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Monday.com (MNDY)
NASDAQ:MNDY
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Monday.com
(NASDAQ:MNDY)
Rating:68Neutral
Price Target:
$192.00
▲(9.15% Upside)
Positive Factors
Enterprise Growth
Monday CRM continues to grow significantly, reaching $100 million in annual recurring revenue and showing strong enterprise momentum with record-high customer net additions.
Stock Rating Upgrade
The stock rating has been upgraded to 'Overweight', indicating increased confidence in its performance.
Negative Factors
AI Search Headwinds
AI Overviews in search results are creating mounting headwinds for Monday.com.
SEO Traffic Decline
SEO-driven website visits to Monday.com sank by an average of 23.5% year-over-year in the second quarter, with declines accelerating to -25.3% in July.
Monday.com (MNDY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$8.93B
Dividend YieldN/A
Average Volume (3M)1.37M
Price to Earnings (P/E)237.3
Beta (1Y)2.14
Revenue Growth30.24%
EPS Growth-6.69%
CountryUS
Employees2,508
SectorTechnology
Sector Strength85
IndustrySoftware - Application
Share Statistics
EPS (TTM)1.09
Shares Outstanding50,773,340
10 Day Avg. Volume1,987,726
30 Day Avg. Volume1,370,630
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)N/A
P/FCF RatioN/A
Enterprise Value/Market Cap1.71
Enterprise Value/Revenue13.84
Enterprise Value/Gross Profit15.48
Enterprise Value/Ebitda-2.33K
Forecast
1Y Price Target
$270.26Price Target Upside53.64% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering21
Monday.com Business Overview & Revenue Model
Company DescriptionMonday.com is a work operating system (Work OS) that empowers teams to run projects and workflows with confidence. Based in Israel, the company provides cloud-based software that allows organizations to create their own applications and work management software. Monday.com serves a wide array of sectors including technology, education, manufacturing, and marketing, with core products focusing on project management, team collaboration, and productivity enhancement.
How the Company Makes MoneyMonday.com generates revenue primarily through a subscription-based model. Customers pay for access to its platform on a per-user, per-month basis, with pricing tiers that vary based on the level of functionality and number of users. The company offers different plans such as Basic, Standard, Pro, and Enterprise, each with escalating features and support options. Additionally, Monday.com benefits from partnerships with other software providers, integrations with third-party applications, and marketplace expansions that enhance the platform's functionality and user appeal. This diversified approach to revenue generation is complemented by a focus on increasing customer lifetime value through upselling and expanding usage within existing accounts.
Monday.com Key Performance Indicators (KPIs)
Any
Customers Over $50K
Indicates the number of large-scale clients generating significant revenue, highlighting the company’s ability to attract and retain high-value customers, which can drive stable and substantial growth.
Indicates the number of large-scale clients generating significant revenue, highlighting the company’s ability to attract and retain high-value customers, which can drive stable and substantial growth.
Data provided by:
Main Street Data
Main Street DataMonday.com Earnings Call Summary
Earnings Call Date:Aug 11, 2025
(Q2-2025)
| % Change Since: |
Next Earnings Date:Nov 17, 2025
Earnings Call Sentiment Positive
The earnings call reflected strong performance with robust revenue growth, improved operating margins, and significant advancements in AI and enterprise segments. However, challenges were noted with the Google algorithm changes affecting the down market and a slight deceleration in NDR.Q2-2025 Updates
Positive Updates
Robust Revenue Growth
monday.com reported a revenue growth of 27% for Q2 FY2025, with total revenue reaching $299 million, reflecting strong demand for their platform.
Improved Operating Margin
The company achieved a non-GAAP operating margin of 15% in Q2, indicating improved efficiency and disciplined execution.
AI Capabilities Expansion
Q2 saw significant strides in AI, with 46 million AI-driven actions performed by users since launch. New AI-powered capabilities such as monday magic, monday vibe, and monday sidekick were introduced.
Record Enterprise Growth
The enterprise segment was the fastest growing, with a record number of net new customer additions paying over $100,000 annually.
CRM Milestone
monday CRM achieved $100 million in annual recurring revenue, marking significant growth and customer trust in the platform.
Negative Updates
Challenges with Google Algorithm Changes
The company faced some softness in the down market due to changes in the Google algorithm, impacting customer acquisition costs.
Deceleration in NDR
NDR decreased from 112% to 111%, primarily due to the lapping of the 2024 price increase.
