- Monday.com (MNDY) has reported first-quarter earnings and revenue that surpassed estimates, with revenue guidance for the stock also exceeding expectations.
- The project management software company reported a profit of 61 cents a share on an adjusted basis, a 335% increase from the previous year, with revenue rising 34% to $26.9 million.
- Analysts had predicted an adjusted profit of 40 cents on revenue of $210.5 million. A year earlier, Monday.com earned 14 cents on revenue of $162.3 million.
Monday.com (MNDY) outperforms estimates in Q1 earnings, with a significant rise in profit and revenue, boosting the stock’s market performance.
Impressive Performance Boosts MNDY Stock
For the current quarter ending in June, Monday.com predicted revenue of $228 million vs. estimates of $225.2 million. This positive forecast has had a significant impact on the stock market, with MNDY stock popping more than 18.6% to 215.70 in morning trading. Prior to the earnings report, Monday.com stock had retreated 3% in 2024. The stock currently holds a Relative Strength Rating of 42 out of a best-possible 99, according to IBD Stock Checkup.
Competitive Landscape and Company Background
Monday.com competes with Asana (ASAN), Smartsheet (SMAR) and Atlassian (TEAM), among others. The company was founded in 2012 and raised $574 million in its June 2021 initial public offering, with MNDY stock priced at 155. The impressive Q1 results and positive revenue guidance for the next quarter indicate a strong position for Monday.com in the competitive landscape of project management software.
Analyst Perspective
“Results from price increases exceeded internal projections, and management is pleased with initial churn (customer turnover) data, noting gross retention reached an all-time high in Q1,” said TD Cowen analyst Derrick Wood in a report. This expert perspective further underscores the strong performance of Monday.com and its promising outlook.
Conclusion
Monday.com’s impressive Q1 earnings and revenue, coupled with a positive revenue forecast for the next quarter, have boosted its stock performance. With a strong competitive position and positive analyst perspective, the outlook for Monday.com appears promising.
