monday.com Q4 Earnings Report Preview: What To Look For

Jabin Bastian /
2022/02/22 6:27 am EST
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Project management software maker Monday.com (NASDAQ:MNDY) will be announcing earnings results tomorrow morning. Here's what to look for.

Last quarter monday.com reported revenues of $83 million, up 94.9% year on year, beating analyst revenue expectations by 11.1%. It was an exceptional quarter for the company, with an impressive beat of analyst estimates and a very optimistic guidance for the next quarter. The company added 143 enterprise customers paying more than $50,000 annually to a total of 613.

Is monday.com buy or sell heading into the earnings? Read our full analysis here, it's free.

This quarter analysts are expecting monday.com's revenue to grow 75.1% year on year to $87.7 million, slowing down from the 88.5% year-over-year increase in revenue the company had recorded in the same quarter last year. Adjusted loss is expected to come in at -$0.52 per share.

monday.com Total Revenue

The analysts covering the company have been growing increasingly bullish about the business heading into the earnings, with revenue estimates seeing 6 upwards revisions over the last thirty days. The company has a history of exceeding Wall St's expectations, beating revenue estimates every single time since going public on average by 12.4%.

Looking at monday.com's peers in the productivity software segment, some of them have already reported Q4 earnings results, giving us a hint what we can expect. Atlassian (NASDAQ:TEAM) delivered top-line growth of 37.3% year on year, beating analyst estimates by 7.16% and ServiceNow (NYSE:NOW) reported revenues up 29% year on year, exceeding estimates by 0.6%. Atlassian traded up 9.91% on the results, ServiceNow was up 9.6%. Read our full analysis of Atlassian's results here and ServiceNow's results here.

Tech stocks have had a rocky start in 2022 and while some of the software stocks have fared somewhat better, they have not been spared, with share price declining 5.78% over the last month. Monday.com is down 8.43% during the same time, and is heading into the earnings with analyst price target of $368.2, compared to share price of $192.5.

One way to find opportunities in the market is to watch for generational shifts in the economy. Almost every company is slowly finding itself becoming a technology company and facing cybersecurity risks and as a result, the demand for cloud-native cybersecurity is skyrocketing. This company is leading a massive technological shift in the industry and with revenue growth of 70% year on year and best-in-class SaaS metrics it should definitely be on your radar.

The author has no position in any of the stocks mentioned.