid customers with 10+ users grew by 18% year-over-year, reaching 55,515[5] Cash Flow and Liquidity - Free cash flow reached $89.9 million, up from $38.7 million in Q1 2023, indicating strong cash generation capabilities[5] - Net cash provided by operating activities increased to $91,955 in Q1 2024, up from $42,728 in Q1 2023, reflecting strong operational performance[23] - Free cash flow for Q1 2024 was $89,894,000, significantly higher than $38,682,000 in Q1 2023, resulting in a free cash flow margin of 41% compared to 24%[27] Revenue Projections - For Q2 2024, the company expects revenue between $226 million and $230 million, reflecting a year-over-year growth of 29% to 31%[5] - For the full year 2024, total revenue is projected to be between $942 million and $948 million, with a year-over-year growth of 29% to 30%[12] Operational Efficiency - GAAP gross profit for Q1 2024 was $193,459,000, up from $145,242,000 in Q1 2023, representing a year-over-year increase of 33%[24] - GAAP operating loss improved to $(5,022,000) in Q1 2024 from $(22,752,000) in Q1 2023, reflecting a positive trend in operational efficiency[24] - Non-GAAP operating income for Q1 2024 was $21,521,000, a turnaround from a loss of $(293,000) in Q1 2023, showcasing improved profitability[24] Balance Sheet Highlights - Cash and cash equivalents at the end of Q1 2024 were $1,224,544, an increase from $935,565 at the end of Q1 2023[23] - Deferred revenue rose to $35,704 in Q1 2024, compared to $30,966 in Q1 2023, suggesting growth in customer commitments[23] - The total assets as of March 31, 2024, were $1,390,764, compared to $1,275,656 as of March 31, 2023, indicating overall growth in the company's asset base[22] - Total liabilities as of March 31, 2024, were $534,915, compared to $546,215 as of March 31, 2023, reflecting a decrease in overall liabilities[22] Shareholder Engagement - Share-based compensation for Q1 2024 was $26,543, up from $22,459 in Q1 2023, indicating increased investment in employee incentives[23] - Proceeds from the exercise of share options and employee share purchase plan amounted to $8,708 in Q1 2024, compared to $5,086 in Q1 2023, showing increased employee participation[23] Capital Expenditure - The company invested $1,460 in property and equipment during Q1 2024, down from $3,561 in Q1 2023, indicating a potential shift in capital expenditure strategy[23] Market Growth - Revenue growth as reported for Q1 2024 was 34%, down from 50% in Q1 2023, while FX adjusted revenue growth was 34% compared to 51% in the prior year[26] - The weighted-average ordinary shares used in calculating Non-GAAP net income per share, diluted, increased to 52,020,163 in Q1 2024 from 50,838,410 in Q1 2023[24]