monday.com (MNDY) Q4 2024 earnings summary

Executive summary

• Achieved $1 billion in annual recurring revenue, with Q4 revenue at $268 million (32% YoY growth) and FY 2024 revenue at $972 million (33% YoY growth).

• Record operating margins and free cash flow delivered, reflecting business efficiency and scalability.

• Customer base expanded to 245,000, with strong upmarket momentum: 39% YoY growth in $50K+ ARR customers and 45% YoY growth in $100K+ ARR customers.

• Product innovation included the launch of monday service and Digital Workforce of AI Agents, driving strong adoption and cross-sell opportunities.

• Workforce increased by 35% in 2024 to over 2,500 employees, with further hiring planned for 2025.

Financial highlights

• Q4 gross margin was 89% (GAAP), 90% (non-GAAP); expected to remain in the high 80s to 90% range.

• Q4 net income was $57.3 million, up from $33.7 million in Q4 2023; FY 2024 net income was $183.3 million, up from $94.9 million.

• Diluted net income per share was $1.08 in Q4 and $3.50 for FY 2024 (non-GAAP).

• Free cash flow for Q4 was $72.7 million (27% margin); FY 2024 free cash flow was $295.8 million (30% margin).

• Ended Q4 with $1.41 billion in cash and cash equivalents.

Outlook and guidance

• Q1 2025 revenue expected between $274 million and $276 million, up 26%-27% year-over-year.

• FY 2025 revenue guidance is $1,208 million-$1,221 million (24%-26% growth), with non-GAAP operating income of $134 million-$142 million (11%-12% margin) and free cash flow of $300 million-$308 million (25% margin).

• Guidance assumes negative FX impact of 100-200 basis points and stable NDR at 112%.

• No AI revenue included in 2025 guidance due to early stage of monetization.

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