Shares of Monday.com (MNDY 4.15%) were up 10% as of 3:30 p.m. ET, according to data provided by S&P Global Market Intelligence, after the work management software company announced strong quarterly results.
Monday's third-quarter 2023 revenue climbed 38% year over year to $189.2 million, translating to non-GAAP (adjusted) earnings of $0.64 per share. Analysts, on average, were only expecting earnings of $0.21 per share on revenue of $182.5 million.
NASDAQ: MNDY
Key Data Points
On Monday.com's strong revenue retention and customer demand
Net-dollar retention rate (NDRR) arrived at over 110% -- meaning existing customers spent 10% more on Monday's solutions, on average, after their first year. The metric climbed even higher for larger customers, with NDRR standing at 115% both for customers with over 10 users and those generating more than $50,000 in annual recurring revenue. Monday.com ended the quarter with 2,077 customers in the latter category, up 57% from 1,323 at the same point a year ago.
Monday.com co-founders and co-CEOs Roy Mann and Eran Zinman called it "another strong quarter [...] with continued momentum from our multi-product strategy and robust customer demand."
What's next for Monday.com stock?
Given its relative outperformance in the third quarter, Monday.com raised its full-year 2023 outlook to call for revenue of $723 million to $725 million (up from previous guidance for a range of $713 million to $717 million) or growth of 39% to 40% from 2022. Here again, most analysts were only modeling 2023 revenue closer to $715 million.
In the end, this was another straightforward beat-and-raise performance from Monday.com. With shares now up nearly 30% year to date -- but still nearly 20% below their 52-week high set in July -- I see no reason the stock won't continue to outperform from here.
