www.monday.com MNDY reported non-GAAP earnings per share of 94 cents for the second quarter of 2024, up 129.2% from the year-ago quarter and beating the Zacks Consensus Estimate by 74.07%.
The company’s net sales of $236.11 million increased 34% year-over-year and surpassed the Zacks Consensus Estimate by 3.57%.
monday.com Ltd. Price, Consensus and EPS Surprise
monday.com Ltd. Price Consensus EPS Surprise Chart | monday.com Ltd. Quote
Quarterly details
In the second quarter, MNDY had 1,009 customers with annual revenue (ARR) of $100,000 or more, a 49% increase year over year. The net dollar retention rate for these customers was 114%.
As of June 30, 2024, the number of paying customers with more than 10 users was 57,203, an increase of 15% from 49,936 as of June 30, 2023. In addition, the number of paying customers with more than $50,000 ARR was 2,713, an increase of 43% from 1,892 as of June 30, 2023.
monday.com’s net dollar retention was 110% as customers increased their usage and adopted more products.
The company signed the largest deal in MNDY’s history with a multinational healthcare company, expanding its seat count to 80,000.
Operational details
MNDY’s adjusted gross margin increased 100 basis points (bps) year-over-year to 91%.
Research and development expenses increased 32.1% year over year to $36.9 million. As a percentage of revenue, research and development decreased 30 basis points to 15.6%.
Sales and marketing expenses increased 22.2% year over year to $120.7 million. As a percentage of revenue, sales and marketing expenses decreased 510 basis points to 51.1%.
General and administrative expenses increased 24.1% year-over-year to $18.2 million in the quarter. General and administrative expenses as a percentage of revenue decreased 60 basis points to 7.7%.
monday.com reported non-GAAP operating income of $38.4 million compared to $16.6 million in the year-ago quarter.
Balance sheet and cash flow
As of June 30, 2024, MNDY had cash, cash equivalents, restricted cash and marketable securities of $1.29 billion, compared to $1.11 billion as of March 31, 2024.
Operating cash flow was $55.8 million in the quarter, down from $92 million in the previous quarter.
Free cash flow was $50.8 million for the quarter compared to $89.9 million in the prior quarter.
Instructions
For the third quarter of 2024, MNDY expects revenue to be in the range of $243 million to $247 million. Non-GAAP operating income is expected to be in the range of $19 million to $23 million. Free cash flow is expected to be in the range of $70 million to $74 million.
For 2024, MNDY expects revenue to be in the range of $956 million to $961 million. Non-GAAP operating income is expected to be in the range of $100 million to $105 million. Free cash flow is expected to be in the range of $270 million to $275 million.
Zacks Ranking and Stocks to Consider
Currently, monday.com has a Zacks Rank #3 (Hold).
Some better valued stocks in the broader computer and technology sector are Bilibili BILLY, Cisco systems CSCO and Applied materials AMAT, all with Zacks Rank #2 (Buy) currently. The complete list of today’s Zacks Rank #1 (Strong Buy) stocks can be found here.
Bilibili shares have gained 10.8% year-to-date. BILI will announce second-quarter 2024 results on August 22.
Cisco Systems shares have fallen 11.2% year-to-date. CSCO is scheduled to report fourth-quarter fiscal 2024 results on August 14.
Applied Materials shares have gained 19.1% year-to-date. AMAT will report third-quarter fiscal 2024 results on August 15.
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