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Key Takeaways
- Monday.com beat analysts’ expectations on the top and bottom lines in the second quarter.
- The company achieved its first quarter of GAAP operating profitability.
- It now expects full-year revenue growth of 31% to 32%, up from a prior estimate of 29% to 30%.
Shares of monday.com popped after the workplace software company topped analysts’ expectations with its second-quarter results and raised its full-year guidance.
The company’s latest projection calls for revenue growth of 31% to 32% in 2024, up from a prior estimate of 29% to 30%.
In the second quarter, revenue jumped 34% year-over-year to $236.1 million and earnings per share (EPS) swung to a profit of 27 cents from a loss of 15 cents. Both figures came in above the analyst consensus, per Visible Alpha. Monday.com stock was up nearly 12% in recent trading.
The company was “able to deliver exceptional efficiency in Q2, achieving our first quarter of GAAP operating profitability,” said Chief Financial Officer Eliran Glazer. “These results demonstrate not only our highly effective execution, but the strong demand we continue to see even through a challenging macroeconomic environment.”
Monday.com’s said its net dollar retention rate was 110%, while its net dollar retention rate for clients with annual recurring revenue above $100,000 was 114%. The company defines net dollar retention rate as the percentage of revenue it generated from existing customers compared to what it earned from those same customers a year earlier. A figure above 100% means the company is growing its revenue within its existing customer base.