Monday.com projects $1.2 billion in revenue for 2025 as AI strategy takes shape
Monday.com projects $1.2 billion in revenue for 2025 as AI strategy takes shape
The Israeli software company expects 23.5% growth and is introducing AI-based pricing to boost profitability.
Israeli software company Monday.com has set ambitious targets for 2025, projecting revenue of $1.2 billion—a 23.5% increase from the $972 million it recorded in 2024. While the company continues to invest heavily in growth, its path to profitability remains cautious, with expected operating profit before accounting items ranging between $134 million and $142 million, slightly above the $132 million reported last year.
Monday, which develops a multi-product platform, has been expanding rapidly. The company increased its workforce by 35% in 2024 to reach 2,500 employees and plans another 30% expansion this year. To accommodate this growth, Monday recently announced plans to lease 10 additional floors in the Azouri EcoTower in Tel Aviv, supplementing the 17 floors it already occupies in the TOU Tower.
A key driver of Monday’s growth strategy in 2025 will be its artificial intelligence (AI) initiatives. The company is pioneering a pay-per-use model for AI features within its platform, reminiscent of cloud service pricing. Monday observed a tenfold increase in AI feature usage by its customers over the past few months, reaching 10 million AI-powered actions in the last quarter of 2024. Based on this trend, the company will provide each customer with 500 free AI actions before transitioning to a usage-based pricing model.
In addition, Monday plans to launch its AI assistant, Monday Expert, in the second quarter of 2025. This tool is expected to enhance automation and decision-making within organizations, further integrating AI into enterprise workflows.
Despite its strong revenue outlook, Monday’s profitability remains a challenge. The company reduced its operating loss to $21 million in 2024, down from $38.5 million in 2023, but has yet to achieve consistent net profitability. However, with $1.4 billion in cash reserves generating significant financial income, Monday was able to post a net profit of $32.4 million in 2024. The company’s management believes that sustained growth and AI monetization will strengthen its financial position in the coming years.
Monday’s co-CEOs, Roy Mann and Eran Zinman, commented: “Our momentum is stronger than ever. You can see this reflected in the fact that we increased our workforce by 35% in 2024, bringing our headcount to 2,500 employees, and we plan to expand by another 30% this year. We factored in geopolitical tensions and issued a responsible forecast based on strong demand in the U.S. and stabilizing conditions in Europe. Our customer retention rates are at an all-time high, and we are seeing strong adoption of our products among large organizations.”
Following the announcement of its 2025 forecast, Monday's stock surged over 26%, bringing its market capitalization to $16.3 billion—more than double its valuation at the time of its IPO in 2021. This reaction suggests that investors are confident in the company’s ability to sustain its growth trajectory and capitalize on its AI strategy in the year ahead.
At year-end, Monday reported revenue of $972 million, reflecting 33% growth compared to the previous year and about 10% above Wall Street expectations. On the bottom line, it reported a net profit of 62 cents per share, a significant improvement from a loss of 4 cents per share in 2023. The company’s operations generated $311 million in cash flow, marking a 45% increase from the $215 million in operating cash flow recorded in the prior year.
The company’s optimistic revenue forecast does not yet include potential revenue from two major product announcements that could significantly impact its future.
The first is the launch of a fourth product within Monday’s platform, designed to manage internal organizational service systems, such as IT support, human resources, and legal requests. Unlike Monday’s traditional bottom-up marketing approach—where adoption starts with employees and spreads within organizations—this new product is sold directly to management. This shift could create new opportunities for expanding Monday’s presence within enterprises. Currently, the product is primarily being sold to existing customers, replacing offerings from long-standing competitors, thanks to its flexibility and competitive pricing.
However, what truly caught analysts’ attention was Monday’s AI vision. The company is among the first to introduce a pricing model for AI-powered features, marking a significant shift in how businesses monetize AI capabilities. Monday is pioneering a pay-as-you-go model for AI functionality, similar to cloud service pricing, where usage is measured in actions and credits.
“The market still doesn’t have a standard for AI pricing, and no one knows exactly what works,” explained Mann and Zinman. “We saw a sharp increase in usage and wanted to separate AI functionality from our standard pricing model.”
Additionally, in the second quarter of 2025, Monday plans to launch its AI-powered assistant, Monday Expert, further expanding its AI capabilities.