Company Guidance
During the second quarter fiscal year 2025 earnings call, monday.com provided guidance reflecting strong performance and future expectations. The company reported robust revenue growth of 27% year-over-year, with total revenue reaching $299 million. The non-GAAP operating margin was reported at 15% for Q2. For the third quarter, monday.com anticipates revenue between $311 million and $313 million, representing a 24% to 25% increase year-over-year. The company projects full-year 2025 revenue to be in the range of $1.224 billion to $1.229 billion, marking a 26% growth year-over-year. Non-GAAP operating income for the full year is expected to be between $154 million and $158 million, with an operating margin of approximately 13%. Additionally, the adjusted free cash flow for the full year is predicted to be between $320 million and $326 million, with a margin of 26% to 27%. The company is confident in its ability to maintain growth and operational efficiency, despite some impacts from changes in Google's search algorithm affecting lower-tier customer acquisitions.Monday.com Financial Statement Overview
Summary
Monday.com showcases strong financial health with significant revenue growth and improved profitability metrics. The balance sheet reflects low leverage and strong equity, while cash flow generation is robust, supporting operational and strategic initiatives. Despite operating losses in the past, the company's trajectory toward profitability and efficient cash management positions it well for future growth in the software application industry.Income Statement
Monday.com demonstrates strong revenue growth with a TTM revenue of $1.04 billion, a significant increase from $971.99 million in 2024. The gross profit margin remains robust at 89.52%, indicating efficient cost management. Although operating at a loss, the company has improved its net profit margin to 5.08%, showcasing its trajectory towards profitability. Both EBITDA and EBIT margins have improved, reflecting better operational performance.85
Very Positive
Balance Sheet
The balance sheet of Monday.com is solid, with a strong equity ratio of 59.66%, indicating financial stability. The debt-to-equity ratio is low at 0.11, suggesting minimal leverage and reduced financial risk. Return on equity is positive at 4.79%, reflecting the company's ability to generate returns on investments. The equity growth and asset management are commendable, although the company still carries some liabilities.78
Positive
Cash Flow
Cash flow analysis shows impressive free cash flow growth, with TTM free cash flow reaching $312.85 million, up from $297.85 million in 2024. The operating cash flow to net income ratio of 6.26 indicates strong cash generation relative to earnings, which is favorable for sustaining operations and future growth. The company efficiently converts net income to free cash flow, highlighting effective cash management.88
Very Positive
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 1.10B | 972.00M | 729.70M | 519.03M | 308.15M | 161.12M |
| Gross Profit | 983.79M | 868.30M | 649.05M | 452.50M | 269.14M | 138.63M |
| EBITDA | -6.53M | 58.00M | 12.79M | -120.10M | -123.93M | -147.11M |
| Net Income | 39.98M | 32.37M | -1.88M | -136.87M | -129.29M | -152.20M |
Balance Sheet | ||||||
| Total Assets | 1.96B | 1.69B | 1.28B | 1.04B | 933.19M | 157.42M |
| Cash, Cash Equivalents and Short-Term Investments | 1.65B | 1.46B | 1.12B | 885.89M | 886.81M | 139.81M |
| Total Debt | 126.21M | 106.04M | 61.15M | 77.72M | 84.00K | 21.10M |
| Total Liabilities | 771.59M | 655.28M | 462.15M | 359.30M | 229.80M | 374.98M |
| Stockholders Equity | 1.19B | 1.03B | 813.51M | 679.74M | 703.39M | -217.56M |
Cash Flow | ||||||
| Free Cash Flow | 323.21M | 297.85M | 204.94M | 8.14M | 2.60M | -42.66M |
| Operating Cash Flow | 342.12M | 311.06M | 215.40M | 27.14M | 16.36M | -37.17M |
| Investing Cash Flow | -85.09M | -70.81M | -10.46M | -19.00M | -3.63M | -11.48M |
| Financing Cash Flow | 43.24M | 55.21M | 25.29M | -9.05M | 742.27M | 8.47M |
Monday.com Technical Analysis
Negative
175.91
Price Trends
259.71
Negative
267.56
Negative
266.96
Negative
Market Momentum
-27.63
Positive
24.72
Positive
62.02
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For MNDY, the sentiment is Negative. The current price of 175.91 is below the 20-day moving average (MA) of 207.54, below the 50-day MA of 259.71, and below the 200-day MA of 266.96, indicating a bearish trend. The MACD of -27.63 indicates Positive momentum. The RSI at 24.72 is Positive, neither overbought nor oversold. The STOCH value of 62.02 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for MNDY.
Monday.com Peers Comparison
Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
74 Outperform | $9.77B | 44.11 | 20.04% | ― | 13.74% | 10.99% | |
71 Outperform | $14.48B | 131.33 | 13.44% | ― | 39.51% | 68.53% | |
68 Neutral | $8.93B | 237.33 | 3.80% | ― | 30.24% | -6.69% | |
65 Neutral | $16.38B | 69.83 | 23.69% | 0.48% | 10.45% | -32.43% | |
63 Neutral | $16.93B | ― | -13.62% | ― | -13.74% | 48.10% | |
62 Neutral | $3.30B | ― | -83.36% | ― | 9.84% | 13.74% | |
61 Neutral | $35.62B | 8.22 | -10.94% | 1.88% | 8.86% | -10.36% |
* Technology Sector Average
Performance Comparison
MNDY
Monday.com
175.91
-80.26
-31.33%
PCTY
Paylocity
177.19
16.16
10.04%
U
Unity Software
40.34
23.88
145.08%
BSY
Bentley Systems
54.77
4.47
8.89%
ASAN
Asana
14.04
0.29
2.11%
DUOL
Duolingo
317.93
115.11
56.75%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.