Shares of Monday.com (MNDY 30.07%) surged higher on Monday morning, lifted by a strong earnings report. As of 10:40 a.m ET, the stock had gained 35.2% from last Friday's closing price.

Monday.com's Q4 by the numbers

Monday.com's fourth-quarter revenues rose 32% year over year to $268 million. On the bottom line, adjusted earnings per diluted share jumped from $0.65 to $1.08. Adjusted operating margins widened from 10% to 15%. The Street's consensus estimates had pointed to earnings near $0.79 per share on revenues of roughly $261 million.

The company's cloud-based platform for project and workflow management added approximately 20,000 customers in the fourth quarter, boosting the customer count to 245,000.

Stellar results, expensive stock

Monday.com's good news didn't end there. Net dollar retention came in at 112%, which means that the average contract renewal was 12% more lucrative than the expiring agreement. Free cash flows landed at $72.7 million, more than 31% above the year-ago reading.

The company is adding artificial intelligence (AI) functions to many parts of its cloud-based service. For example, the AI-based customer service solution known as "monday service" is off to a great start, with record-breaking cross-selling activity to established Monday.com customers.

The stock is now within shouting distance of its all-time highs, trading about 11% below the record prices that were established just before the inflation crisis in 2021. It's also quite expensive, despite Monday.com's surging financials.

This investment could be for you, but only if you don't mind a high-octane growth stock trading at 97 times trailing earnings and 17 times sales.