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Monday.com (MNDY)
NASDAQ:MNDY
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Monday.com
(NASDAQ:MNDY)
Rating:78Outperform
Price Target:―
Positive Factors
Financial Performance
Gross margins came in at 90%, and the firm generated 39% FCF margins in the quarter, helping to sustain LTM FCF margins north of 30%.
Market Position and Growth
Monday.com has benefitted from terrific execution and a compelling product/market fit to yield a unique level of growth, well above peers.
Negative Factors
Competitive Risk
New product categories means new well-funded competitors and incumbents. New markets means new buyer personas and sales cycles.
Market Expectations
Investor expectations already look for high 20%'s growth in FY25 and FY26, which may prove achievable, but is priced-into shares, creating a risk/reward more supportive of an Equal-weight.
Monday.com (MNDY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$14.66B
Dividend YieldN/A
Average Volume (3M)573.51K
Price to Earnings (P/E)304.6
Beta (1Y)2.14
Revenue Growth32.25%
EPS Growth156.94%
CountryUS
Employees2,508
SectorTechnology
Sector Strength89
IndustrySoftware - Application
Share Statistics
EPS (TTM)1.10
Shares Outstanding50,773,340
10 Day Avg. Volume493,685
30 Day Avg. Volume573,514
Financial Highlights & Ratios
PEG Ratio1.37
Price to Book (P/B)8.22
Price to Sales (P/S)0.00
P/FCF Ratio686.76
Enterprise Value/Market Cap0.33
Enterprise Value/Revenue1.36
Enterprise Value/Gross Profit5.50
Enterprise Value/Ebitda-127.26
Forecast
1Y Price Target
$344.32Price Target Upside15.40% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering20
Monday.com Business Overview & Revenue Model
Company DescriptionMonday.com is a work operating system (Work OS) that empowers teams to run projects and workflows with confidence. Based in Israel, the company provides cloud-based software that allows organizations to create their own applications and work management software. Monday.com serves a wide array of sectors including technology, education, manufacturing, and marketing, with core products focusing on project management, team collaboration, and productivity enhancement.
How the Company Makes MoneyMonday.com generates revenue primarily through a subscription-based model. Customers pay for access to its platform on a per-user, per-month basis, with pricing tiers that vary based on the level of functionality and number of users. The company offers different plans such as Basic, Standard, Pro, and Enterprise, each with escalating features and support options. Additionally, Monday.com benefits from partnerships with other software providers, integrations with third-party applications, and marketplace expansions that enhance the platform's functionality and user appeal. This diversified approach to revenue generation is complemented by a focus on increasing customer lifetime value through upselling and expanding usage within existing accounts.
Monday.com Key Performance Indicators (KPIs)
Any
Customers Over $50K
Indicates the number of large-scale clients generating significant revenue, highlighting the company’s ability to attract and retain high-value customers, which can drive stable and substantial growth.
Indicates the number of large-scale clients generating significant revenue, highlighting the company’s ability to attract and retain high-value customers, which can drive stable and substantial growth.
Data provided by:
Main Street Data
Main Street DataMonday.com Earnings Call Summary
Earnings Call Date:May 12, 2025
(Q1-2025)
| % Change Since: 7.23%|
Next Earnings Date:Aug 18, 2025
Earnings Call Sentiment Positive
monday.com demonstrated strong revenue growth and operational efficiency in Q1 2025, with significant expansion in the enterprise segment and successful adoption of AI features. However, the company remains cautious about macroeconomic uncertainties which may affect future performance.Q1-2025 Updates
Positive Updates
Record Revenue Growth
monday.com reported a robust revenue growth of 30% year-over-year, achieving a total revenue of $282 million for Q1 2025.
Strong Operating Profit and Cash Flow
The company achieved record quarterly operating profit and generated its highest-ever cash flow for a single quarter, with adjusted free cash flow at $109.5 million, representing a 39% margin.
Enterprise Segment Growth
The enterprise segment continued to be the fastest-growing area, with new capabilities launched for the work management enterprise tier, offering enhanced visibility and control.
AI Adoption and Innovation
There was a significant increase in AI actions performed by users, up more than 150% since the end of 2024, reflecting rapid adoption of AI-powered features.
New Chief Revenue Officer
Casey George was appointed as Chief Revenue Officer, bringing extensive experience in scaling enterprise software organizations and driving strategic market expansion.
Improving Efficiency in Marketing
Sales and marketing expenses decreased as a percentage of revenue from 56% to 48% year-over-year, highlighting improving efficiency.
Negative Updates
Macroeconomic Uncertainty
Despite strong performance, management expressed concerns about macroeconomic uncertainty, impacting their conservative guidance for the rest of 2025.
Potential Decline in Net Dollar Retention
Net dollar retention (NDR) remained stable at 112%, but management expects it to be slightly below this figure by the end of the year due to market uncertainties.
Minor FX Impact
The company noted a negative impact from foreign exchange rates, although it is expected to be less than 1% for the entire fiscal year.
