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Shares of project management software company monday.com (NASDAQ:MNDY) surged nearly 20% in premarket trading on Wednesday after it reported stronger-than-expected first-quarter results and increased its guidance for the rest of the fiscal year.
The Tel Aviv-based company earned an adjusted $0.61 per share for the period ending March 31, well above the $0.40 that analysts were expecting. Sales surged 33.6% year-over-year to $216.91M, topping estimates by $6.29M.
The company said it had 55,515 customers with 10 or more paid users, up 18% year-over-year. Paid customers with more than $50,000 in annual recurring revenue rose 48% year-over-year to 2,491. Customers with more than $100,000 in annual recurring revenue rose 55% year-over-year to 911.
Looking to the second-quarter, monday.com, which competes with companies like Smartsheet (SMAR), Asana (ASAN) and others, expects second-quarter revenue to be between $226M and $230M, above the $225.2M analysts were expecting. Adjusted profit for the period is expected to be between $17M and $21M.
The company also raised its full-year revenue and adjusted operating profit on the back of the strong results. It now expects full-year sales to be between $942M and $948M, up from a prior range of $926M to $932M.
Adjusted profit for the full-year is expected to be between $77M and $83M, up from a prior view of $58M to $64M. Free cash flow for the full-year is expected to be between $238M and $244M, with the free cash flow margin between 25% and 26%.
