In This Article:
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Revenue: $282 million, up 30% year-over-year.
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Gross Margin: 90% for Q1.
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Net Income: $58.4 million, up from $31.7 million in Q1 '24.
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Diluted Net Income Per Share: $1.10 based on 53 million fully diluted shares.
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Research and Development Expense: $53.8 million, 19% of revenue.
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Sales and Marketing Expense: $135.9 million, 48% of revenue.
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Total Employee Headcount: 2,695, an increase of 187 employees since Q4.
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Cash and Cash Equivalents: $1.53 billion, up from $1.41 billion at the end of Q4.
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Adjusted Free Cash Flow: $109.5 million, with a margin of 39%.
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Net Dollar Retention (NDR): Stable at 112% in Q1.
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Q2 2025 Revenue Guidance: $292 million to $294 million, growth of 24% to 25% year-over-year.
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Full Year 2025 Revenue Guidance: $1.220 billion to $1.226 billion, growth of 25% to 26% year-over-year.
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Full Year 2025 Adjusted Free Cash Flow Guidance: $310 million to $360 million, margin of 25% to 26%.
Release Date: May 12, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Monday.Com Ltd (NASDAQ:MNDY) reported a robust revenue growth of 30% year over year for Q1 2025.
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The company achieved record quarterly operating profit and generated its highest ever cash flow for a single quarter.
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There was a significant increase in the adoption of AI features, with users performing over 26 million AI actions, up more than 150% since the end of 2024.
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The enterprise segment continues to be the fastest-growing, presenting significant opportunities for market share expansion.
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The appointment of Casey George as Chief Revenue Officer is expected to accelerate enterprise growth and strengthen customer relationships.
Negative Points
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Despite strong performance, there is macroeconomic uncertainty which may impact future results.
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Net Dollar Retention (NDR) is expected to be slightly below 112% by the end of the year due to market uncertainties.
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Research and development expenses increased to 19% of revenue, up from 16% in the previous year.
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The guidance for the full year 2025 reflects a conservative approach due to potential macroeconomic challenges.
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The company anticipates a negative impact from foreign exchange rates, though less than 100 basis points.
Q & A Highlights
Q: With the new Chief Revenue Officer joining, what aspects of monday.com's go-to-market strategy will remain unchanged, and what changes are anticipated? A: Eran Zinman, Co-CEO, highlighted the importance of maintaining the successful combination of product-led growth and self-led motion. The multiproduct strategy will continue, and the new CRO, Casey George, is expected to enhance the upmarket motion, bringing expertise in selling to larger enterprises and improving efficiency.
