Welcome to Wall Street—where one quarter, you crush expectations and the stock drops 20%, and the next, you beat expectations again and the stock jumps 30%. That's exactly what's happening to monday.com 0.8%  , which reported Q4 2024 revenue of $268M and EPS of $1.08, beating estimates of $261.3M in revenue and $0.79 EPS. For 2025, Monday forecasts $1.214B in revenue (midpoint), slightly above Wall Street's $1.21B estimate.

While Monday’s earnings and guidance were strong, the company expects growth to decelerate from 32% in 2024 to 24%-26% in 2025. That's natural as companies scale—Monday grew 40% in 2023, 70% in 2022, and 90% in 2021. Even with the slowdown, the company just crossed $1 billion in annual recurring revenue (ARR), a major milestone.

Thanks to its 30% stock surge, Monday is now the fourth-largest Israeli company on Wall Street with a $16.75 billion market cap, surpassing Elbit and Mobileye. Only CyberArk, Teva, and Check Point remain ahead.

How Monday Keeps Customers Hooked

Monday has built a product that helps businesses manage operations and customer relationships more effectively. A proof? Net Dollar Retention (NDR) of 112%, and 116% among large customers ($100K+ ARR). In other words, Monday isn’t just keeping customers—it’s upselling them. This customer expansion is a key growth driver, according to Co-CEO Roy Mann.

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Another driver? AI. Monday is investing heavily in AI capabilities while actively evaluating acquisitions, hoping to complete one or two deals this year. We spoke with Mann and CFO Eliran Glazer about long-term strategy, employee retention, and why Monday is a product company first.

Strong earnings, stock soaring—how do employees feel?

Mann: "Honestly, I haven't even looked at the stock price yet. We manage the company for the long term. Long-term investors buy when the stock dips and celebrate when it rises. That’s how our employees feel too."

Glazer: "I assume some employees are happy, but as Roy said, we focus on long-term execution. We always emphasize that our success depends on ourselves, not market fluctuations."

Your 2025 guidance suggests growth will slow to 24%-26%, down from 32% in 2024. Why?

Glazer: "Once you reach a certain scale, sustaining 30%+ growth gets harder. Analysts understand this—it’s already priced into their models. Also, FX fluctuations play a role; in absolute dollar terms, growth could be higher."

What’s the biggest risk to your outlook?

Glazer: "The world remains unpredictable. Wars are happening across multiple regions, creating uncertainty for some of our customers. The new U.S. administration adds another layer of uncertainty—Trump’s early moves already indicate change, but it’s unclear how policies will evolve. Currency volatility is another factor; we estimate a 1%-2% FX impact."

How does Monday’s AI compare to competitors?

Mann: "We offer much more than basic AI capabilities. Our AI isn’t just an add-on—it’s fully embedded within our platform. Asking AI to do something is one thing. Connecting it to all internal systems and data sources is another—that's where we shine. Our AI features can auto-generate projects, analyze emails, train sales teams, and predict success—all because they’re deeply integrated into our platform. Plus, they’re extremely easy to use. Many companies struggle to translate AI into actionable processes. That’s where we provide real value."

Are these AI features free?

Mann: "To ensure AI access for all users, we introduced a flexible pricing model for AI Blocks. Each plan includes 500 free AI credits per month so teams can experiment. From there, they can upgrade—from 2,500 credits (starter plan) to 250,000 credits (enterprise-level)."

Are Monday’s AI tools better than competitors’?

Mann: "Yes, mainly because they seamlessly integrate into companies' existing workflows."

Are you using AI internally to cut costs?

Mann: "We leverage AI heavily in our customer support. We’re hiring fewer people for that function while simultaneously improving response times. We’re integrating AI across the organization—not to reduce headcount, but to make us faster and more efficient."

You have $1.4B in cash and generate $300M annually. Are you planning acquisitions?

Glazer: "We’re actively identifying potential acquisition targets in key areas. We’re now in the diligence phase, narrowing down our options. We hope to complete one or two acquisitions this year. These won’t be massive deals."

Tech industry turnover is high (2-3 years on average). Yet Monday employees stay longer. Why?

Glazer: "Monday has a positive culture. We aim to provide the best experience for our employees. This is our 15th straight quarter delivering on promises to both investors and employees—they see that and appreciate it. We recognize their contributions, which fosters loyalty."

Your biggest expense is sales & marketing—2.5x higher than R&D. Is Monday a product company or an R&D company?

Mann: "We’re 100% a product company. I like to think about it this way: If a company were distilled into a single person, who would that person be? For Apple, it would be a designer. For us, it would be a product leader. Everything at Monday revolves around the product—whether it’s marketing, research, or sales. If you win customers’ hearts through your product, they won’t leave you."

What are your main growth engines?

Mann: "The first is expanding within our existing customer base—we invest heavily in this. We’re also expanding our product lines, including CRM, Service, and Work Management. The second major driver is AI. Every organization today is trying to figure out how to incorporate AI. We’re embedding it directly into our platform, and customers trust us, so they’re adopting it readily."