Monday.com Shares Plunge Despite Strong Q2 Beat

Monday.com (NASDAQ:MNDY) reported second-quarter results that topped Wall Street expectations, but shares fell more than 29% on Monday.

The work management software firm posted adjusted earnings of $1.09 per share, well above the $0.86 consensus estimate. Revenue rose 27% year-over-year to $299 million, exceeding forecasts of $293.58 million.

Net dollar retention stood at 111%, and reached 115% for customers with over 10 users. Co-founders and co-CEOs Roy Mann and Eran Zinman highlighted strong demand from enterprise clients and growing adoption of the company’s product suite.

The number of customers generating over $100,000 in annual recurring revenue climbed 46% year-over-year to 1,472, a record high. The company’s CRM product also surpassed $100 million in ARR just three years after its launch.

For Q3, Monday.com guided revenue of $311 million to $313 million, in line with estimates. Full-year revenue is expected between $1.224 billion and $1.229 billion, also matching analyst expectations.