monday.com (MNDY) just dropped its second-quarter 2024 earnings report, and it’s packed with some pretty impressive news. The work management platform, known for making teamwork smoother and more efficient, announced that its Q2 2024 revenue hit $236.1 million. This marks a 34% increase year-over-year, showing that the company is not just holding steady but really stepping on the gas. Even more notable, monday.com hit GAAP operating profitability for the first time, which is a big deal for any tech company.
monday.com Hits Major Revenue Milestone
So, what’s driving this surge in revenue? According to the co-founders and co-CEOs, Roy Mann and Eran Zinman, it’s all about innovation and strategic growth. In a note, they emphasized, “Q2 marks three years since our debut on the Nasdaq, and we’re more excited than ever about the opportunities we see ahead.” These guys aren’t just sitting around celebrating past successes; they’re doubling down on efforts to scale up as their customers grow.
This quarter, monday.com didn’t just inch forward; it made a leap, especially with its largest deal ever—a jaw-dropping 80,000-seat agreement with a multinational healthcare company. Securing such a large agreement shows the platform’s growing appeal to large organizations. This deal also shows monday.com’s ability to scale and support the needs of major enterprises, signaling that the platform is not just for smaller teams but is also being adopted by large-scale organizations.
MNDY Leadership Focuses on Strategic Growth
This quarter’s success didn’t happen overnight. It’s the result of a focused effort to move upmarket, targeting larger enterprises with bigger needs and deeper pockets. CFO Eliran Glazer pointed out, “monday.com delivered a strong second quarter, and we’re very encouraged by the progress we continue to make against both our short- and long-term financial goals.” Glazer’s optimism is backed by numbers, and it’s clear that the company’s strategy is paying off.
What’s noteworthy is the turnaround in profitability. monday.com managed to shift from a GAAP operating loss of $12.2 million in Q2 2023 to a GAAP operating income of $1.8 million this quarter. This improvement is a clear indication that the company is making strides in managing its operations more effectively.
MNDY Provides an Upbeat Outlook
Looking forward, monday.com is projecting Q3 2024 revenue between $243 million and $247 million, with expectations of up to $961 million in revenue for the full year. These projections suggest that the company is optimistic about its growth trajectory.
The company also anticipates non-GAAP operating income of up to $105 million for the full year, aiming to maintain the profitability trend seen this quarter. Achieving a non-GAAP operating margin of 16% this quarter, up from 9% last year, monday.com is focused on sustaining this momentum.
Is MNDY a Good Stock to Buy?
Analysts remain bullish about MNDY stock, with a Strong Buy consensus rating based on 13 Buys and three Holds. Over the past year, MNDY has increased by more than 40%, and the average MNDY price target of $262.67 implies an upside potential of 7.5% from current levels.
