Monday.com shares gained more than 7% in pre-market trading on Monday after the company reported a big jump in revenue and record operating margins.
The cloud-based software supplier said third-quarter revenue of $189.2 million was up 38% year over year with the number of customers with more than $50,000 annual recurring revenue growing 57%.
The firm’s GAAP operating loss was $2.5 million compared to a loss of $28.2 million a year ago while the GAAP operating margin was negative 1% compared to negative 21%.
On a non-GAAP basis, operating margin was 13% compared to negative 2% in the third quarter of 2022.
“We are very pleased with our performance in Q3, with strong top-line growth and impressive margin expansion and cash generation,” said Eliran Glazer, monday.com CFO.
“As a result, we are increasingly confident in our ability to reach our targets in both the short and long term, and to continue driving efficient growth at scale.”
For the fourth quarter, the firm forecast total revenue of $196 million to $198 million, representing year-over-year growth of 31% to 32% and non-GAAP operating income of $7 million to $9 million and operating margin of 4% to 5%.
Shares rose 7.4% to $140.12 in pre-market trading.