Project Management Platform Monday.com Reports Robust Q3 Topline Growth, Stock Climbs

Monday.com Ltd MNDY reported third-quarter (Q3) 2023 revenue growth of 38% Y/Y to $189.2 million, beating the consensus of $182.5 million. 

The project management software company's adjusted EPS of $0.64 beat the consensus of $0.20.

The net dollar retention rate was over 110%, with the net dollar retention rate for customers with more than ten users being over 115%.

The number of paid customers with over $50,000 in annual recurring revenue (ARR) rose 57% Y/Y to 2,077.

The adjusted operating margin was 13% versus (2)% a year back.

In Q3, MNDY generated net cash from operating activities of $66.6 million, with $64.9 million of free cash flow, compared to $20.0 million and $14.0 million, respectively, a year ago. MNDY held $1.05 billion in cash and equivalents.

Co-founders and co-CEOs Roy Mann and Eran Zinman said, "The rollout of mondayDB remains ahead of schedule, and our customers are already seeing significant speed improvements for their largest and most complex use cases."

Outlook: Monday.com sees Q4 revenue of $196 million - $198 million (versus the consensus of $195.2 million) and adjusted operating margin of 4% - 5%.

Monday.com raised 2023 revenue guidance to $723 million - $725 million (prior $713 million - $717 million), against the consensus of $715.5 million, and adjusted operating margin to 7% (prior view 3% - 4%).

Price Action: MNDY shares are trading higher by 10% at $154.11 on the last check Monday.