Loop Capital analyst Mark Schappel recently revised the price target for Monday.com (MNDY, Financial), reducing it from $385 to $375, while sustaining a Buy recommendation. Schappel indicated that Monday.com's impressive first-quarter performance reinforces its position as a leader in the competitive arena of collaborative workflow tools, where it continues to distinguish itself from competitors.
The company's revenue increased by 30%, showing robust growth, while there was a significant rise in large customer acquisitions. Additionally, Monday.com displayed a healthy revenue retention rate of 116% among its $50K customer cohort, according to Loop's observations.
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 $349.14 with a high estimate of $450.00 and a low estimate of $280.00. The average target implies an upside of 25.06% from the current price of $279.17. 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 $340.86, suggesting a upside of 22.1% from the current price of $279.17. 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: May 12, 2025
- Revenue: $282 million, up 30% year-over-year.
- Gross Margin: 90% for Q1.
- Net Income: $58.4 million, up from $31.7 million in Q1 '24.
- Diluted Net Income Per Share: $1.10 based on 53 million fully diluted shares.
- Research and Development Expense: $53.8 million, 19% of revenue.
- Sales and Marketing Expense: $135.9 million, 48% of revenue.
- Total Employee Headcount: 2,695, an increase of 187 employees since Q4.
- Cash and Cash Equivalents: $1.53 billion, up from $1.41 billion at the end of Q4.
- Adjusted Free Cash Flow: $109.5 million, with a margin of 39%.
- Net Dollar Retention (NDR): Stable at 112% in Q1.
- Q2 2025 Revenue Guidance: $292 million to $294 million, growth of 24% to 25% year-over-year.
- Full Year 2025 Revenue Guidance: $1.220 billion to $1.226 billion, growth of 25% to 26% year-over-year.
- Full Year 2025 Adjusted Free Cash Flow Guidance: $310 million to $360 million, margin of 25% to 26%.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Monday.Com Ltd (MNDY, Financial) reported a robust revenue growth of 30% year over year for Q1 2025.
- The company achieved record quarterly operating profit and generated its highest ever cash flow for a single quarter.
- 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.
- The enterprise segment continues to be the fastest-growing, presenting significant opportunities for market share expansion.
- The appointment of Casey George as Chief Revenue Officer is expected to accelerate enterprise growth and strengthen customer relationships.
Negative Points
- Despite strong performance, there is macroeconomic uncertainty which may impact future results.
- Net Dollar Retention (NDR) is expected to be slightly below 112% by the end of the year due to market uncertainties.
- Research and development expenses increased to 19% of revenue, up from 16% in the previous year.
- The guidance for the full year 2025 reflects a conservative approach due to potential macroeconomic challenges.
- The company anticipates a negative impact from foreign exchange rates, though less than 100 basis points.
