What To Expect From monday.com’s (MNDY) Q4 Earnings

Kayode Omotosho /
2023/02/10 4:05 am EST
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Project management software maker Monday.com (NASDAQ:MNDY) will be reporting results next Monday morning. Here's what to look for.

Last quarter monday.com reported revenues of $136.9 million, up 64.9% year on year, beating analyst revenue expectations by 4.94%. It was a strong quarter for the company, with exceptional revenue growth and a decent beat of analyst estimates. The company added 163 enterprise customers paying more than $50,000 annually to a total of 1,323.

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 47.9% year on year to $141.3 million, slowing down from the 90.5% year-over-year increase in revenue the company had recorded in the same quarter last year. Adjusted loss is expected to come in at -$0.38 per share.

monday.com Total Revenue

Majority of analysts covering the company have reconfirmed their estimates over the last thirty days, suggesting they are expecting the business to stay the course heading into the earnings. The company has a history of exceeding Wall St's expectations, beating revenue estimates every single time over the past two years on average by 8.39%.

Looking at monday.com's peers in the productivity software segment, some of them have already reported Q4 earnings results, giving us a hint of what we can expect. Atlassian delivered top-line growth of 26.7% year on year, beating analyst estimates by 2.74% and 8x8 reported revenues up 17.5% year on year, missing analyst estimates by 0.91%. Atlassian traded down 10.0% on the results, 8x8 was flat on the results. Read our full analysis of Atlassian's results here and 8x8's results here.

There has been positive sentiment among investors in the software segment, with the stocks up on average 18.4% over the last month. monday.com is up 37.1% during the same time, and is heading into the earnings with analyst price target of $151.8, compared to share price of $142.42.

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.