Monday.com Unvails New AI Capabilities

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I may be one of the few Monday.com share holders left. They are a 14.5% holding for me. Why?

  1. Monday.com consistently beat non-GAAP earnings estimates. Last quarter, the beat estimates by 90%, 86% the quarter before, and 37.5 the quarter before that.

  2. Revenue growth has been above 30%.

  3. Monday continues to invest in technology to allow customers to do more work with fewer people.

  1. They are in the middle of a rolling price increase, which customers have accepted without significant subscription drops.

Best,
bulwnkl

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Nice, thank you for the update here. Been watching them for a bit and they seem well past the early day’s hype that I tried to avoid.

I like that ARR keeps growing, but I think I got the numbers wrong…looks like only 1% of income? Most SAAS from the olden days was like over 50% wasn’t it?

ARR = 3444 in thousand$, so should be 3 mill?
Income = 282 million$, so looks to be tiny.

Is this a consideration anymore that most SAAS are not high fliers anymore?

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In general, I like MNDY, but the growth metrics have not supported an entry recently.

Is there a projection the revenue improvements from the reported pricing and tech upgrades coming for next qtr/yr?

These numbers from my database report the average revenue gain/loss per quarter for the period listed.

Gray

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They do not report ARR numbers in USD like Crowdstrike, but based on customer spending - more than $50k and more than $100k.

In my records, the number 3444 corresponds to the number of customers paying more than $50k ARR.

For customers paying more than $100k in ARR I have 1328.

Both ARR values are from Q1 CY25.

Also the net/gross income should be a percentage of the revenue, not of the ARR in my opinion.

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Thanks for the info. Does your ARR data over recent quarters suggest greater true revenue growth than is reflected in my numbers?

Gray

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Hi Greydrake,
Unfortunately, they don’t breakout how the tech change and pprice increase will change revenues/earnings each quarter. What I can say is that earnings and revenue estimates are very conservative (per my earlier comments). My numbers were YOY, so they are a bit different than yours.

We’ll have to wait and see, but I think its worth at least a small bite.

Best,
bulwnkl

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From your metrics I understand that the revenue growth for the next year (maybe you mean calendar 2025) will be 7% YoY. But even if it is for CY 2026, 7% is too little.

There is a possibility that the 7% means the average QoQ revenue growth, which is revenue growth of 31% YoY. If that is the case - I think 30% YoY revenue growth in CY2025 is highly possible, considering the pace of innovation that $MNDY has.

In another topic for $MNDY I mentioned that in 2-3 Qs I might need to start trimming only because the revenue growth most probably will slow down slowly due to law of large numbers, and I am looking for faster growers.

Overall I see $MNDY as a great company, providing lots of value to its customers and expanding successfully in the enterprise segment. I see lots of success for $MNDY.

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Thanks for the response. I draw on the actual quarterly revenue numbers and my database calculates the % return for each period. In determining Metric Targets Achieved Ratings for a ticker the weighting for next quarters guidance is the highest and weights for quarterly returns diminish with time. Annual returns are not considered apart from their quarterly components. From a process standpoint the Ratings are used only to trigger further examination, but in reviewing my portfolio, high numerically rated tickers dominate.

Gray

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