What To Expect From Monday.com's (MNDY) Q1 Earnings

Max Juang /
2024/05/14 3:02 am EDT

Project management software maker Monday.com (NASDAQ:MNDY) will be announcing earnings results tomorrow before market hours. Here's what you need to know.

Monday.com beat analysts' revenue expectations by 2.4% last quarter, reporting revenues of $202.6 million, up 35.1% year on year. It was a mixed quarter for the company, with a decent beat of analysts' ARR (annual recurring revenue) estimates but management forecasting growth to slow. It added 218 enterprise customers paying more than $50,000 annually to reach a total of 2,295.

Is Monday.com a buy or sell going into earnings? Read our full analysis here, it's free.

This quarter, analysts are expecting Monday.com's revenue to grow 29.8% year on year to $210.6 million, slowing from the 49.5% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.40 per share.

Monday.com Total Revenue

The majority of analysts covering the company have reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Monday.com has a history of exceeding Wall Street's expectations, beating revenue estimates every single time over the past two years by 4.6% on average.

Looking at Monday.com's peers in the productivity software segment, some have already reported their Q1 results, giving us a hint as to what we can expect. Atlassian delivered year-on-year revenue growth of 29.9%, beating analysts' expectations by 8.1%, and 8x8 reported a revenue decline of 2.8%, in line with consensus estimates. Atlassian traded down8.2% following the results while 8x8 was flat.

Read our full analysis of Atlassian's results here and 8x8's results here.

There has been positive sentiment among investors in the productivity software segment, with share prices up 4.1% on average over the last month. Monday.com is down 1.2% during the same time and is heading into earnings with an average analyst price target of $245.3 (compared to the current share price of $181.95).

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