Monday.com’s Magical Monday

Mondays can be a downer, especially if you’ve been a software stock investor over the last two years. However, today was a bit better after Monday.com reported better-than-expected first-quarter results. 👍

The cloud-based work management tool competes with Asana, Smartsheet, Atlassian, Adobe, and Microsoft. Unfortunately, like its peers, it fell drastically from its late 2021/early 2022 highs, dropping nearly 85% at its November 2022 low. 😶‍🌫️

Today the company posted adjusted earnings per share of $0.14, which topped the expected $0.28 loss. In addition, revenues of $162.3 million and billings of $193.3 million beat estimates of $155.8 and $176 million, respectively. 

Looking ahead, executives raised their full-year revenue outlook to $702-$706 million. They’re confident that momentum can continue as they roll out mondayDB and introduce transformative AI capabilities to the platform. New features and functionality have driven upmarket growth, with enterprise-level customers growing to over 1,600. 🔮

What excited investors most is that executives expect to achieve non-GAAP operating profitability in the fiscal year 2023. That’s two years ahead of their prior expectations and a welcome sign for investors that are prioritizing profitability over revenue growth. While non-GAAP operating income of $8-$12 million and an operating margin of 1% are small, they’re better than nothing. 🤷

Overall, it was a good day for $MNDY investors as shares rose 16%. However, many remain melancholy since the stock is still down 65% from all-time highs. 🔺

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