Shares of monday.com (MNDY (NASDAQ:MNDY)) surged nearly 8% in pre-open trading Monday following a beat-and-raise third quarter. The company hit record quarterly non-GAAP operating margin and free cash flow.
Third-quarter revenue rose 38% to $189.2 million, topping the consensus of $182.5 million. Non-GAAP diluted net income per share was $0.64, up sharply from $0.05 last year and beating the consensus of $0.21.
“Q3 marked another strong quarter for monday.com, with continued momentum from our multi-product strategy and robust customer demand,” said monday.com co-founders and co-CEOs, Roy Mann and Eran Zinman. “We are particularly pleased with our progress on mondayDB, our new infrastructure underpinning the WorkOS platform. The rollout of mondayDB remains ahead of schedule, and our customers are already seeing significant speed improvements for their largest and most complex use cases.”
The company reported that Net dollar retention rate was over 110% and Net dollar retention rate for customers with more than 10 users was over 115%. Meanwhile, the number of paid customers with more than $50,000 in ARR grew 57% from last year to 2,077.
Looking ahead, monday.com sees fourth quarter revenue of $196-$198 million, above the consensus of $195.16 million.
For FY2023, the company sees revenue of $723-725 million, versus the consensus of $715.5 million.