Shares of monday.com (NASDAQ:MNDY) surged in pre-market trading after the company reported its Q3 results. The cloud-based platform that allows companies to create their own processes and tools reported adjusted earnings of $0.64 per diluted share in the third quarter as compared to $0.05 in the same period last year, beating analysts’ consensus estimate of $0.20 per share.
The company’s revenues increased by 38% year-over-year to $189.2 million, beating analysts’ expectations of $182.5 million.
monday.com Co-Founders and Co-CEOs, Roy Mann and Eran Zinman, commented, “Q3 marked another strong quarter for monday.com, with continued momentum from our multi-product strategy and robust customer demand. We are particularly pleased with our progress on mondayDB, our new infrastructure underpinning the WorkOS platform. “
In the third quarter, monday.com’s number of paid customers with more than $50,000 in Annual Recurring Revenue (ARR) was 2,077, up by 57% year-over-year while the net dollar retention rate for those customers was over 115%.
Looking forward, management now expects Q4 revenues to be in the range of $196 million to $198 million while adjusted operating income is likely to be between $7 million and $9 million. In FY23, the company has projected revenues in the range of $723 million to $725 million while adjusted operating income is anticipated to be between $47 million to $49 million.
What is the Price Target for monday.com?
Analysts remain bullish about MNDY stock with a Strong Buy consensus rating based on 12 Buys and two Holds. The average MNDY price target of $198.77 implies an upside potential of 41.86% at current levels.
