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.

• Rapid AI adoption with over 26 million AI actions performed, up 150% since end of 2024.

• Enterprise segment is the fastest-growing, supported by new enterprise-tier features and the appointment of Casey George as Chief Revenue Officer.

• Customer base expanded to 245,000 by end of FY24, with 38% YoY growth in $50k+ ARR customers and 46% YoY growth in $100k+ ARR customers.

• Platform serves 200+ industries in over 200 global markets, with 54% of revenue from North America.

Financial highlights

• Q1 revenue was $282.3 million, up from $217 million in Q1 2024.

• Gross margin was 90% (GAAP and non-GAAP); research and development expense was $53.8 million (19% of revenue).

• Sales and marketing expense was $135.9 million (48% of revenue), down from 56% a year ago.

• Net income was $58.4 million (non-GAAP) and $27.4 million (GAAP); diluted EPS was $1.10 (non-GAAP) and $0.52 (GAAP).

• Adjusted free cash flow was $109.5 million, margin 39%.

Outlook and guidance

• Q2 2025 revenue expected between $292 million and $294 million, up 24–25% year-over-year.

• Q2 non-GAAP operating income projected at $32–$34 million, margin 11–12%.

• Full-year 2025 revenue guidance is $1,220–$1,226 million, up 25–26% year-over-year, with negative FX impact of less than 1%.

• Full-year non-GAAP operating income expected at $144–$150 million (margin ~12%); adjusted free cash flow of $310–$316 million (margin 25–26%).

• NDR expected to be slightly below 112% by year-end due to macro uncertainty.