GICS Sector : Technology
monday.com Ltd., together with its subsidiaries, develops software applications in the United States, Europe, the Middle East, Africa, and internationally.It provides Work OS, a cloud-based visual work operating system that consists of modular building blocks used and assembled to create software applications and work management tools.The company also offers product solutions for marketing, CRM, project management, software development, and other fields; and business development, presale, and customer success services.
Monday.com reported a stellar Q4 and FY2024, showcasing strong financial performance and operational execution. For Q4, revenue reached $268 million, representing a 32% year-over-year (YoY) growth, while full-year revenue came in at $972 million, up 33% YoY. Annualized Recurring Revenue (ARR) surpassed $1 billion, underscoring the company's ability to scale its subscription-based model. Gross margin remained robust at 89%, while operating margin for the year was 17%. Net income for Q4 was $57.3 million, with full-year net income at $183.3 million. Free cash flow was equally impressive, with $72.7 million in Q4 and $295.8 million for the full year, reflecting a 25.6% free cash flow margin for FY2024. As Eliran Glazer, CFO, noted, "Our free cash flow margins have been a key focus, and we're pleased to see the results reflecting our disciplined approach to growth and profitability."
Publication Date: Feb -26
The total customer base now stands at 245,000, with a strong emphasis on expanding within existing accounts and moving upmarket. Net Dollar Retention (NDR) remained stable at 112%, reflecting the company's ability to retain and grow its customer base. However, Q4 saw a slight slowdown in new CRM and Dev customer additions due to seasonality in performance marketing spend, a trend the company expects to normalize in the coming quarters.
Monday Service has been a standout performer, with strong demand driven by its integration with Work Management and its top-down sales approach, leading to higher ACV deals. The company also emphasized the success of its AI strategy, which aims to democratize AI use across the platform, enhancing efficiency and customer engagement. While it's still early to predict the revenue impact of AI, the company is positioning it as a cross-platform capability with future monetization potential.
Overall, Monday.com's Q4 and FY2024 results underscore its strong execution and strategic focus on enterprise sales, AI innovation, and customer retention. While macroeconomic uncertainties remain a headwind, the company's ability to scale and innovate positions it well for continued growth in the coming year.
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Monday.com's Work Operating System (Work OS) growth is driven by increasing adoption of digital transformation, rising demand for workflow automation, and expanding use of no-code/low-code platforms. Additionally, the shift towards remote work and the need for enhanced team collaboration and productivity tools contribute to the 23.37% growth.
A cloud-based work operating system that helps teams create custom workflows, automate tasks, and track projects in one place.
A platform that enables teams to manage projects, workflows, and daily tasks in a customizable and automated way.
A low-code platform that enables users to build custom applications, integrations, and automations without extensive coding knowledge.
A feature that enables users to automate repetitive tasks, workflows, and business processes across multiple systems and tools.
A feature that enables users to integrate monday.com with other tools, systems, and applications to enhance workflows and automate processes.
A feature that enables users to create custom dashboards to visualize data, track progress, and gain insights into workflows and projects.
Monday.com Ltd. has a medium threat of substitutes due to the presence of other project management tools and platforms in the market. However, its unique features and integrations with other tools make it a preferred choice for many users.
Monday.com Ltd. has a low bargaining power of customers due to its strong brand presence and customer loyalty. The company's customer-centric approach and continuous innovation also reduce the bargaining power of customers.
Monday.com Ltd. has a low bargaining power of suppliers due to its strong financial position and ability to negotiate with suppliers. The company's diversified supply chain also reduces its dependence on any single supplier.
Monday.com Ltd. has a high threat of new entrants due to the low barriers to entry in the project management software market. New entrants can easily enter the market with innovative features and pricing strategies, posing a threat to Monday.com Ltd.'s market share.
Monday.com Ltd. operates in a highly competitive market with many established players. The company faces intense rivalry from competitors such as Asana, Trello, and Wrike, which can lead to pricing pressures and reduced market share.
| Value | |
|---|---|
| Debt Weight | 6.99% |
| Debt Cost | 3.95% |
| Equity Weight | 93.01% |
| Equity Cost | 10.09% |
| WACC | 9.66% |
| Leverage | 7.52% |
Value: 0.9
Growth: 5.3
Quality: 7.1
Yield: 3.1
Momentum: 6.5
Volatility: 8.0
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Value: 1.3
Growth: 8.0
Quality: 6.8
Yield: 0.0
Momentum: 9.5
Volatility: 3.0
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Value: 0.0
Growth: 8.9
Quality: 9.4
Yield: 3.1
Momentum: 2.0
Volatility: 4.3
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Value: 3.2
Growth: 9.6
Quality: 8.8
Yield: 0.0
Momentum: 0.5
Volatility: 1.0
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Value: 6.0
Growth: 1.2
Quality: 4.5
Yield: 5.6
Momentum: 0.5
Volatility: 1.7
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Value: 2.2
Growth: 9.1
Quality: 4.5
Yield: 0.0
Momentum: 0.5
Volatility: 0.3
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