monday.com (MNDY) Q1 2025 earnings summary

Executive summary

• Q1 2025 revenue reached $282.3 million, up 30% year-over-year, with record operating profit and highest-ever quarterly cash flow, driven by strong multi-product and AI-powered feature adoption.

• Over 26 million AI actions performed, up 150% since end of 2024, and new enterprise work management features launched.

• Enterprise segment is the fastest-growing, with 38% YoY increase in $50k+ ARR customers and 46% YoY growth in $100k+ ARR customers.

• Customer base expanded to 245,000 by end of FY24, with a 22% CAGR from 2019-2024.

• Appointment of Casey George as Chief Revenue Officer to drive enterprise and go-to-market strategy.

Financial highlights

• Q1 revenue was $282.3 million, up from $217 million in Q1 2024, with gross margin at 90%.

• Adjusted free cash flow was $109.5 million, margin 39%; net income was $58.4 million, diluted EPS $1.10 (non-GAAP), and cash/equivalents at $1.53 billion.

• Non-GAAP operating income was $40.8 million (14% margin); GAAP operating income was $9.8 million (3% margin).

• R&D expense was $53.8 million (19% of revenue); sales and marketing expense was $135.9 million (48% of revenue).

• Net cash from operating activities was $112.0 million.

Outlook and guidance

• Q2 2025 revenue expected at $292–$294 million (24–25% growth), with non-GAAP operating income of $32–$34 million and margin of 11–12%.

• Full-year 2025 revenue guided to $1,220–$1,226 million (25–26% growth), with non-GAAP operating income of $144–$150 million and margin of ~12%.

• Full-year adjusted free cash flow expected at $310–$316 million (25–26% margin); FX headwind assumed at less than 1%.

• Guidance reflects a conservative approach due to macroeconomic uncertainty and stable but slightly declining NDR.

• Focus remains on expanding core product lines and cultivating a strong ecosystem.