Project management software maker Monday.com (NASDAQ:MNDY) will be announcing earnings results tomorrow morning. Here’s what investors should know.
Monday.com beat analysts’ revenue expectations by 1.2% last quarter, reporting revenues of $251 million, up 32.7% year on year. It was a strong quarter for the company, with an impressive beat of analysts’ EBITDA estimates and a narrow beat of analysts’ annual recurring revenue estimates. It added 194 enterprise customers paying more than $50,000 annually to reach a total of 2,907.
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 29% year on year to $261.3 million, slowing from the 35.1% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.79 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 3.4% on average.
Looking at Monday.com’s peers in the productivity software segment, some have already reported their Q4 results, giving us a hint as to what we can expect. Atlassian delivered year-on-year revenue growth of 21.4%, beating analysts’ expectations by 3.4%, and Microsoft reported revenues up 12.3%, topping estimates by 1.1%. Atlassian traded up 15.2% following the results while Microsoft was down 6.1%.
Read our full analysis of Atlassian’s results here and Microsoft’s results here.
There has been positive sentiment among investors in the productivity software segment, with share prices up 9.3% on average over the last month. Monday.com is up 20.2% during the same time and is heading into earnings with an average analyst price target of $314.01 (compared to the current share price of $256).
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