Monday.com Rallies Following Earnings - Analyst Encouraged by 'Solid Execution' QA

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Monday.com Rallies Following Earnings - Analyst Encouraged by 'Solid Execution' QA
Credit: © Reuters.

Monday .com (MNDY (NASDAQ: MNDY )) shares jumped Monday after the company's second-quarter earnings topped earnings and revenue estimates.

The cloud-based work management software company reported a second-quarter loss per share of $0.33, $0.42 better than the analyst estimate of a loss per share of $0.75. Furthermore, revenue for the quarter came in at $123.7 million versus the consensus estimate of $118.23 million. Year-over-year, Monday.com revenue grew 75%.

The company revealed the number of customers with more than $50k ARR grew 147% year over year, while the number of paying accounts from new Monday.com Work OS products surpassed 1,000 during the quarter.

“We continue to deliver strong top line growth with revenue growing 75% in the second quarter,” said Monday.com founder and co-CEO, Roy Mann. “Our move upmarket continues at an astonishing rate, growing our enterprise customer base to more than 1,000 customers this quarter, while maintaining our best in industry net dollar retention rates.”

Monday.com sees full-year 2022 revenue between $498 million and $502 million versus the consensus of $491.3 million.

Following the report, JPMorgan (NYSE: JPM ) maintained a Neutral rating on the stock, increasing the price target to $160 from $140 per share.

Analyst Pinjalim Bora said in a note that "Monday.com reported a solid Q2 with a strong top-line beat and FY guidance raise as customers increasingly adopt the company’s product suite, although it is seeing some softness in demand in Europe."

"While we are encouraged by the solid execution and we remain positive on the opportunity for Monday.com as it benefits from durable tailwinds in the work management market, we are mindful of the operating losses and continue to monitor any incremental deterioration in the macro environment," wrote Bora.

By Sam Boughedda

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