TLDR
- Q2 revenue rose 27% to $299M, topping estimates.
- Adjusted EPS of $1.09 beat forecasts by 27%.
- Guidance for Q3 revenue is slightly below expectations.
- Shares dropped over 26% despite strong customer growth.
- Full-year 2025 revenue outlook raised slightly to $1.23B midpoint.
Monday.com (NASDAQ: MNDY) reported its second-quarter fiscal 2025 results on August 11, with the stock trading at $181.44, down 26.85% as of midday.
The project management software provider delivered revenue of $299 million, up 27% year over year, exceeding Wall Streetās forecast of $293.6 million. Adjusted earnings per share were $1.09, topping expectations of $0.86 and rising 16% from a year earlier. Despite the beat, the stock tumbled on cautious guidance for the next quarter.
Financial Highlights
The quarter saw a GAAP operating loss of $11.6 million, compared to an operating income of $1.8 million in Q2 2024. Non-GAAP operating income rose to $45.1 million from $38.4 million a year earlier, with margins slightly slipping from 16% to 15%. GAAP net income per share came in at $0.03, while non-GAAP diluted EPS increased to $1.09 from $0.94. Cash flow from operations reached $66.8 million, with adjusted free cash flow at $64.1 million.
Thoughts on Monday Earnings Report $MNDY:
š¢ Positive
ā¢Revenue $299M (+26.6% YoY, +5.9% QoQ) beat estimates by 2%
ā¢EPS $1.09 beat by 25.3%
ā¢$100M ARR milestone for Monday CRM, +20% YoY ACV growth
ā¢Record 1,472 $100K+ customers (+45.9% YoY, +144) and 3,702 $50K+ customersā¦ pic.twitter.com/hJ09UVAkcj— Sergey (@SergeyCYW) August 11, 2025
Customer Growth and AI Expansion
Monday.com added a record number of customers with over $100,000 in annual recurring revenue (ARR), bringing the total to 1,472, a 46% year-over-year increase. Customers with ARR above $50,000 increased to 3,702, a 36% rise. The companyās net dollar retention rate was 115% for customers with more than 10 users, and 117% for those with ARR above $100,000. The firm also reached $100 million ARR in its CRM product, just three years after launch. New AI features ā Monday Magic, Monday Vibe, and Monday Sidekick ā were introduced to enhance productivity and work execution.
Management Commentary
Co-founders and co-CEOs Roy Mann and Eran Zinman highlighted strong demand from enterprise clients and emphasized the role of AI innovations in driving customer value. CFO Eliran Glazer reiterated the companyās focus on operational efficiency, expanding go-to-market strategies, and executing its innovation roadmap.
Guidance and Analyst Views
For Q3, the company expects revenue between $311 million and $313 million, implying 24% to 25% year-over-year growth but slightly below consensus estimates of $312.94 million. Full-year revenue guidance was modestly raised to $1.224ā$1.229 billion from $1.220ā$1.226 billion. Non-GAAP operating income is projected at $154ā$158 million, with adjusted free cash flow of $320ā$326 million.
Analysts noted that while Monday.com delivered solid revenue and profit beats, the smaller-than-usual upside and conservative guidance weighed on investor sentiment. The stock fell sharply, reflecting market concerns over slowing growth momentum.
