Monday.com Ltd. (NASDAQ:MNDY) delivered second-quarter results that outpaced analyst forecasts, yet its stock tumbled more than 18% following the announcement.
The work management software provider reported adjusted earnings of $1.09 per share, well above the consensus estimate of $0.86. Revenue reached $299 million, marking a 27% year-over-year increase and surpassing the expected $293.58 million.
The company maintained a strong net dollar retention rate of 111%, rising to 115% for clients with more than 10 users.
“Q2 represented another robust quarter for monday.com, fueled by sustained revenue growth and rising demand for our diverse product lineup, especially among enterprise customers,” said co-founders and co-CEOs Roy Mann and Eran Zinman.
Monday.com also recorded its highest-ever count of customers with annual recurring revenue (ARR) exceeding $100,000, reaching 1,472 — a 46% jump from the prior year. Additionally, its CRM product recently crossed the $100 million ARR milestone, just three years after its launch.
Looking ahead, the company projects Q3 revenue between $311 million and $313 million, reflecting 24% to 25% growth year-over-year. This outlook aligns closely with analysts’ consensus of $312.9 million. For the full fiscal year 2025, revenue is forecasted to range from $1.224 billion to $1.229 billion, consistent with market expectations.
Non-GAAP operating income totaled $45.1 million, translating to a 15% operating margin, slightly down from $38.4 million and a 16% margin in the same quarter last year, indicating some margin compression amid revenue growth.
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