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Project management software maker Monday.com (NASDAQ:MNDY) announced better-than-expected revenue in Q1 CY2025, with sales up 30.1% year on year to $282.3 million. The company expects next quarter’s revenue to be around $293 million, close to analysts’ estimates. Its non-GAAP profit of $1.10 per share was 56.4% above analysts’ consensus estimates.

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Monday.com (MNDY) Q1 CY2025 Highlights:

• Revenue: $282.3 million vs analyst estimates of $276 million (30.1% year-on-year growth, 2.3% beat)

• Adjusted EPS: $1.10 vs analyst estimates of $0.70 (56.4% beat)

• Adjusted Operating Income: $40.75 million vs analyst estimates of $26.61 million (14.4% margin, 53.2% beat)

• The company slightly lifted its revenue guidance for the full year to $1.22 billion at the midpoint from $1.21 billion

• Operating Margin: 3.5%, up from -2.3% in the same quarter last year

• Free Cash Flow Margin: 38.8%, up from 27.1% in the previous quarter

• Customers: 3,444 customers paying more than $50,000 annually

• Net Revenue Retention Rate: 115%, in line with the previous quarter

• Market Capitalization: $14.13 billion

“Our strong financial performance and disciplined execution position us well to navigate uncertainties ahead ,” said Eliran Glazer, monday.com CFO.

Company Overview

Founded in 2014 and named after the dreaded first day of the work week, Monday.com (NASDAQ:MNDY) is a software-as-a-service platform that helps organizations plan and track work efficiently.

Sales Growth

Reviewing a company’s long-term sales performance reveals insights into its quality. Even a bad business can shine for one or two quarters, but a top-tier one grows for years. Luckily, Monday.com’s sales grew at an incredible 42.6% compounded annual growth rate over the last three years. Its growth surpassed the average software company and shows its offerings resonate with customers, a great starting point for our analysis.

This quarter, Monday.com reported wonderful year-on-year revenue growth of 30.1%, and its $282.3 million of revenue exceeded Wall Street’s estimates by 2.3%. Company management is currently guiding for a 24.1% year-on-year increase in sales next quarter.

Looking further ahead, sell-side analysts expect revenue to grow 23.2% over the next 12 months, a deceleration versus the last three years. Still, this projection is commendable and suggests the market sees success for its products and services.

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