Monday.com's High-Paying Customers Rise 38%, Improves Operating Margin

Monday.com Ltd MNDY posted first-quarter results on Monday. The company reported a quarterly revenue growth of 30% year-on-year to $282.3 million, beating the consensus of $275.8 million. 

The project management software company’s adjusted EPS of $1.10 beat the analyst consensus estimate of $0.70.

The net dollar retention rate was 112% and 115% for customers with more than ten users.

Also Read: Monday.com Beats Q4 Earnings Estimates, Boasts 32% Revenue Growth: CEO Calls AI A Game-Changer

The number of paid customers with over $50,000 in annual recurring revenue (ARR) rose 38% year over year to 3,444. The adjusted operating margin increased 400 bps to 14%.

In the quarter, Monday.com generated an operating cash flow of $112 million compared to $92 million a year ago.

It generated $110 million in free cash flow, compared to $90 million a year ago, and ended the quarter with $1.6 billion in cash and equivalents.

Co-CEOs Roy Mann and Eran Zinman noted strong revenue growth in the first quarter, record operating profit, and its highest-ever adjusted free cash flow for a single quarter.

Outlook: Monday.com expects fiscal second-quarter 2025 revenue of $292 million to $294 million against the analyst consensus estimate of $275.8 million and an adjusted operating margin of 11% to 12%.

Monday.com expects 2025 revenue of $1.220 billion to $1.226 billion (prior $1.208 billion to $1.221 billion), against the analyst consensus estimate of $1.210 billion, and an adjusted operating margin of approximately 12% (prior 11% to 12%).

Price Action: Monday.com stock is trading down 0.81% to $276.00 at the last check on Monday.

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