Shares of Monday.com (MNDY) are down 27% at the time of writing after the company released its second-quarter results and updated its outlook. The collaborative work management software provider reported revenue of $299 million, which was up 27% year-over-year, and non-GAAP EPS of $1.09, a 16% increase. Both figures came in ahead of Wall Street expectations.
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Interestingly, the firm’s Co-CEOs attributed the results to strong enterprise demand, as the company continued to attract larger customers. In fact, overall net dollar retention stood at 111% (similar to levels seen during the past several quarters, as per the image below) while enterprise customers that spent over $100,000 in ARR showed a higher retention rate of 117%.
However, according to Citi, led by analyst Steve Enders, the topline beat of 1.9% was smaller than last quarter’s 2.3% and the four-quarter average of 2.5%, which analysts viewed as underwhelming relative to expectations.
2025 Outlook
For 2025, monday.com now expects revenue between $1.224 billion and $1.229 billion, up slightly from its prior range and close to the consensus estimate of $1.22 billion. EBIT guidance was also increased to $154–$158 million from $144–$150 million, and FCF is now forecast at $320–$326 million versus $310–$316 million previously. For the third quarter, revenue is projected at $311–$313 million, in line with consensus at $312.94 million.
Citi also noted that management’s updated guidance raised 2025 targets for revenue, EBIT, and FCF, but by less than the Q2 beat implied. Nevertheless, they see these forecasts as “likely conservative,” thereby potentially setting up future positive surprises if growth trends hold.
Is MNDY Stock a Good Buy?
Turning to Wall Street, analysts have a Strong Buy consensus rating on MNDY stock based on 17 Buys, two Holds, and zero Sells assigned in the past three months, as indicated by the graphic below. Furthermore, the average MNDY price target of $344.61 per share implies 90% upside potential. However, it’s worth noting that estimates will likely change following today’s earnings report.
