monday.com(MNDY) - 2023 Q1 - Quarterly Report

Financial Performance - Fiscal year 2022 revenue reached $519.0 million, representing a 68% year-over-year growth (71% FX-adjusted) [1] - Fourth quarter revenue was $149.9 million, a 57% increase year-over-year (60% FX-adjusted) [5] - Revenue for Q4 2022 was $149.9 million, a 57% increase from $95.5 million in Q4 2021 [21] - Gross profit for the year ended December 31, 2022, was $452.5 million, up from $269.1 million in 2021, representing a 68% increase [21] - Revenue growth for the year ended December 31, 2022, was reported at 68%, with an adjusted growth of 71% after accounting for foreign exchange rates [28] - Revenue growth for the three months ended September 30, 2022, was 65%, with an adjusted growth of 68% [28] - Revenue growth for the three months ended June 30, 2022, was reported at 75%, with an adjusted growth of 77% [28] Customer Metrics - The number of customers with more than $50,000 in annual recurring revenue (ARR) increased by 86% year-over-year, totaling 1,474 customers [11] - The net dollar retention rate was over 120%, with rates exceeding 130% for customers with more than 10 users and 135% for those with over $50,000 in ARR [11] Operating Income and Loss - GAAP operating loss for fiscal year 2022 was $152.0 million, an improvement from a loss of $126.1 million in fiscal 2021, with a negative operating margin of 29% [5] - Non-GAAP operating income for Q4 was $14.3 million, compared to a loss of $9.9 million in Q4 2021, resulting in a positive operating margin of 10% [5] - Operating loss for Q4 2022 was $10.1 million, an improvement from a loss of $31.6 million in Q4 2021 [21] - The company reported a net loss attributable to ordinary shareholders for the year 2022 was $136.9 million, compared to a loss of $137.5 million in 2021 [21] - The company reported a GAAP operating loss of $10,100 thousand for the three months ended December 31, 2022, compared to an operating loss of $31,598 thousand in the same period of 2021 [24] - Non-GAAP net income for the three months ended December 31, 2022, was $22,202 thousand, a recovery from a loss of $11,716 thousand in the same period of 2021 [25] Cash Flow and Assets - Net cash provided by operating activities for fiscal year 2022 was $27.1 million, with adjusted free cash flow of $8.1 million [5] - Cash provided by operating activities for the three months ended December 31, 2022, was $34,081 thousand, compared to $13,516 thousand in the same period of 2021, marking a 152% increase [23] - Net cash provided by operating activities for the three months ended December 31, 2022, was $34,081 thousand, compared to $13,516 thousand for the same period in 2021 [29] - Adjusted free cash flow for the three months ended December 31, 2022, was $29,665 thousand, reflecting a margin of 20% [29] - Total current assets as of December 31, 2022, were $923.8 million, compared to $593.4 million in 2021 [22] - Cash and cash equivalents as of December 31, 2022, were $885.9 million, slightly down from $886.8 million in 2021 [22] Expenses - Research and development expenses for the year 2022 were $127.0 million, significantly higher than $73.7 million in 2021, reflecting a 72% increase [21] - Sales and marketing expenses for the year 2022 reached $392.1 million, up from $268.1 million in 2021, a 46% increase [21] Future Projections - The company expects total revenue for Q1 FY 2023 to be between $154 million and $156 million, indicating year-over-year growth of 42% to 44% [11] - For the full year 2023, total revenue is projected to be between $688 million and $693 million, representing a year-over-year growth of 33% to 34% [11] Partnerships and Investments - A partnership with Appfire was announced to expand the monday.com app marketplace, enhancing offerings for the customer base [11] - The total cash used in investing activities for the year ended December 31, 2022, was $19,001 thousand, compared to $3,629 thousand in 2021, indicating increased investment efforts [23] - The purchase of property and equipment related to the new corporate headquarters was $7,303 thousand in 2021 [29] - The purchase of property and equipment for the three months ended December 31, 2022, was $3,760 thousand, compared to $2,974 thousand in 2021 [29] - Capitalized software development costs for the year ended December 31, 2022, amounted to $2,998 thousand, up from $2,180 thousand in 2021 [29]