monday.com(MNDY) ZACKS·2025-02-11 17:05Core 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]