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Key Takeaways
- Monday.com added customers, set a free cash flow record, and gave better-than-expected guidance.
- The workspace software provider beat profit and sales estimates in the first quarter.
- The company said it had strong demand for its products across all ends of the market.
Shares of Monday.com ( MNDY ) soared Wednesday after the maker of cloud-based workflow software reported a big gain in customers, record free cash flow , and a better-than-expected outlook.
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.
Pricing Model Changes ‘Exceeded Our Initial Expectations’
Co-founders and co- Chief Executive Officers (CEOs ) Roy Mann and Eran Zinman said Monday.com saw “strong demand for our products across all ends of the market.” CFO Eliran Glazer added that the results were boosted by “recent adjustments made to our pricing model, which thus far have exceeded our initial expectations.”
The company predicted full-year revenue in the range of $942 million to $948 million, exceeding estimates.
Monday.com shares surged 21% to $220.93 as of 10 a.m. ET Wednesday, moving into positive territory for the year.