monday.com(US:MNDY)2025-05-12 13:32Financial Data and Key Metrics Changes - The company reported a robust revenue growth of 30% year over year, with total revenue reaching $282 million in Q1 2025 [6][13] - Gross margin for Q1 was 90%, with expectations to remain in the high 80s range in the medium to long term [14] - Net income increased to $58.4 million in Q1 2025, up from $31.7 million in Q1 2024, resulting in a diluted net income per share of $1.1 [15] - Adjusted free cash flow for Q1 was $109.5 million, with an adjusted free cash flow margin of 39% [16] Business Line Data and Key Metrics Changes - The enterprise segment continued to be the fastest-growing area, with new capabilities launched for the work management enterprise tier [10] - The company saw strong performance in its CRM and service business, with 70% of the AR for Monday service coming from mid-market and enterprise segments [29] Market Data and Key Metrics Changes - Overall Net Dollar Retention (NDR) was stable at 112% in Q1, with improving retention for larger customer cohorts [13][31] - The company expects NDR to potentially be slightly below 112% by the end of the year due to macroeconomic uncertainties [31][95] Company Strategy and Development Direction - The company is focused on product innovation, including AI-powered features, which are rapidly adopted by customers [7][8] - The appointment of Casey George as Chief Revenue Officer is expected to accelerate enterprise growth and strengthen customer relationships [11][12] - The company aims to capitalize on significant growth opportunities despite macroeconomic uncertainties [12] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to weather uncertainties and continue delivering value for customers and shareholders [8][12] - The company anticipates revenue for Q2 2025 to be in the range of $292 million to $294 million, representing growth of 24% to 25% year over year [17] - Full-year revenue guidance for 2025 is projected to be between $1.002 billion and $1.226 billion, indicating growth of 25% to 26% year over year [18] Other Important Information - The company ended Q1 with $1.53 billion in cash and cash equivalents, an increase from $1.41 billion at the end of Q4 [16] - The company plans to grow headcount by approximately 30% in fiscal year 2025, with a total employee count of 2,695 at the end of Q1 [15][66] Q&A Session Summary Question: Insights on the go-to-market approach with the new Chief Revenue Officer - Management expressed excitement about the new hire and emphasized the importance of maintaining a balance between product-led growth and sales-led strategies [20][22] Question: Performance of CRM and service business - Management noted strong momentum in customer additions and highlighted that 70% of AR for Monday service comes from mid-market and enterprise segments [29][31] Question: Impact of FX on revenue - Management acknowledged some negative FX impact in Q1 but expects it to be less than 1% for the full year, taking a conservative approach due to macroeconomic uncertainties [36][44] Question: Trends in enterprise versus SMB - Management indicated consistent demand across all segments, with enterprise being the fastest-growing segment [48] Question: Cross-sell momentum in larger enterprises - Management noted that most expansions are driven by existing accounts adding more seats, with cross-sell opportunities expected to grow over time [52] Question: Geographic performance and growth deceleration in Europe - Management reported some challenges in Europe compared to North America but remains optimistic about stabilization [99] Question: Guidance assumptions and macroeconomic impact - Management reiterated a conservative approach to guidance due to uncertainties, with expectations for mid to high single-digit customer growth [103]