Israeli work operating system company monday.com (Nasdaq: MNDY) share price is down 24.33% on Nasdaq at $134.32, giving a market cap of $6.1 billion, after reporting its fourth quarter and full year 2021 financial results.
monday.com was until recently considered as one of the most successful Israeli IPOs on Wall Street last year. The company's shares were worth $155, at its IPO last June, and by November had nearly tripled in value to $445 but today the share price has now fallen below its IPO price. At its peak in November, monday.com had a market cap of $19.4 billion but now it has lost nearly 70% of its value.
monday.com has developed work operating systems that allow enterprises to create the tools and procedures that they require. The company held its IPO when investors had an appetite for fast-growth tech companies even if they were not profitable. But appetites change and with concerns about rising inflation and interest rates, investors now prefer veteran value companies in traditional industries. As a result, almost all the Israeli tech companies that held IPOs last year have slumped.
Investors lose patience but revenue grows
monday.com's fourth quarter results show continued revenue growth and non-GAAP earnings per share losses, lower than the analysts' estimates. Revenue in the fourth quarter of 2021 was $95.5 million, 90.5% higher than the corresponding quarter of 2020. Revenue growth in the preceding quarters was 94%-95%.
GAAP net loss narrowed to $32.6 million in the fourth quarter from $62.8 million in the corresponding quarter of 2020. Non-GAAP net loss in the fourth quarter was $11.7 million or $0.26 per share, while the analysts had expected a bigger loss.
2021 revenue was $308 million, up 91.3% from 2020. GAAP net loss in 2021 was $129 million, narrowing from $152 million in 2020 and non-GAAP net loss in 2021 was $58.8 million, narrowing 33% from 2020.
monday.com co-CEO Roy Mann is biggest loser 'on paper'
monday.com cofounder and co-CEO Roy Mann said, "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."
The biggest loser 'on paper' from the plunge in monday.com's share price is Mann. He holds a 13.1% stake in the company, which was worth $2.6 billion at its peak but was worth $826 million in premarketing trading today. Cofounder and co-CEO Eran Zinman has a 5.6% stake, which has fallen from more than $1 billion to $323 million.
Published by Globes, Israel business news - en.globes.co.il - on February 23, 2022.
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