monday.com Announces First Quarter 2024 Results
First quarter revenue of
Number of customers with more than
Achieved record quarterly free cash flow
monday sales CRM and monday dev now accessible to all customers
Management Commentary:
“Our Q1 results mark an exceptional start to the year, with strong demand for our products across all ends of the market,” said
“Q1 represents another great step forward for
First Quarter Fiscal 2024 Financial Highlights:
-
Revenue was
$216.9 million , an increase of 34% year-over-year. -
GAAP operating loss was
$5.0 million compared to a loss of$22.8 million in the first quarter of 2023; GAAP operating margin was negative 2% compared to negative 14% in the first quarter of 2023. -
Non-GAAP operating income was
$21.5 million compared to a loss of$0.3 million in the first quarter of 2023; non-GAAP operating margin was 10%, compared to 0% in the first quarter of 2023. -
GAAP basic and diluted net income per share was
$0.14 , compared to GAAP basic and diluted net loss per share of$0.31 in the first quarter of 2023; non-GAAP basic and diluted net income per share was$0.64 and$0.61 , respectively, compared to non-GAAP basic and diluted net income per share of$0.15 and$0.14 , respectively, in the first quarter of 2023. -
Net cash provided by operating activities was
$92.0 million , with$89.9 million of free cash flow, compared to net cash provided by operating activities of$42.7 million and$38.7 million of free cash flow in the first quarter of 2023.
Recent Business Highlights:
- Net dollar retention rate was 110%.
- Net dollar retention rate for customers with more than 10 users was 114%.
-
Net dollar retention rate for customers with more than
$50,000 in annual recurring revenue (“ARR”) was 114%. -
Net dollar retention rate for customers with more than
$100,000 in ARR was 113%. -
The number of paid customers with 10+ users was 55,515, up 18% from 47,228 as of
March 31, 2023 . -
The number of paid customers with more than
$50,000 in ARR was 2,491, up 48% from 1,683 as ofMarch 31, 2023 . -
The number of paid customers with more than
$100,000 in ARR was 911, up 55% from 588 as ofMarch 31, 2023 . - monday sales CRM and monday dev are now available to all customers, and both products saw accelerated account growth in the quarter.
Financial Outlook:
For the second quarter of fiscal year 2024,
-
Total revenue of
$226 million to$230 million , representing year-over-year growth of 29% to 31%. -
Non-GAAP operating income of
$17 million to$21 million and operating margin of 8% to 9%. -
Free cash flow of
$47 million to$51 million and free cash flow margin of 21% to 22%.
For the full year 2024,
-
Total revenue of
$942 million to$948 million , representing year-over-year growth of 29% to 30%. -
Non-GAAP operating income of
$77 million to$83 million and operating margin of 8% to 9%. -
Free cash flow of
$238 million to$244 million and free cash flow margin of 25% to 26%.
Non-GAAP Financial Measures:
This press release and the accompanying tables contain the following non-GAAP financial measures: revenue excluding FX impacts, non-GAAP gross profit, non-GAAP gross margin, non-GAAP sales and marketing expenses, non-GAAP research and development expenses, non-GAAP general and administrative expenses, non-GAAP operating income (loss), non-GAAP operating margin, non-GAAP net income, non-GAAP net income per share, free cash flow, and free cash flow margin. Certain of these non-GAAP financial measures exclude share-based compensation.
Management does not consider these non-GAAP measures in isolation or as an alternative to financial measures determined in accordance with GAAP. The principal limitation of these non-GAAP financial measures is that they exclude significant expenses and income that are required by GAAP to be recorded in
Reconciliation tables of the most directly comparable GAAP financial measures to the non-GAAP financial measures used in this press release are included with the financial tables at the end of this release.
Definitions of Business Key Performance Indicators
Net Dollar Retention Rate
We calculate Net Dollar Retention Rate as of a period end by starting with the ARR from customers as of the 12 months prior to such period end (“Prior Period ARR”). We then calculate the ARR from these customers as of the current period end (“Current Period ARR”). The calculation of Current Period ARR includes any upsells, contraction and attrition. We then divide the total Current Period ARR by the total Prior Period ARR to arrive at the Net Dollar Retention Rate. For the trailing 12-month calculation, we take a weighted average of this calculation of our quarterly Net Dollar Retention Rate for the four quarters ending with the most recent quarter.
Annual Recurring Revenue (“ARR”)
Is defined to mean, as of the measurement date, the annualized value of our customer subscription plans assuming that any contract that expires during the next 12 months is renewed on its existing terms.
