monday.com has reported its financial results for the first quarter of fiscal 2025, recording revenue of $282.3 million, marking a 30% increase compared to the same period in the previous year.
The company continued its trend of growth after its initial public offering, achieving record results in both GAAP and non-GAAP operating income, as well as its highest-ever adjusted free cash flow for a single quarter. The adjusted free cash flow for the period reached $109.5 million, compared to $89.9 million in the first quarter of 2024. GAAP operating income rose to $9.8 million from a loss of $5.0 million in the prior year's first quarter, and non-GAAP operating income increased to $40.8 million from $21.5 million in the year-ago quarter.
The company's net cash provided by operating activities was $112.0 million, up from $92.0 million in the same period last year. GAAP net income for the quarter stood at $27.4 million, equivalent to GAAP basic and diluted net income per share of $0.54 and $0.52, respectively. Non-GAAP basic and diluted net income per share was $1.14 and $1.10, an increase from $0.64 and $0.61, respectively, from the first quarter of 2024.
monday.com also reported growth in its customer base, especially among larger clients. The number of paid customers with more than $100,000 in annual recurring revenue (ARR) reached 1,328, a 46% increase from 911 at the end of March 2024. Customers with more than $50,000 in ARR rose 38% to 3,444, up from 2,491. The number of paid customers with more than 10 users grew by 9% to 60,566, up from 55,515 in the same period last year.
Retention rates also reflected stability and expansion across key customer groups. The overall net dollar retention rate stood at 112%, while customers with more than 10 users recorded a retention rate of 115%. Those with more than $50,000 in ARR had a rate of 116%, and those with over $100,000 in ARR reported 117%.
In a joint statement, monday.com co-founders and co-CEOs, Roy Mann and Eran Zinman, said: "We are thrilled to report an outstanding start to 2025, highlighted by strong revenue growth in the first quarter, record operating profit, and our highest-ever adjusted free cash flow for a single quarter. These results are a testament to the strength of our multi-product platform, the dedication of our teams, and our relentless focus on operational excellence."
Eliran Glazer, Chief Financial Officer at monday.com, commented on the performance and outlook: "Our strong financial performance and disciplined execution position us well to navigate uncertainties ahead. As we continue to invest in innovation, including the launch of new enterprise work management capabilities and AI-powered features, we are confident in our ability to execute our strategy and capitalise on the significant growth opportunities before us."
The company introduced new enterprise capabilities to its monday work management platform during the quarter. These included features aimed at enhancing leadership visibility, standardisation and alignment, and resource optimisation. Advanced artificial intelligence capabilities also continued to be integrated across the product suite, which the company said has seen adoption from customers of all sizes.
Management announced the appointment of Casey George as Chief Revenue Officer during the quarter. The company also reported a balance sheet with total assets of $1.85 billion at the end of March 2025, up from $1.69 billion on 31 December 2024. Cash and cash equivalents increased to $1.53 billion from $1.41 billion at the end of last year.
Looking ahead to the second quarter of fiscal 2025, monday.com expects total revenue between $292 million and $294 million, corresponding to year-over-year growth of 24% to 25%. Non-GAAP operating income is projected to be in the range of $32 million to $34 million, with an operating margin between 11% and 12%.
For the full year 2025, the company's guidance indicates total revenue in the range of $1,220 million to $1,226 million, representing annual growth of 25% to 26%. Non-GAAP operating income is expected to fall between $144 million and $150 million, with a non-GAAP operating margin of approximately 12%. Adjusted free cash flow is anticipated to be between $310 million and $316 million, equating to an adjusted free cash flow margin of 25% to 26%.
The company continues to provide non-GAAP financial measures, which it believes offer useful insight into current trends and operational performance.
