Shares of monday.com (NASDAQ:MNDY) saw a more than 10% increase today following a successful third quarter that exceeded expectations and prompted a revised outlook. The company achieved a record non-GAAP operating margin and free cash flow during this period.

In the third quarter, monday.com's revenue grew by 38% to $189.2 million, surpassing the expected $182.5 million consensus. There was a significant increase in non-GAAP diluted net income per share, which rose to $0.64 from $0.05 last year, beating the $0.21 consensus.

Key to their success was the Net dollar retention rate, which stood over 110%. Notably, for customers with more than 10 users, this rate was even higher, over 115%. The number of paid customers with annual recurring revenue (ARR) exceeding $50,000 also grew by 57% from the previous year, reaching 2,077.

Looking to the future, monday.com projects its fourth-quarter revenue to be between $196 and $198 million, which is higher than the Street estimate of $195.16 million. For the full year 2023, the company anticipates revenues in the range of $723-725 million, again surpassing the Street estimate of $715.5 million.