Monday.com (MNDY.US), US software company, rallies almost 20% and is one of the best performing Wall Street stocks today. The move higher in company's share price was triggered by release of a solid earnings report for Q1 2024 and upbeat forecasts for Q2 2024 as well as full-2024.
Company reported an, almost-34% jump in Q1 revenue to $216.9 million, beating analysts' expectations by around 3%. Cost of revenue was lower than expected but its growth exceeded growth in revenue, leading to a slight deterioration in gross margin. Unlike a year ago, company reported positive adjusted operating profit. Adjusted net income surged over 300% YoY to $31.7 million.
Apart from reporting solid Q1 results, company also issued upbeat forecasts for the current quarter and full-year. Monday.com expects Q2 revenue to reach $226-230 million, what would mark a 28.6-30.9% year-over-year growth. Q2 adjusted operating profit is seen at $17-21 million, compared to $16.6 million in Q2 2023. Full-year forecasts were boosted and the company now expects revenue of $942-948 million and adjusted operating income of $77-83 million.
Q1 2024 earnings
- Revenue:$216.9 million vs $210.5 million expected (+33.7% YoY)
- Cost of revenue: $23.5 million vs $24.5 million expected (+37.9% YoY)
- Gross profit: $194.7 million vs $187 million expected (+32.7% YoY)
- Gross margin: 89.8% vs 89.3% expected (90.4% a year ago)
- Adjusted operating income: $21.5 million vs $11.1 million expected (-$0.3 million a year ago)
- Adjusted operating margin: 9.9% vs 5.1% expected (-0.2% a year ago)
- Adjusted EBITDA: $24.1 million vs $13.9 million expected ($1.7 million a year ago)
- Adjusted EBITDA margin: 11.1% vs 6.6% expected (1% a year ago)
- Adjusted net income: $31.7 million vs $20.8 million expected (+338.5% YoY)
- Adjusted net margin: 14.6% vs 9.8% expected (4.4% a year ago)
- Adjusted diluted EPS: $0.61 vs $0.40 expected ($0.14 a year ago)
Q2 2024 forecast
- Revenue: $226-230 million vs $225.2 million expected
- Adjusted operating income: $17-21 million
Full-year 2024 forecast
- Revenue: $942-948 million, up from previous guidance of $926-932 million
- Adjusted operating income: $77-83 million, up from previous guidance of $58-64 million
Monday.com (MNDY.US) rallies almost 20% following release of upbeat Q1 2024 earnings report and trades at the highest level in a month. Source: xStation5
