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

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: ID:nBw9tTlWNa