Why Monday.com Stock Soared Higher Today
Shares of work management software company Monday.com (NASDAQ: MNDY) soared higher on Wednesday after the Israeli company reported financial results for the first quarter of 2024. As of 9:45 a.m. ET, Monday.com stock was up 22%.
In Q1, Monday.com reported revenue of $217 million, up an impressive 34% year over year and ahead of the high end of management's revenue guidance of $211 million. And its Q1 outperformance motivated management to increase its full-year guidance. Previously, it had expected full-year revenue of $932 million at most. Now, it expects full-year revenue of $942 million at least.
Monday.com raised its prices for existing customers for the first time during Q1, helping drive top-line growth. Management always expected the price increase to push revenue higher. However, its customer retention rates have been higher than expected. In other words, customers aren't pushing back against the higher prices and are staying on the platform. That's a really encouraging development for investors.
Source Fool.com
