Monday.com shares slip 10% as in line guidance disappoints
AInvestMonday, Feb 12, 2024 10:10 am ET
1min read
MNDY --

Key Financial Highlights

* Revenue of $202.6 million, an increase of 35% year-over-year, beating expectations.

* Non-GAAP operating income of $21.2 million, compared to $14.3 million in the same period last year, indicating strong operating margins of 10%.

* Non-GAAP  diluted net income per share of  $0.65, respectively, compared $0.44 in the same period last year.

* Free cash flow of $55.4 million, compared to $29.7 million in the same period last year.

monday.com, a leading global work operating system (Work OS) provider, reported its Q4 2023 earnings on Tuesday morning, exceeding expectations and boosting investor confidence. The company's shares rose more than 18% in reaction to the results.

The company's earnings per share (EPS) came in at $0.65, beating the consensus of $0.32 by $0.33. Revenues for the quarter reached $202.6 million, a 35.5% increase year-over-year compared to the expectations of $197.97 million.

monday.com provided guidance for the first quarter of fiscal year 2024 and the full year 2024. The company expects total revenue to grow by 27% to 30% in Q1 and by 27% to 28% in FY24. Non-GAAP operating income is projected to be between $58 million and $64 million, with operating margins of 6% to 7%. Free cash flow is expected to reach $200 million to $206 million, with a free cash flow margin of approximately 22%. The results were in line with expectations which is viewed as a disappointment and the primary reason the stock is down 10%. 

monday.com's performance in Q4 2023 can be attributed to its innovative Work OS platform, which has gained significant traction among businesses of all sizes. The platform's ability to streamline workflows, enhance communication, and improve efficiency has made it an indispensable tool for organizations worldwide.

Overall, monday.com's Q4 2023 earnings report highlights the company's  financial performance and its potential for continued growth in the future. The guidance led to some profit taking but we are seeing the stock hold the $200-psyche and bounce back. Traders should be prepared to trade both long and short as this is setting up to be a volatile play in today"s trading session. 

$MNDY(MNDY)

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