Monday.com (MNDY) Q4 Earnings: Key Metrics to Watch

Monday.com (MNDY) is set to report its fourth-quarter fiscal 2024 earnings on Feb. 10, 2025. As investors await the results, here are some key financial metrics to focus on:

1. Revenue Growth: The consensus estimate for Q4 revenue is $261.14 million, indicating an increase of 28.91% from the year-ago quarter. This growth is in line with the company's guidance for total revenues in the range of $60-$262 million, indicating year-over-year growth of 28-29%. Investors should compare this to the actual revenue reported by the company and assess whether it meets or exceeds expectations.

2. Earnings per Share (EPS): The consensus estimate for MNDY's earnings has remained steady at 78 cents per share over the past 30 days, indicating an increase of 20% from the year-ago quarter. Investors should compare this to the actual EPS reported by the company and evaluate whether it meets or exceeds expectations.

3. Net Dollar Retention Rates: This metric is crucial for assessing the company's ability to retain and grow its customer base. In the third quarter, Monday.com reported net dollar retention rates of 111%. Investors should look for any changes in this metric and compare it to the company's historical trends.
4. Enterprise Customer Additions: This metric is essential for evaluating the company's growth in the enterprise segment. Investors should compare the actual number of enterprise customer additions to the company's historical trends and analysts' expectations.
5. Progress in Cross-Selling Newer Products: Monday.com has been expanding its product offerings, such as monday service and monday CRM. Investors should assess the progress made in cross-selling these newer products and compare it to the company's historical trends.
6. Operating Efficiency: Investors should focus on the company's non-GAAP operating income margin and free cash flow margin. Monday.com guided for fourth-quarter non-GAAP operating income between $29 million and $31 million (11-12% margin) and free cash flow of $63-$66 million (24-25% margin). Investors should compare these metrics to the actual results reported by the company and assess whether they meet or exceed expectations.

By analyzing these key financial metrics, investors can evaluate Monday.com's Q4 performance, compare it to analysts' expectations, and assess how it aligns with the company's historical trends. This will provide valuable insights into the company's growth prospects and help investors make informed decisions about their investments in MNDY.