Bessemer Venture Partners Top 10 Revenue Growth: #5 Monday

#5 Monday.Com. (MNDY)

Revenue Growth: 35.1%

Not really any need for much data on MNDY. Everyone and anyone that might drive by here knows who MNDY is and what they do -mostly. What investors don’t know is what Monday’s Q1 2024 tomorrow will reveal - and thats the whole crux of the matter.

Before we get into all that here is the current data on MNDY:

Current Price: $ 181.28
52 Wk Range: 122.13 - 239.22
Market Cap: $8.9B More or less.
YTD Momentum: Negative 3.2%
EV/Forward Revenue: 7.6 (7th lowest on BVP Index Top 10 Rev Growers)

Gross Margin: 88.9

So why the drama surrounding MMDY? Well…When Monday last reported way back on 2/12 it was a solid BEAT ACB with the exception of guidance maybe. However here were the Headlines:

https://seekingalpha.com/article/4669861-monday-dot-com-exercise-caution-despite-strong-fundamentals

https://seekingalpha.com/article/4669572-mondaycom-stock-ripe-for-a-breather-rating-downgrade

The fact that the company guided for Q1 revenue growth of 30% for Q1 certainly didn’t help. The highly honed, deeply analyzed and painstakingly evaluated Semi-Silent Monks of the Woeful Countenance projection is that the Monday Q1 Revenue Growth will come in between 33-35%. Rock Solid! Unless it doesn’t. Anyway…

On Feb 9 - a couple of days before the report the stock was sitting at $235.92. Since the reporting date the stock has swan dived by 23.2%. Helping to grease the skid - on April 10th that rascally Citi cuts its MNDY rating to Neutral. Here is what they said at the time:

“…the stock was downgraded after recent partner conversations and web traffic outlined slowing demand with a more muted impact from price increases, adding risk to the near-term outlook versus what they see as elevated investor sentiment and valuation.”

Well Alrighty then!

Lately a couple of Pro Scouting Reports have emerged:

https://seekingalpha.com/article/4684896-monday-com-multiple-growth-catalysts-minimal-signs-of-weakness?source=content_type%3Areact|section%3Asummary|section_asset%3Aall_analysis|first_level_url%3Asymbol|button%3ATitle|lock_status%3ANo|line%3A1

https://seekingalpha.com/article/4682753-mondaycom-positioned-for-growth-with-277-price-target?source=content_type%3Areact|section%3Asummary|section_asset%3Aall_analysis|first_level_url%3Asymbol|button%3ATitle|lock_status%3ANo|line%3A2

I am in the full speed ahead MNDY group with a nice fat position. Keeping in mind that tomorrow’s report will come Pre-Market allows me to shamelessly speculate that the report might be on the robust side. Might not though - we’ll see I suppose.

All the Best,
BDH Investing

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