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Highlights
- Monday.com booked a 95% increase in revenue YoY to US$83.0 million.
- The GAAP net loss fell to US$28.8 million from US$41.08 million a year ago.
- The MNDY stock grew 36.33% in the last three months.
Software company Monday.com (NASDAQ:MNDY) on Wednesday reported revenue growth of 95% in its third quarter of fiscal 2021, helped by robust demand for work management tools.
The MNDY stock traded at US$433.00, down 2.63%, in the premarket on Wednesday.
Quarterly Performance
The company posted revenue of US$83.0 million in the quarter ended September 30, 2021, up 95% YoY, compared to US$42.6 million in the corresponding quarter of 2020.
Its GAAP operating loss was US$29.2 million, with a negative 35% operating margin, compared to the operating loss of US$40.6 million, with a negative 95% operating margin a year ago.
Also, the GAAP net loss was US$28.8 million or US$(0.65) per share diluted, compared to the GAAP net loss of US$41.08 million or US$(3.74) loss per share diluted in Q3 2020.
Monday.com’s non-GAAP net loss per share diluted was US$(0.26) against US$(0.81) in the September quarter a year ago.
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The company's non-GAAP operating loss was US$9.4 million versus a loss of US$30.9 million in Q3 of 2020. The non-GAAP operating margin was negative 11%, much less than negative 72% in the previous year's third quarter.
Its net cash from operating activities was US$3.8 million, with an adjusted free cash flow of US$2.9 million. In Q3 of 2020, both the cash from operations and the adjusted free cash flow were in the negative at US$7.2 million and US$7.8 million, respectively.
Furthermore, the cash and cash equivalents were US$876.2 million, including IPO and private placement proceeds of US$735.9 million, at the end of the quarter.
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Outlook for the fourth quarter
The company expects its total revenue to be in the range of US$87 million to US$88 million, with a 74% to 75% growth YoY, respectively. The non-GAAP operating loss is to remain within US$23 million to US$22 million in the fourth quarter of 2021.
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Outlook for the full year 2021
Monday.com expects total revenue to be in the range of US$300 million to US$301 million, with an 86% to 87% growth YoY, respectively, and the non-GAAP operating loss to be within US$65 million to US$64 million, with an expected 22% to 21% negative operating margin.
Tel Aviv, Israel-based Monday.com is an open platform used by organizations to manage teams, projects, and overall work management. The company has more than 27,000 customers in around 190 countries.
The company brought its IPO in June this year. Its current market cap is US$19.6 billion. The stock closed at US$444.70 on Nov 9 and gained around 36.33% in the last three months.
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Bottomline
Although the company booked solid revenue in the quarter, the bottom line remained in the negative territory. Its customer numbers grew 231% YoY to 613 in the quarter, accounting for annual recurring revenue of over US$50,000, against 185 in Q3 of 2020. Investors, however, must analyze the company fundamentals carefully before investing in stocks.
