Project management software maker Monday.com (NASDAQ: MNDY) will be reporting results tomorrow before the bell. Here’s what to expect.
Monday.com beat analysts’ revenue expectations by 2.5% last quarter, reporting revenues of $268 million, up 32.3% year on year. It was a strong quarter for the company, with an impressive beat of analysts’ EBITDA estimates and a significant improvement in its net revenue retention rate. It added 294 enterprise customers paying more than $50,000 annually to reach a total of 3,201.
Is Monday.com a buy or sell going into earnings? Read our full analysis here, it’s free.
This quarter, analysts are expecting Monday.com’s revenue to grow 27.2% year on year to $276 million, slowing from the 33.7% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.70 per share.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Monday.com has a history of exceeding Wall Street’s expectations, beating revenue estimates every single time over the past two years by 3% on average.
Looking at Monday.com’s peers in the productivity software segment, some have already reported their Q1 results, giving us a hint as to what we can expect. Atlassian delivered year-on-year revenue growth of 14.1%, meeting analysts’ expectations, and Pegasystems reported revenues up 44.1%, topping estimates by 33.1%. Atlassian traded down 8.9% following the results while Pegasystems was up 28.8%.
Read our full analysis of Atlassian’s results here and Pegasystems’s results here.
There has been positive sentiment among investors in the productivity software segment, with share prices up 12.9% on average over the last month. Monday.com is up 14.7% during the same time and is heading into earnings with an average analyst price target of $343.89 (compared to the current share price of $282.00).
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