Company Guidance
During monday.com's Q1 Fiscal Year 2025 earnings call, the company provided optimistic guidance, projecting revenue for Q2 to range between $292 million and $294 million, reflecting a 24% to 25% year-over-year growth. For the full fiscal year 2025, monday.com expects revenue to be between $1,220 million and $1,226 million, representing a growth of 25% to 26% year-over-year. The company anticipates a non-GAAP operating income of $32 million to $34 million for Q2, translating to an operating margin of 11% to 12%, and a full-year non-GAAP operating income of $144 million to $150 million, with an operating margin of approximately 12%. Additionally, they forecast an adjusted free cash flow of $310 million to $316 million for the year, with a margin of 25% to 26%. Despite macroeconomic uncertainties, the company remains confident in its strategic initiatives and product offerings, expecting to maintain strong financial performance throughout the year.Monday.com Financial Statement Overview
Summary
Monday.com demonstrates robust revenue growth with significant improvements in net income. The balance sheet shows strong liquidity and low leverage, while cash flow management remains efficient despite some volatility in investing and financing activities.Income Statement
Monday.com has shown robust revenue growth with a significant increase from $161.12 million in 2020 to $971.99 million in 2024, indicating strong market demand for its software solutions. The gross profit margin remains high at approximately 89.33% in 2024, reflecting efficient cost management in delivering services. However, the company has struggled with profitability at the operating level, as evidenced by negative EBIT and EBITDA margins, although there's an improvement in net income with a margin of 3.33% in 2024.85
Very Positive
Balance Sheet
The balance sheet of Monday.com demonstrates a strong liquidity position with cash and equivalents surpassing total debt, leading to a negative net debt situation. The debt-to-equity ratio is low due to minimal debt levels relative to equity, signaling financial stability. However, the equity ratio has room for improvement as it stands at 61.11% in 2024, suggesting potential for better asset utilization. The growth in stockholders' equity over the years is a positive indicator of financial health.78
Positive
Cash Flow
Cash flow from operations has consistently increased, reaching $311.07 million in 2024, indicating strong cash-generating capabilities. The free cash flow has also grown significantly, enhancing financial flexibility. The free cash flow to net income ratio suggests efficient cash conversion, with free cash exceeding net income. However, the volatility in investing and financing cash flows requires attention to ensure sustainable cash management practices.82
Very Positive
| Breakdown | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 972.00M | 729.70M | 519.03M | 308.15M | 161.12M |
| Gross Profit | 868.30M | 649.05M | 452.50M | 269.14M | 138.63M |
| EBITDA | -9.18M | 12.79M | -120.10M | -123.93M | -147.11M |
| Net Income | 32.37M | -1.88M | -136.87M | -129.29M | -152.20M |
Balance Sheet | |||||
| Total Assets | 1.69B | 1.28B | 1.04B | 933.19M | 157.42M |
| Cash, Cash Equivalents and Short-Term Investments | 1.46B | 1.12B | 885.89M | 886.81M | 139.81M |
| Total Debt | 106.04M | 61.15M | 77.72M | 84.00K | 21.10M |
| Total Liabilities | 655.28M | 462.15M | 359.30M | 229.80M | 374.98M |
| Stockholders Equity | 1.03B | 813.51M | 679.74M | 703.39M | -217.56M |
Cash Flow | |||||
| Free Cash Flow | 297.85M | 204.94M | 8.14M | 2.60M | -42.66M |
| Operating Cash Flow | 311.06M | 215.40M | 27.14M | 16.36M | -37.17M |
| Investing Cash Flow | -70.81M | -10.46M | -19.00M | -3.63M | -11.48M |
| Financing Cash Flow | 55.21M | 25.29M | -9.05M | 742.27M | 8.47M |
Monday.com Technical Analysis
Positive
298.36
Price Trends
284.74
Positive
277.15
Positive
272.38
Positive
Market Momentum
2.33
Positive
58.60
Neutral
81.28
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For MNDY, the sentiment is Positive. The current price of 298.36 is above the 20-day moving average (MA) of 297.72, above the 50-day MA of 284.74, and above the 200-day MA of 272.38, indicating a bullish trend. The MACD of 2.33 indicates Positive momentum. The RSI at 58.60 is Neutral, neither overbought nor oversold. The STOCH value of 81.28 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for MNDY.
Monday.com Peers Comparison
Overall Rating
UnderperformOutperform
Sector (49)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
81 Outperform | $15.90B | 66.81 | 25.20% | 0.53% | 10.71% | -27.64% | |
78 Outperform | $14.66B | 304.63 | 5.39% | ― | 32.25% | 156.94% | |
71 Outperform | $9.69B | 44.17 | 19.70% | ― | 14.63% | 17.15% | |
68 Neutral | $10.04B | ― | -14.15% | ― | -16.74% | 49.75% | |
61 Neutral | $18.08B | 199.11 | 12.06% | ― | 39.14% | 103.72% | |
60 Neutral | $3.04B | ― | -83.36% | ― | 9.84% | 13.74% | |
49 Neutral | C$2.89B | 2.48 | -80.91% | 2.94% | 6.72% | -18.96% |
* Technology Sector Average
Performance Comparison
MNDY
Monday.com
305.52
69.24
29.30%
PCTY
Paylocity
177.16
44.95
34.00%
U
Unity Software
23.40
6.86
41.48%
BSY
Bentley Systems
52.63
3.23
6.54%
ASAN
Asana
13.33
-0.25
-1.84%
DUOL
Duolingo
398.66
190.01
91.07%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.