Monday.com Stock Surges 19% On Q1 Earnings & Revenue Beat

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Monday.com (MNDY) reported first-quarter earnings and revenue that topped estimates, with the software maker's revenue guidance for the stock edged by views. The company reported a profit of 61 cents a share on an adjusted basis for the quarter ending March 31, up 335% from the previous year. Revenue rose 34% to $26.9 million, beating analysts' predictions of 40 cents on revenue of $210.5 million. For the current quarter ending in June, Monday.com predicted revenue of $228 million vs. estimates of $225.2 million.

Monday.com shares (MNDY) soared 19% to $217.35 in premarket trading, with the stock having retreated 3% in 2024. The workspace software provider competes with Asana (ASAN), Smartsheet (SMAR), and Atlassian (TEAM), among others. Monday.com (MNDY) raised $574 million in its June 2021 initial public offering, with MNDY stock priced at 155.

Monday.com (MNDY) added customers, set a free cash flow record, and gave better-than-expected guidance. The company posted first-quarter adjusted earnings per share (EPS) of $0.61, more than 50% above estimates compiled by Visible Alpha. Revenue increased 33.7% year-over-year to $216.9 million, also beating forecasts. Free cash flow was $89.9 million. As of the end of March, the number of customers with more than $100,000 in annual recurring revenue (ARR) skyrocketed 55% to 911, and those with more than $50,000 in ARR jumped 48% to 2,491.

Technical Outlook
Monday.com (MNDY) share is up 19.59% as of the time of writing, trading with a Relative Strength Index (RSI) of 65.96 which is within the overbought region. On the daily price chart, Monday.com (MNDY) share depicts an upside gap or Upward gapping which is a bullish reversal pattern as a result of the earnings beat.