By Sam Boughedda
Investing.com -- Shares of monday.com (NASDAQ:MNDY), a cloud-based platform and work management software, plunged more than 25% Wednesday after the company reported its fourth quarter earnings.
The company announced earnings per share of -26 cents on revenue of $95.5 million. Analysts polled by Investing.com anticipated EPS of -51 cents on revenue of $87.8 million. Revenue increased 91% year-over-year.
Furthermore, the net dollar retention rate for customers with more than 10 users was over 135%, while the total number of paid customers was 152,048, up 34% from 113,888 as of December 31, 2020. The number of paid customers with more than $50,000 in annual recurring revenue was 793, up 200% from 264 as of December 31, 2020.
"We had another great quarter at monday.com and finished fiscal year 2021 exceptionally strong. Compared to last year, we delivered 91% revenue growth and 200% enterprise customer growth, while generating record free cash flow in Q4,” said monday.com founder and co-CEO, Roy Mann.
The company sees total revenue of $100 million to $102 million in Q1, representing year-over-year growth of 70% to 73%, with a non-GAAP operating loss of $47 million to $45 million. For the full year 2022, the company expects total revenue between $470 million and $475 million, representing year-over-year growth of 53% to 54%, with a non-GAAP operating loss of $147 million to $142 million and a negative operating margin of 31% to 30%.
Despite the Q4 earnings and revenue beat, MNDY shares plunged, with investors potentially concerned about the company's growth slightly slowing. However, such a large fall can be considered excessive.