Israeli work operating systems company monday.com (Nasdaq: MNDY) share price is up 30% on Wall Street after beating the analysts’ consensus in its fourth quarter 2024 results and setting out its AI vision and strategy. The company, managed by cofounders and co-CEOs Roy Mann and Eran Zinman, reported fourth quarter revenue of $268 million, up 32.3% from the corresponding quarter, and higher than the analysts’ estimates. In full year 2024, revenue was $972 million, up 32% from 2023.
Mann and Zinman said in a statement, “2024 was an exceptional year for monday, characterized by accelerated innovation, new product development, and successful implementation of the marketing strategy, which drove strong demand from customers and organizations of all sizes. In 2025, we will significantly increase our development efforts in the field of AI, with advanced integration of AI Blocks and the launch of Digital Workforce – a new array based on AI agents. We believe that AI will become a key tool that will help our customers optimize their work processes and grow faster than ever.”
At close of trade yesterday monday.com had a market cap of $13 billion, up 14% over the past year. In morning trading on Nasdaq the company’s share price is up 30%, giving a market cap of $16.9 billion, making it the fourth most valuable Israeli company after Check Point Software (Nasdaq: CHKP), Teva Pharmaceuticals (NYSE: TEVA; TASE: TEVA) and CyberArk (Nasdaq: CYBR).
In the fourth quarter, monday.com reported GAAP net profit of $23 million compared with $12.3 million in the corresponding quarter of 2023. In full-year 2024, GAAP net profit was $32.4 million after a net loss of $1.9 million in 2023.
Non-GAAP net profit was $57.3 million in the fourth quarter, up 70% from the fourth quarter of 2023 and earnings per share was $1.08, well above the analysts’ expectations. In full-year 2024 non-GAAP net profit was $183 million and $3.50 per share, up 93.1% from 2023.
monday.com produced $311 million from operating activities during the year and free cash flow was about $296 million. At the end of the year, the company had $1.46 billion in cash.
Monday.com expects to surpass the $1 billion annual revenue threshold in 2025, and according to its guidance, revenue will grow this year by 24%-26% to $1.208-1.221 billion, similar to market forecasts (the forecast includes a negative impact from exchange rate fluctuations). Non-GAAP operating income will amount to $134-142 million, a rate of 11%-12% of revenue, compared to 13.6% in 2024, and free cash flow will be $300-308 million. In the first quarter of 2025, the company sees revenue of $274-276 million and non-GAAP operating profit of $25-27 million.
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Pillars of the AI vision
In its financial report, monday.com also announced its AI vision, which the company says, constitutes a main pillar of the strategy, and announced the availability of a new product – Monday Service, which is based on AI capabilities and allows teams in the organization to provide an exceptional service experience. According to Monday, the company’s approach is to provide a solution to the unique challenges of employees and businesses and to give a competitive advantage to small and medium-sized businesses by allowing them to grow and change business processes quickly and without allocating additional resources. At the same time, large companies will be able to accelerate processes that have slowed down due to their size. According to the company, its capabilities allow anyone, regardless of their technological background, to become an AI developer.
The company lists three pillars of its AI vision, which are designed to simplify and streamline the work of teams: AI Blocks, which are modular AI actions that are customized, and enable, for example, data analysis; Product Power-ups, which are AI capabilities that will be integrated into the company’s products and help streamline business processes such as resource allocation and risk management; and Digital Workforce, which is a team of AI agents that will provide solutions for tasks such as identifying recurring issues in customer service. The company will launch its first AI agent next month.
Published by Globes, Israel business news – en.globes.co.il – on February 10, 2025.
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