Forward-Looking Statements:
This press release contains “forward-looking statements” within the meaning of the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995, including but not limited to, statements regarding our financial outlook and market positioning. These forward-looking statements are made as of the date they were first issued and were based on current expectations, estimates, forecasts and projections as well as the beliefs and assumptions of management. Words such as “outlook,” “guidance,” “expect,” “anticipate,” “should,” “believe,” “hope,” “target,” “project,” “plan,” “goals,” “estimate,” “potential,” “predict,” “may,” “will,” “might,” “could,” “intend,” “shall” and variations of these terms or the negative of these terms and similar expressions are intended to identify these forward-looking statements. Forward-looking statements are subject to a number of risks and uncertainties, many of which involve factors or circumstances that are beyond
Past performance is not necessarily indicative of future results. The forward-looking statements included in this press release represent monday.com’s views as of the date of this press release.
Earnings Webcast:
Investor Presentation Details:
An investor presentation providing additional information can be found at http://ir.monday.com.
About
The monday.com Work OS is a low code- no code platform that democratizes the power of software so organizations can easily build work management tools and software applications to fit their every need. The platform intuitively connects people to processes and systems, empowering teams to excel in every aspect of their work while creating an environment of transparency in business.
Visit us on our LinkedIn, X (formerly Twitter), Instagram, YouTube, TikTok, and Facebook. For more information about
|
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CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS |
||||||
( |
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|
|
Three months ended |
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|
|
2024 |
|
|
2023 |
|
|
(unaudited) |
|||||
|
|
|
|
|||
Revenue |
$ |
216,913 |
|
$ |
162,256 |
|
Cost of revenue |
|
23,454 |
|
|
17,014 |
|
Gross profit |
|
193,459 |
|
|
145,242 |
|
Operating expenses: |
|
|
|
|
||
Research and development |
|
44,423 |
|
|
37,063 |
|
Sales and marketing |
|
128,141 |
|
|
107,680 |
|
General and administrative |
|
25,917 |
|
|
23,251 |
|
Total operating expenses |
|
198,481 |
|
|
167,994 |
|
Operating loss |
|
(5,022 |
) |
|
(22,752 |
) |
Financial income, net |
|
12,839 |
|
|
9,883 |
|
Income (loss) before income taxes |
|
7,817 |
|
|
(12,869 |
) |
Income tax expense |
|
(739 |
) |
|
(1,798 |
) |
Net income (loss) |
$ |
7,078 |
|
$ |
(14,667 |
) |
|
|
|
|
|
||
Net income (loss) per share, basic and diluted |
$ |
0.14 |
|
$ |
(0.31 |
) |
Weighted-average ordinary shares used in calculating net income (loss) per ordinary share, basic |
|
49,204,541 |
|
|
47,912,353 |
|
Weighted-average ordinary shares used in calculating net income (loss) per ordinary share, diluted |
|
52,020,163 |
|
|
47,912,353 |
|
|
|
|
|
|
|
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CONDENSED CONSOLIDATED BALANCE SHEETS |
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( |
||||||
|
|
|
|
|
||
|
|
2024 |
|
|
2023 |
|
ASSETS |
|
(unaudited) |
|
(audited) |
||
CURRENT ASSETS: |
|
|
|
|
||
Cash and cash equivalents |
$ |
1,224,544 |
|
$ |
1,116,128 |
|
Accounts receivable, net |
|
18,310 |
|
|
17,911 |
|
Prepaid expenses and other current assets |
|
48,998 |
|
|
39,103 |
|
Total current assets |
|
1,291,852 |
|
|
1,173,142 |
|
LONG-TERM ASSETS: |
|
|
|
|
||
Property and equipment, net |
|
37,502 |
|
|
37,418 |
|
Operating lease right-of-use assets |
|
58,740 |
|
|
62,280 |
