monday.com Q3 Earnings & Revenues Surpass Estimates, Both Increase Y/Y

Core Insights - monday.com (MNDY) reported Q3 2025 non-GAAP EPS of $1.16, exceeding estimates by 30.34% and increasing 36.5% year-over-year [1][8] - Total revenues reached $316.9 million, a 26.2% year-over-year increase, surpassing consensus estimates by 1.55% [1][8] Customer Metrics - MNDY had 1,603 customers with an annual run rate (ARR) of $100,000 or more, up 48% year-over-year [2] - The net dollar retention rate for customers with over $100,000 in ARR was 117% [2] - The number of paid customers with more than 10 users increased to 63,075, a 7% rise from the previous year [2] - The net dollar retention rate for customers with more than 10 users was 115% [2] - Paid customers with over $50,000 in ARR rose to 3,993, a 37% increase year-over-year [3] - Overall net dollar retention was 111% [3] Financial Performance - Adjusted gross margin decreased by 80 basis points year-over-year to 89.6% [4] - Research & development expenses rose 34.4% year-over-year to $57.8 million, accounting for 18.2% of revenues [4] - Sales and marketing expenses increased 16.5% year-over-year to $151.8 million, representing 47.9% of revenues [4] - General & administrative expenses increased by 25.9% year-over-year to $27 million, maintaining 8.5% of revenues [5] - Non-GAAP operating income was $47.5 million, up from $32.2 million year-over-year, with an operating margin of 15% [5] Cash Flow and Balance Sheet - As of September 30, 2025, MNDY had cash, cash equivalents, and marketable securities of $1.74 billion [6] - Operating cash flow was $95.1 million, up from $66.8 million in the previous quarter [6] - Free cash flow for the quarter was $92.3 million, compared to $64.1 million in the previous quarter [6] Future Guidance - For Q4 2025, MNDY expects revenues between $328 million and $330 million, indicating year-over-year growth of 22% to 23% [9] - Non-GAAP operating income is projected to be between $36 million and $38 million, with an operating margin of 11% to 12% [9] - For the full year 2025, MNDY anticipates revenues of $1,226 million to $1,228 million, reflecting approximately 26% year-over-year growth [10] - Expected non-GAAP operating income for 2025 is between $167 million and $169 million, with an operating margin around 14% [10] - Adjusted free cash flow is anticipated to be between $330 million and $334 million, representing a margin of about 27% [10]