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Investing.com -- Monday.com's stock rocketed more than 27% Monday after the company reported better-than-expected Q4 results and offered an upbeat outlook for the first quarter of fiscal 2025.
For Q4, the project management software maker reported earnings per share (EPS) of $1.08, surpassing analyst estimates of $0.79. The company's revenue jumped 32% year-over-year to $268 million, also ahead of the consensus forecast of $261.37 million.
Monday.com reported cash and cash equivalents of $1.41 billion, up 26% year-over-year, though just below the $1.42 billion estimate.
The company provided Service account metrics for the first time, reporting 378 accounts at year-end with 214 net additions in Q4. According to Wolfe Research the offering is “showcasing one of the highest cross-sells of new products and the highest average customer value across MNDY's product suite.”
“2024 was a remarkable year for monday.com, reflecting our rapid product innovation and focus on go-to-market execution, driving strong demand across customers of all sizes. We are proud to have further expanded our product suite with monday service, which is already seeing rapid adoption from both existing and new customers,” said monday.com co-founders and co-CEOs, Roy Mann and Eran Zinman.
“As we look to 2025, we are excited to double-down on our AI efforts, with a focus on AI Blocks, Product Power-ups, and our new Digital Workforce of AI Agents. We believe AI can be a game-changer for our customers, giving them the ability to transform their workflows and scale faster than ever before.”
For guidance, the company expects first-quarter 2025 revenue between $274 million and $276 million, compared to the consensus estimate of $273.9 million.
Full-year 2025 (FY25) revenue is projected at $1.21 billion to $1.22 billion, in line with the consensus forecast of $1.21 billion.
FY25 non-GAAP EBIT margin guidance of 11.4% came in 1% below the $148 million consensus, while its free cash flow forecast of $304 million (25% margin) was 2.5% lower than the expected $332 million.
Wall Street analysts praised the results with several price target hikes already hitting the market.
Needham analyst Scott Berg raised his price target to $400 from $350, saying "MNDY reported excellent 4Q results propelled by Enterprise strength and solid US demand, while ROW demand remained stable and European weakness was less than feared." The analyst maintained a Buy rating.
Elsewhere, TD Cowen analyst J. Derrick Wood raised his price target to $385 from $300. He highlights that despite the surge, the stock is only up 5% since its third quarter results. "Given concerns around EMEA weakness&potential guide-down, the FY25 outlook was better than feared, driving shares up ~30% though still only up ~5% since the 3Q pre-print," Wood said.