Tel Aviv-based project and task management software company Monday.com has reported better-than-expected results for its latest quarter. In the fourth quarter, the company's revenue reached an impressive $202.6 million, marking a substantial 35% increase from the previous year. This figure not only exceeded the Wall Street consensus, which was tracked by FactSet and estimated at $198 million, but also surpassed Monday.com's own guidance range of $196 million to $198 million.
Moreover, Monday.com's non-GAAP earnings stood at 65 cents per share in the fourth quarter, which was almost double the Street consensus of 32 cents. The company's operating income was equally impressive, totaling $21.2 million, well above the projected range of $7 million to $9 million. Under generally accepted accounting principles, Monday.com earned 24 cents per share.
CFO Eliran Glazer expressed confidence in the company's ability to maintain its momentum going forward. Glazer stated, "While economic and geopolitical challenges remain, we are highly confident in our ability to carry this momentum into 2024 and beyond, as we continue to focus on driving top-line growth and building market share."
As a result of its strong performance, Monday.com's shares have seen substantial growth throughout the year. In fact, they have rallied over 25% since the beginning of the year and have surged nearly 69% over the past 12 months. This positive trajectory reflects investor confidence in the company's future prospects and its commitment to driving success.
Company's Impressive Financial Performance
The company, a noteworthy competitor in the software industry (competing with companies like Asana and Smartsheet), has recently revealed its outstanding financial results. The full-year revenue for the company reached an impressive $729.7 million, marking a substantial increase of 41%. This result surpassed the company's own projected revenue range of $723 million to $725 million. Furthermore, the operating income for the full year stood at $61.6 million, exceeding the initial forecast of $47 million to $49 million.
Software Pricing Optimization
In an intriguing development, the company has announced plans to implement a pricing boost for its work management software. The increase, set to take effect this month, ranges from 13% to 20%. This is a significant move as it is the first pricing increase the company has seen in the past five years.
Strong Q1 Projections
Looking ahead, Monday has projected its first-quarter revenue to fall between $207 million and $211 million. This projection, with the midpoint at $209 million, is on par with market expectations. The company also foresees a robust free cash flow for this period, ranging from $56 million to $60 million, surpassing consensus estimates of $47.8 million.
Encouraging Outlook for 2024
Monday anticipates a prosperous year ahead with revenue for the entirety of 2024 estimated to be between $926 million and $932 million. At the midpoint of this range, the projection slightly edges out market consensus at $927.5 million. The company further predicts that the full-year free cash flow will range from $200 million to $206 million, with the midpoint surpassing consensus at $200.5 million.
These remarkable financial results and promising projections highlight the success and growth potential of the company.
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