MNDY - monday.com Stock: Ripe For A Breather (Rating Downgrade)
2024-02-12 14:28:09 ET
Summary
- For Q4 2023, monday.com Ltd. reported strong numbers with revenue growth of 35% y/y and a narrower-than-expected GAAP operating loss.
- Despite somewhat disappointing guidance, an ongoing platform expansion and upmarket move into the enterprise render monday.com an interesting investment idea.
- In today's note, we reflect on monday.com's Q4 results and in-line outlook for Q1 '24 and FY-2024. Furthermore, I will share my updated valuation model and investment strategy for monday.com Ltd. stock.
Brief Review Of monday.com's Q4 2023 Report
Earlier this morning, monday.com Ltd. ( MNDY ) reported stronger-than-expected numbers for Q4 2023 , with quarterly revenues growing by 35% y/y to $202.6M and the Work OS platform company reporting a narrower-than-expected GAAP operating loss of -$1.1M [GAAP operating margin of -1% vs. -7% from a year ago period]. While monday.com is not profitable on a GAAP-basis, the company reported positive non-GAAP operating income of $21.2M (non-GAAP operating margin: 10%) and free cash flow of $55.4M (FCF margin: 27%) for Q4 2023....
monday.com Stock: Ripe For A Breather (Rating Downgrade)