|
Other long-term assets |
|
2,670 |
|
|
2,816 |
|
Total long-term assets |
|
98,912 |
|
|
102,514 |
|
Total assets |
$ |
1,390,764 |
|
$ |
1,275,656 |
|
LIABILITIES AND SHAREHOLDERS' EQUITY |
|
|
|
|
||
CURRENT LIABILITIES: |
|
|
|
|
||
Accounts payable |
$ |
37,172 |
|
$ |
24,837 |
|
Accrued expenses and other current liabilities |
|
134,678 |
|
|
106,691 |
|
Deferred revenue, current |
|
302,481 |
|
|
266,284 |
|
Operating lease liabilities, current |
|
18,853 |
|
|
18,201 |
|
Total current liabilities |
|
493,184 |
|
|
416,013 |
|
LONG-TERM LIABILITIES |
|
|
|
|
||
Operating lease liabilities, non-current |
|
39,035 |
|
|
42,946 |
|
Deferred revenue, non-current |
2,696 |
|
|
3,189 |
|
|
Total long-term liabilities |
41,731 |
|
|
46,135 |
|
|
Total liabilities |
534,915 |
|
|
462,148 |
|
|
SHAREHOLDERS' EQUITY: |
|
|
|
|
||
Other comprehensive income |
|
6,468 |
|
|
9,804 |
|
Share capital and additional paid-in capital |
|
1,426,707 |
|
|
1,388,108 |
|
Accumulated deficit |
|
(577,326 |
) |
|
(584,404 |
) |
Total shareholders’ equity |
|
855,849 |
|
|
813,508 |
|
Total liabilities and shareholders’ equity |
$ |
1,390,764 |
|
$ |
1,275,656 |
|
|
||||||
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS |
||||||
( |
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|
|
Three months ended |
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|
|
|
||||
|
|
2024 |
|
|
2023 |
|
|
|
(unaudited) |
||||
CASH FLOWS FROM OPERATING ACTIVITIES: |
|
|
|
|
||
Net income (loss) |
$ |
7,078 |
|
$ |
(14,667 |
) |
Adjustments to reconcile net income (loss) to net cash provided by operating activities: |
|
|
|
|
||
Depreciation and amortization |
|
2,533 |
|
|
1,972 |
|
Share-based compensation |
|
26,543 |
|
|
22,459 |
|
|
|
|
|
|
||
Changes in operating assets and liabilities: |
|
|
|
|
||
Accounts receivable, net |
|
(399 |
) |
|
(5,760 |
) |
Prepaid expenses and other assets |
|
2,107 |
|
|
(162 |
) |
Accounts payable |
|
12,043 |
|
|
3,816 |
|
Accrued expenses and other liabilities, net |
|
6,346 |
|
|
4,104 |
|
Deferred revenue |
|
35,704 |
|
|
30,966 |
|
Net cash provided by operating activities |
91,955 |
|
|
42,728 |
|
|
|
|
|
|
|||
CASH FLOWS FROM INVESTING ACTIVITIES: |
|
|
|
|||
Purchase of property and equipment |
|
(1,460 |
) |
|
(3,561 |
) |
Capitalized software development costs |
|
(601 |
) |
|
(485 |
) |
Net cash used in investing activities |
(2,061 |
) |
|
(4,046 |
) |
|
CASH FLOWS FROM FINANCING ACTIVITIES: |
|
|
|
|||
Proceeds from exercise of share options and employee share purchase plan |
|
8,708 |
|
|
5,086 |
|
Receipt of tax advance relating to exercises of share options and RSUs, net |
|
9,814 |
|
|
5,903 |
|
Net cash provided by financing activities |
|
18,522 |
|
|
10,989 |
|
|
|
|
|
|||
INCREASE IN CASH, AND CASH EQUIVALENTS |
108,416 |
|
|
49,671 |
|
|
CASH AND CASH EQUIVALENTS - Beginning of period |
1,116,128 |
|
|
885,894 |
|
|
CASH AND CASH EQUIVALENTS - End of period |
$ |
1,224,544 |
|
$ |
935,565 |
|
|
||||||
Reconciliation of GAAP to Non-GAAP Financial Information |
||||||
( |
||||||
|
|
Three months ended
|
||||
|
|
2024 |
|
|
2023 |
|
|
|
(unaudited) |
||||
Reconciliation of gross profit and gross margin |
|
|
|
|
||
GAAP gross profit |
$ |
193,459 |
|
$ |
145,242 |
|
Share-based compensation |
|
1,244 |
|
|
1,477 |
|
Non-GAAP gross profit |
$ |
194,703 |
|
$ |
146,719 |
|
|
|
|
|
|
||
GAAP gross margin |
|
89 |
% |
|
90 |
% |
Non-GAAP gross margin |
|
90 |
% |
|
90 |
% |
|
|
|
|
|
||
Reconciliation of operating expenses |
|
|
|
|
||
GAAP research and development |
$ |
44,423 |
|
$ |
37,063 |
|
Share-based compensation |
|
(9,626 |
) |
|
(8,544 |
) |
Non-GAAP research and development |
$ |
34,797 |
|
$ |
28,519 |
|
|
|
|
|
|
||
GAAP sales and marketing |
$ |
128,141 |
|
$ |
107,680 |
|
