monday.com: Management Raises Guidance On Upmarket Momentum (Rating Upgrade)

May 16, 2024 8:00 AM ETmonday.com Ltd. (MNDY) Stock1 Comment

Summary

  • monday.com has outperformed the S&P 500 and Nasdaq 100 YTD and reported strong Q1 FY24 earnings, with revenue and earnings beating estimates.
  • The company is driving innovation and scaling upmarket with its monday sales CRM and monday Dev, which should boost growth through cross-selling and upselling opportunities in the coming quarters.
  • While there are concerns about customer churn and competition in the market, Monday's overall fundamentals are strong, and the management has raised revenue and earnings guidance.
  • Assessing both the "good" and the "bad", Monday's growth story is poised to continue with its success in upmarket and expanding profitability, making MNDY stock a "buy".
Three women and two men in a business meeting.

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Introduction & Investment Thesis

monday.com (NASDAQ:MNDY) is a leading provider of cloud solutions for work management and enterprise collaboration that has outperformed the S&P 500 and Nasdaq 100 YTD. I last covered the stock on February 13, when I

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Amrita runs a boutique family office fund in beautiful Vancouver, where she leads the investment strategy for the family fund. The fund's objective is to invest capital in sustainable, growth-driven companies that maximize shareholder equity by meeting their growth-oriented goals. In addition, she also started her own award-winning newsletter, The Pragmatic Optimist which focuses on portfolio strategy, valuation, and macroeconomics in concert with her husband Uttam Dey who is also a contributor on Seeking Alpha. Prior to cofounding her fund, Amrita worked for 5 years in high-growth supply-chain start-ups in downtown San Francisco, where she led strategy. During her time in the Bay Area, she also worked with venture capital firms and start-ups, where her efforts led her to grow the user acquisition business. During this time, she was introduced to investment portfolios and was able to maximize returns for clients during the pandemic. The cornerstone of Amritas work rests on democratizing financial literacy for everyone and breaking down financial jargon and complex macroeconomic concepts into formats that are easily digestible but more empowering than the typical investment thesis. Her newsletter has been featured as the Top Newsletter in Finance on popular newsletter platforms and she aims to bring her ideas to Seeking Alpha as well.

Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, but may initiate a beneficial Long position through a purchase of the stock, or the purchase of call options or similar derivatives in MNDY over the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

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