UBS has revised its price target for Monday.com (MNDY, Financial), reducing it from $350 to $310. Despite this adjustment, the investment firm maintains a Neutral rating on the company's shares. The analyst highlights that, so far, Monday.com has not faced any major economic challenges.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 23 analysts, the average target price for Monday.Com Ltd (MNDY, Financial) is $353.66 with a high estimate of $455.00 and a low estimate of $280.00. The average target implies an upside of 28.81% from the current price of $274.56. More detailed estimate data can be found on the Monday.Com Ltd (MNDY) Forecast page.
Based on the consensus recommendation from 25 brokerage firms, Monday.Com Ltd's (MNDY, Financial) average brokerage recommendation is currently 1.8, indicating "Outperform" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for Monday.Com Ltd (MNDY, Financial) in one year is $335.96, suggesting a upside of 22.36% from the current price of $274.56. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the Monday.Com Ltd (MNDY) Summary page.
MNDY Key Business Developments
Release Date: February 10, 2025
- Total Revenue (Q4 2024): $268 million, up 32% year-over-year.
- Total Revenue (FY 2024): $972 million, up 33% from the prior year.
- Annual Recurring Revenue: Reached $1 billion.
- Net Dollar Retention (NDR): 112% in Q4.
- Gross Margin (Q4 2024): 89%.
- Research and Development Expense (Q4 2024): $48.1 million, 18% of revenue.
- Sales and Marketing Expense (Q4 2024): $127.8 million, 48% of revenue.
- Net Income (Q4 2024): $57.3 million, up from $33.7 million in Q4 2023.
- Net Income (FY 2024): $183.3 million, up from $94.9 million.
- Diluted Net Income Per Share (Q4 2024): $1.08.
- Diluted Net Income Per Share (FY 2024): $3.50.
- Free Cash Flow (Q4 2024): $72.7 million, with a margin of 27%.
- Free Cash Flow (FY 2024): $295.8 million, with a margin of 30%.
- Cash and Cash Equivalents (End of Q4 2024): $1.41 billion.
- Employee Headcount: 2,508, an increase of 203 employees since Q3.
- Revenue Guidance (Q1 2025): $274 million to $276 million, growth of 26% to 27% year-over-year.
- Revenue Guidance (FY 2025): $1,208 million to $1,221 million, growth of 24% to 26% year-over-year.
- Free Cash Flow Guidance (FY 2025): $300 million to $308 million, with a margin of approximately 25%.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Monday.Com Ltd (MNDY, Financial) achieved a major milestone by reaching $1 billion in annual recurring revenue, highlighting the strong demand for its Work OS platform.
- The company reported a 32% increase in Q4 revenue year-over-year, reaching $268 million, and a 33% increase in FY24 revenue, totaling $972 million.
- Monday.Com Ltd (MNDY) was recognized as a leader in the Gartner Magic Quadrant in three categories, validating its strategic direction and customer value.
- Significant advancements were made in AI development, with the introduction of AI Blocks and a flexible, consumption-based pricing model for AI capabilities.
- The company successfully expanded into the enterprise market, growing its largest seat count to 80,000, indicating strong enterprise adoption and engagement.
Negative Points
- Despite strong financial performance, Monday.Com Ltd (MNDY) faces macroeconomic uncertainties, particularly in Europe, which could impact future growth.
- The company anticipates a negative impact from foreign exchange rates, estimating a 100 to 200 basis point effect on FY25 revenue.
- There is a cautious outlook on net dollar retention (NDR) due to demand volatility and macroeconomic uncertainty, despite recent improvements.
- The transition from product-led growth (PLG) to sales-led growth (SLG) has resulted in longer sales cycles, particularly for multiproduct deals.
- The company is still in the process of hiring a new Chief Revenue Officer (CRO), which could impact the execution of its go-to-market strategy.
