Monday.com Earnings: Stellar Start to 2024 on Pricing Upside and Strong Enterprise Momentum

We raised our fair value estimate for no-moat Monday.com to $220 per share from $200 following the release of strong first-quarter fiscal 2024 results, which surpassed our above-guidance revenue and profitability expectations. The robust results reflect promising demand for the nascent work management software niche and illustrate the value add of Monday’s offering. On reassessing the firm’s outlook, we now factor in higher revenue per customer growth on improved pricing, a shift upmarket, greater product attach, as well as more rapid scale-based operating leverage. Monday shares spiked a sharp 20% post the strong release but continue to screen as fairly valued on a risk adjusted basis relative to our updated valuation.