monday.com reports $972m revenue in 2024, targets $1.2bn in 2025

Overview

monday.com delivered important financial results in 2024, with full-year revenue reaching $972m and surpassing $1bn in annual recurring revenue (ARR) for the first time. The company reported record non-GAAP operating income and free cash flow, driven by continued product innovation, strong customer expansion, and high retention rates.

Co-CEOs Roy Mann and Eran Zinman stated: “2024 was a remarkable year for monday.com, reflecting our rapid product innovation and focus on go-to-market execution, driving strong demand across customers of all sizes. We are proud to have further expanded our product suite with monday service, which is already seeing rapid adoption from both existing and new customers. As we look to 2025, we are excited to double-down on our AI efforts, with a focus on AI Blocks, Product Power-ups, and our new Digital Workforce of AI Agents. We believe AI can be a game-changer for our customers, giving them the ability to transform their workflows and scale faster than ever before.”

Q4 2024 vs. Q4 2023:

Total revenue was $268m (+32% YoY), driven by strong customer expansion and product adoption.
GAAP operating income reached $9.6m, compared to a $(1.1m) loss in Q4 2023, reflecting improved operational efficiency. Non-GAAP operating income grew to $40.3m (+90% YoY), with an operating margin of 15% (compared to 10% in Q4 2023).
GAAP net income per share was $0.45 (basic) and $0.43 (diluted), compared to $0.25 and $0.24 in Q4 2023. Non-GAAP net income per share increased to $1.13 (basic, +64% YoY) and $1.08 (diluted, +66% YoY).
Net dollar retention rate remained high at 112% overall, with 115% for customers spending over $50,000 annually.
Free cash flow totaled $72.7m (+31% YoY), maintaining a 27% free cash flow margin, highlighting strong profitability and cash generation.

Full-Year 2024 highlights:

Total revenue for FY2024 reached $972m (+33% YoY), driven by expanded adoption and strong customer growth.
GAAP operating loss improved to $(21.0m), compared to $(38.6m) in 2023, as a result of better cost control and operational efficiency.
Non-GAAP operating income more than doubled to $132.4m (+115% vs. 2023), achieving a 14% operating margin (compared to 8% in FY2023).
GAAP net income per share was $0.65 (basic) and $0.62 (diluted), a significant improvement from a $(0.04) loss per share in 2023. Non-GAAP net income per share increased substantially to $3.67 (basic, +87% YoY) and $3.50 (diluted, +89% YoY), reflecting strong top-line growth and disciplined cost management.
Net cash provided by operating activities was $311.1m (+44% vs. 2023), with $295.8m of free cash flow (+44% YoY), with a 30% free cash flow margin, highlighting profitability improvements and efficient capital allocation.
Customers spending over $100,000 annually (+45% YoY), reinforcing monday.com’s position as an enterprise-grade solution.
The number of paid customers with more than 10 users grew to 59,214 (+10% YoY), highlighting rising adoption across businesses of all sizes.

For 2025, monday.com expects another strong year, driven by continued revenue expansion, AI-powered workflow solutions, and increasing enterprise adoption. Q1 2025 revenue is forecasted between $274m – $276m (+26% to +27% YoY), despite a negative FX impact of 100–200 basis points, reflecting strong demand across all customer segments. Full-year 2025 revenue is expected to reach $1.21bn – $1.22bn (+24% to +26% YoY), supported by customer expansion, deeper product adoption, and increased enterprise deals. Non-GAAP operating income is projected at $134m – $142m, with a margin of 11% to 12%, reflecting ongoing investments in AI and automation while maintaining profitability discipline. Free cash flow is estimated at $300m – $308m, maintaining a 25% free cash flow margin, demonstrating strong financial discipline and continued operational efficiency. AI & product expansion remains a key focus, with heavy investment in AI-driven automation, workflow enhancements, and expanding multi-product offerings, positioning monday.com for long-term innovation and customer retention.

After reporting the results, but also after the optimistic announcements regarding the prospects for this year, the price of MNDY shares appreciated by over +21%, after which, towards the end of the trading week, their price stabilized around $318.50.