Ayush BansalOn Wednesday, Monday.com Ltd. reported its financial results for the third quarter. Monday.com beat the analysts on both revenue and profit in the third quarter of 2021 and raised fourth-quarter guidance.
The revenue of the company is almost double with 95 per cent from the last prior quarter from $42 million to $83 million. The analysts’ consensus forecast for revenue had been $74.7 million and the company’s own guidance was $74-75 million.
GAAP operating loss was $29.2 million compared to a loss of $40.6 million, in the third quarter of 2020; GAAP operating margin was negative 35%, compared to negative 95% in the third quarter of 2020.
Net cash provided by operating activities was $3.8 million, with a positive adjusted free cash flow of $2.9 million, compared to net cash used in operating activities of negative $7.2 million and negative $7.8 million of adjusted free cash flow, in the third quarter of 2020.
monday.com cofounder and co-CEO, Roy Mann said, “We achieved another strong quarter of top-line growth driven by the continued rapid adoption of our Work OS by new customers along with expansion within our existing customer base.
“Cofounder and co-CEO Eran Zinman added, “Third quarter performance demonstrates that our platform’s unique low-code no-code technology is enabling more organizations to achieve their business goals by accelerating digitization and creating a unified workspace.”
Non-GAAP operating loss was $9.4 million compared to a loss of $30.9 million, in the third quarter of 2020; non-GAAP operating margin was negative 11% compared to negative 72%, in the third quarter of 2020.
GAAP net loss per basic and diluted share was $0.65 compared to GAAP net loss per basic and diluted share of $3.74, in the third quarter of 2020; non-GAAP net loss per basic and diluted share was $0.26 compared to non-GAAP net loss per basic and diluted share of $0.81, in the third quarter of 2020.
Financial Outlook:
For the fourth quarter of the fiscal year 2021, monday.com currently expects:
Total revenue of $87 to $88 million, representing year-over-year growth of 74% to 75%.
Non-GAAP operating loss of $23 million to $22 million.
Financial Statement:
|
MONDAY.COM LTD CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS |
|||||||||||
|
(U.S. dollars in thousands, except share and per share data; Unaudited) |
|||||||||||
|
|
|
Three months ended |
|
Nine months ended |
|||||||
|
|
|
2021 |
|
2020 |
|
2021 |
|
2020 |
|||
|
|
|
|
|
|
|
|
|
|
|||
|
Revenue |
$ |
83,018 |
$ |
42,592 |
$ |
212,605 |
$ |
110,981 |
|||
|
Cost of revenue |
|
10,213 |
|
6,333 |
|
27,245 |
|
15,807 |
|||
|
Gross profit |
|
72,805 |
|
36,259 |
|
185,360 |
|
95,174 |
|||
|
Operating expenses: |
|
|
|
|
|
|
|
|
|||
|
Research and development |
|
19,875 |
|
12,620 |
|
51,727 |
|
32,052 |
|||
|
Sales and marketing |
|
67,443 |
|
57,871 |
|
191,548 |
|
134,452 |
|||
|
General and administrative |
|
14,698 |
|
6,415 |
|
36,612 |
|
17,511 |
|||
|
Total operating expenses |
|
102,016 |
|
76,906 |
|
279,887 |
|
184,015 |
|||
|
Operating loss |
|
(29,211) |
|
(40,647) |
|
(94,527) |
|
(88,841) |
|||
|
Financial expense (income), net |
|
220 |
|
(239) |
|
985 |
|
(729) |
|||
|
Loss before income taxes |
|
(29,431) |
|
(40,408) |
|
(95,512) |
|
(88,112) |
|||
|
Income taxes (tax benefit) |
|
(585) |
|
671 |
|
1,177 |
|
1,230 |
|||
|
Net loss |
$ |
(28,846) |
$ |
(41,079) |
$ |
(96,689) |
$ |
(89,342) |
|||
|
Deemed dividend to preferred shareholders |
|
— |
|
(4,717) |
|
(8,203) |
|
(14,048) |
|||
|
Net loss attributable to ordinary shareholders |
$ |
(28,846) |
$ |
(45,796) |
$ |
(104,892) |
$ |
(103,390) |
|||
|
|
|
|
|
|
|
|
|
|
|||
|
Net loss per share attributable to ordinary shareholders, basic and diluted |
$ |
(0.65) |
$ |
(3.74) |
$ |
(4.12) |
$ |
(8.65) |
|||
|
Weighted-average ordinary shares used in calculating net loss per ordinary share, basic and diluted |
|
44,267,434 |
|
12,240,901 |
|
25,475,893 |
|
11,952,886 |
|||