Software company Monday.com beats Q2 revenue estimates
Overview
Monday.com Q2 revenue grows 27% yr/yr, beating analysts' expectations
Reports GAAP operating loss, but non-GAAP operating income improves
Co adds record number of customers with over $100k in ARR
Outlook
Company expects Q3 revenue between $311 mln and $313 mln
monday.com forecasts full-year revenue of $1,224 mln to $1,229 mln
Company anticipates Q3 non-GAAP operating income of $34 mln to $36 mln
monday.com projects full-year adjusted free cash flow of $320 mln to $326 mln
Result Drivers
AI INNOVATION - Co-founders attribute growth to AI capabilities enhancing product flexibility and addressing core challenges
ENTERPRISE DEMAND - Record number of new customers with over $100k in ARR, driven by enterprise demand
CRM GROWTH - CRM reaches $100 mln in ARR, reflecting strong product line expansion
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q2 Revenue | Beat | $299.01 mln | $293.50 mln (21 Analysts) |
Q2 Net Income | $1.57 mln | ||
Q2 Gross Profit | $267.84 mln | ||
Q2 Operating Income | -$11.55 mln | ||
Q2 Pretax Profit | $2.55 mln |
Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 22 "strong buy" or "buy", 2 "hold" and no "sell" or "strong sell"
The average consensus recommendation for the software peer group is "buy"
Wall Street's median 12-month price target for monday.com Ltd is $347.50, about 28.6% above its August 8 closing price of $248.04
The stock recently traded at 58 times the next 12-month earnings vs. a P/E of 75 three months ago
Press Release: