Stock on monday is now down about 20% in Wall Street trading, after publishing its financial reports for the third quarter; This, even though the company overcame the forecasts and raised its annual forecast. Market estimates are that the reason for the declines lies in realizations. The stock has risen by about 73% since the beginning of the year and outperformed the market.
Monday, under the management of co-founders Eran Zinman and Roi Man, developed an organizational operating system designed to help manage work processes. In the third quarter, the company recorded revenues of 251 million dollars, which reflects a growth of 32.7% compared to the corresponding quarter, and is higher than the forecast it gave previously of 243-247 million dollars. In the first three quarters of the year, revenues grew by 33.6% to $704 million.
According to generally accepted accounting rules (GAAP), the quarter ended with an operating loss of $27.4 million and a net loss of $12 million – while in the corresponding quarter, the result was a profit in both parameters. Since the beginning of the year, the company is profitable with a net profit of 9.4 million dollars. On a non-GAAP basis, the net profit amounted to $45 million in the quarter and $126 million since the beginning of the year, which is 85 cents and $2.41 respectively, in the net profit per share – higher than analysts’ forecasts.
Monday makes predictions
Monday raises the forecasts again and expects to finish the year 2024 with revenues of 964-966 million dollars and a growth of 32%; This, compared to the previous forecast which was 956-961 million dollars. The annual Non-GAAP operating profit will reach 121-123 million dollars, a profitability rate of 12%-13%, while previously, there was talk of 100-105 million dollars and a rate of 10%-11%. The free flow forecast was raised from $270-275 million to $286-289 million.
“Monday concludes a strong third quarter, focusing on deepening our product capabilities and strengthening the platform, in order to support customers of various sizes and in a variety of industries,” said Roi Man and Eran Zinman, co-founders and CEOs of Monday. “We have reached a significant milestone in our journey as a company with Crossing the billion dollar threshold in the rate of annual recurring revenue (ARR), and we are looking forward and excited to enter the next phase in the continued growth of the company, while building on the strong infrastructure we have built.”
“We are satisfied with the results in the third quarter, with stable growth in revenue and profitability, and an improvement in customer retention indicators, as we continue to increase the number of our customers and expand to larger customers,” said Eliran Glazer, Monday’s CFO. “Looking ahead to the rest of 2024 And towards the year 2025, we believe in our ability to maintain continued strong and efficient growth.”
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