monday.com (MNDY) Q1 2025 Earnings Call Transcript | The Motley Fool

Image source: The Motley Fool. Date Monday, May 12, 2025 at 8:30 a.m. ET Call participants Co-Chief Executive Officer & Co-Founder - Roy Mann Co-Chief Executive Officer & Co-Founder - Eran Zinman Chief Financial Officer - Eliran Glazer Need a quote from a Motley Fool analyst? Email [email protected] Takeaways Revenue -- $282 million, representing 30% year-over-year growth. Operating Profit -- Record quarterly operating profit achieved in Q1. Net Income -- $58.4 million, compared to $31.7 million in the year-ago quarter. Diluted Net Income per Share -- $1.10, calculated on 53 million fully diluted shares outstanding. Gross Margin -- 90% for the quarter; medium to long-term expectations are in the high 80s percentage range. Net Dollar Retention (NDR) -- Stable at 112% on a trailing four-quarter weighted average; guidance for year-end calls for a level slightly below 112%. Research & Development Expense -- $53.8 million, or 19% of revenue, up from 16% of revenue a year ago. Sales & Marketing Expense -- $135.9 million, or 48% of revenue, compared to 56% a year ago. Employee Headcount -- 2,695 as of quarter-end, an increase of 187 from Q4; headcount is expected to grow approximately 30% in fiscal year 2025. Cash & Cash Equivalents -- $1.53 billion at quarter close, up from $1.41 billion at the end of Q4. Adjusted Free Cash Flow -- $109.5 million for the quarter; adjusted free cash flow margin was 39%. User AI Actions -- Over 26 million AI actions performed to date, up more than 150% since year-end 2024. Enterprise Segment Growth -- Explicitly identified as the fastest growing segment, with new capabilities launched for the enterprise tier. Chief Revenue Officer Appointment -- Casey George appointed as the company's first global C-level leader, bringing nearly 30 years of enterprise software experience. Q2 2025 Revenue Guidance -- $292 million to $294 million, representing year-over-year growth of 24%-25%. Q2 2025 Non-GAAP Operating Income Guidance -- $32 million to $34 million, with non-GAAP operating margin expected between 11%-12%. Full-Year 2025 Revenue Guidance -- $1,220 million to $1,226 million, up 25%-26% year over year; includes less than 1% negative impact from FX. Full-Year 2025 Non-GAAP Operating Income Guidance -- $144 million to $150 million with expected non-GAAP operating margin of approximately 12%. Full-Year 2025 Adjusted Free Cash Flow Guidance -- $310 million to $316 million, with adjusted free cash flow margin of 25%-26%. Summary monday.com ( MNDY 2.44%) reported 30% revenue growth, record operating profit, and the highest ever quarterly cash flow, with user AI actions increasing by over 150% and new enterprise product features launched. Management expects Net Dollar Retention to be slightly below 112% by year-end, citing macroeconomic uncertainty as the primary factor for this conservative outlook. Q2 and full-year 2025 guidance were provided, incorporating less than a 1% negative FX impact and conservative expectations for customer expansion. Product adoption momentum was noted across all segments, especially enterprise, with new enterprise-focused features such as AI-driven risk insights and portfolio reports. The company highlighted an expected 30% increase in...

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