Monday.com's third-quarter results have exceeded Wall Street's expectations, highlighting the resilience of the project management software provider despite a challenging macroeconomic backdrop. Adjusted earnings for the September quarter stood at $0.85 per share, an increase from $0.64 the previous year, surpassing the Capital IQ consensus of $0.63.
The company reported a significant revenue surge of 33%, reaching $251 million, outstripping analysts' estimates of $246.3 million. The number of paid customers generating over $50,000 in annual recurring revenue soared 40% year-on-year, totaling 2,907 by the end of September. Additionally, clients with more than $100,000 in annual recurring revenue increased by 44%.
The overall net dollar retention rate maintained an impressive 111%. Despite these promising figures, the provider's ability to acquire pure enterprise customers faced challenges due to a slowdown in hiring and sales in the current macro environment, as noted by Chief Financial Officer Eliran Glazer during the earnings conference call.
“We do see a little bit less customer adds, but that's part of our price increase and product strategy that we focus not just on small and medium businesses but also on large enterprises,” stated co-Chief Executive Eran Zinman to analysts. In Monday's trading session, the firm's US-listed stock experienced a 16% drop.
Looking ahead, for the full-year 2024, the company has adjusted its revenue expectations to a range between $964 million and $966 million, an increase from previous projections of $956 million to $961 million. The street forecasts revenue at approximately $960.3 million. Adjusted operating income expectations are set between $121 million to $123 million, compared to earlier forecasts of $100 million to $105 million. For the ongoing three-month period, Monday.com anticipates revenue between $260 million and $262 million, indicating an annual growth rate of 28% to 29%.
Analysts have projected revenue around $261 million. Glazer commented on the ongoing macro headwinds that have forced many customers to adopt a more cautious spending approach. In leadership news, the company appointed Adi Dar as the new Chief Operating Officer, succeeding Yoni Osherov, who will step down as Chief Revenue Officer at the end of December.
Dar previously led Elbit Systems' electro-optics subsidiary, ELOP. The company is currently seeking a successor for Osherov..