Monday.com increases profitability while participating in war effort
Monday.com increases profitability while participating in war effort
The enterprise software company's platform serves as the basis for managing the activities of thousands of volunteers and hundreds of employees; Monday recorded a net profit of $7.5 million, as their stock continues to soar.
Israeli unicorn Monday.com reported rapid growth in its third quarter as well as increased profitability, a trend expected to continue in the last quarter of the year. Like other Israeli tech companies, Monday does not expect to feel a business impact from the ongoing war, although 100 employees have been drafted to the army, roughly 7% of Monday’s global workforce.
Monday, an enterprise software company, concluded the third quarter with revenues of $189.2 million, reflecting an annual growth rate of 38%. In the current quarter, it anticipates revenues of $196-198 million, indicating a slight slowdown in the growth rate to around 30%. However, the company is expected to achieve a growth rate of 40% annually, with it predicting annual revenues between $723-725 million this year. If it maintains the current growth rate, it will become a billion-dollar company in 2024. The projected figures are higher than both quarterly and annual expectations. The company's stock has jumped by about 10%, bringing Monday’s valuation back to $8 billion.
In addition to growth, the company is continuing to improve its operational efficiency, and in the third quarter, its operating loss fell to $2.5 million compared to a loss of $28 million in the same quarter last year. The company has reported a net profit of $7.5 million in the third quarter, compared to a loss of $23 million in the same quarter in 2022. Cash flow from operations amounted to $66 million, more than triple the amount from the corresponding period last year.
Monday notes that despite the challenges brought on by the war, it is continuing to hire employees as planned and currently has 100 open positions in Israel. While it has some exposure to the Israeli market, the company notes that Israel accounts for only about 5% of its revenue. "We remain confident in our ability to achieve all of the business and financial goals we have set," said Roy Mann and Eran Zinman, Monday Co-Founders and Co-CEOS. "Our data servers are distributed globally, so operations will continue without disruption. We closely monitor the situation and will make necessary adjustments to our plans as needed," they added.
Monday has become one of the most prominent companies involved in civilian-led projects following Hamas’ terror attack on October 7. Its project management platform serves as the basis for coordinating volunteer activities, locating homes for displaced people, and other projects such as preparing wreaths for the funerals of victims of the massacre. The company has been involved in 360 different civilian-led projects, which include thousands of volunteers to streamline and simplify processes. At its peak, 200 of Monday’s Israeli employees were working on civilian-led projects, with 30 of them still involved.
