Monday.com reports Q3 earnings

Quick Take - Looked like a nice quarter. Shares up 10% today. Happy to see the continued operating leverage and strong customer growth.

Non-GAAP operating income was $24.1 million up from $2.2 million in the third quarter of 2022; non-GAAP operating margin was 13% compared to negative 2% in the third quarter of 2022.

  • Q3 Non-GAAP EPS of $0.64 beats by $0.43.

  • Revenue of $189.2M (+38.2% Y/Y) beats by $6.7M.

  • Net cash provided by operating activities was $66.6 million, with $64.9 million of free cash flow, compared to net cash provided by operating activities of $20.0 million and $14.0 million of free cash flow in the third quarter of 2022.

  • Net dollar retention rate for customers with more than $50,000 in annual recurring revenue was over 115%.

  • The number of paid customers with more than $50,000 in ARR was 2,077, up 57% from 1,323 as of September 30, 2022.

  • **Financial Outlook:**For the fourth quarter of fiscal year 2023, monday.com currently expects:

    • Total revenue of $196 million to $198 million, representing year-over-year growth of 31% to 32% vs. the consensus of $194.96M.
    • Non-GAAP operating income of $7 million to $9 million and operating margin of 4% to 5%.For the full year 2023, monday.com currently expects:
    • Total revenue of $723 million to $725 million, representing year-over-year growth of 39% to 40% vs. the consensus of $715.35M.
    • Non-GAAP operating income of $47 million to $49 million and operating margin of approximately 7%.

monday.com Announces Third Quarter 2023 Results | Seeking Alpha

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