Share-based compensation |
|
(7,335 |
) |
|
(5,028 |
) |
Non-GAAP sales and marketing |
$ |
120,806 |
|
$ |
102,652 |
|
|
|
|
|
|
||
GAAP general and administrative |
$ |
25,917 |
|
$ |
23,251 |
|
Share-based compensation |
|
(8,338 |
) |
|
(7,410 |
) |
Non-GAAP general and administrative |
$ |
17,579 |
|
$ |
15,841 |
|
|
|
|
|
|
||
Reconciliation of operating income (loss) |
|
|
|
|
||
GAAP operating loss |
$ |
(5,022 |
) |
$ |
(22,752 |
) |
Share-based compensation |
|
26,543 |
|
|
22,459 |
|
Non-GAAP operating income (loss) |
$ |
21,521 |
|
$ |
(293 |
) |
GAAP operating margin |
|
(2 |
%) |
|
(14 |
%) |
Non-GAAP operating margin |
10 |
% |
|
(0 |
%) |
|
||||||
Reconciliation of GAAP to Non-GAAP Financial Information (Cont.) |
||||||
( |
||||||
|
|
|
|
|||
Reconciliation of net income (loss) |
|
|
|
|
||
GAAP net income (loss) |
$ |
7,078 |
|
$ |
(14,667 |
) |
Share-based compensation |
|
26,543 |
|
|
22,459 |
|
Tax benefit related to share-based compensation(1) |
|
(1,905 |
) |
|
(559 |
) |
Non-GAAP net income |
$ |
31,716 |
|
$ |
7,233 |
|
Reconciliation of weighted average number of shares outstanding |
|
|
|
|
||
Weighted-average ordinary shares used in calculating GAAP and Non-GAAP net income (loss) per ordinary share, basic |
|
49,204,541 |
|
|
47,912,353 |
|
Effect of dilutive shares |
|
2,815,622 |
|
|
2,926,057 |
|
Weighted-average ordinary shares used in calculating Non-GAAP net income (loss) per ordinary share, diluted |
|
52,020,163 |
|
|
50,838,410 |
|
|
|
|
|
|
||
|
|
|
|
|
||
GAAP net income (loss) per share, basic and diluted |
$ |
0.14 |
|
$ |
(0.31 |
) |
Non-GAAP net income per share, basic |
$ |
0.64 |
|
$ |
0.15 |
|
Non-GAAP net income per share, diluted |
$ |
0.61 |
|
$ |
0.14 |
|
(1) |
The tax benefits generated from the exercise of the disqualifying disposition of incentive share options were excluded in calculating non-GAAP net income (loss) and non-GAAP net income (loss) per basic and diluted share. The Company believes that excluding these tax benefits enables investors to see the full effect that excluding share-based compensation expenses had on the operating results. |
|
Reconciliation of GAAP to Non-GAAP Financial Information (Cont.) |
( |
The following table reconciles our quarterly reported year-over-year revenue growth rates to the non-GAAP measure of FX adjusted year-over-year revenue growth rates, which excludes the impact of changes in foreign currency exchange rates. The company believes FX adjusted growth rates provide a useful framework for assessing our business performance excluding the effects of foreign currency exchange rate fluctuations. The impact of foreign currency exchange rate fluctuations is determined by calculating the current year result using foreign exchange rates consistent with the prior year period. |
|
|
Three months ended |
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|
|
|
||||
|
|
2024 |
|
|
2023 |
|
|
(unaudited) |
|||||
|
|
|
|
|||
Revenue growth as reported |
|
34 |
% |
|
50 |
% |
Impact of foreign currency |
|
0 |
% |
|
1 |
% |
Revenue growth, FX adjusted |
34 |
% |
51 |
% |
|
||||||
Reconciliation of net cash provided by operating activities to free cash flow |
||||||
( |
||||||
|
|
|
||||
|
|
Three months ended |
||||
|
|
|
||||
|
|
2024 |
|
|
2023 |
|
|
(unaudited) |
|||||
|
|
|
|
|||
Net cash provided by operating activities |
$ |
91,955 |
|
$ |
42,728 |
|
Purchase of property and equipment |
|
(1,460 |
) |
|
(3,561 |
) |
Capitalized software development costs |
|
(601 |
) |
|
(485 |
) |
Free cash flow |
$ |
89,894 |
|
$ |
38,682 |
|
Free cash flow margin |
|
41 |
% |
|
24 |
% |
View source version on businesswire.com: https://www.businesswire.com/news/home/20240515790719/en/
Investor Relations:
byron@monday.com
Media Relations:
julieca@monday.com
Source: