Shares of workflow solutions provider Monday.com Ltd. (NASDAQ:MNDY) are moving higher today after its second-quarter revenue rose 42% year-over-year to $175.7 million, outperforming estimates by $6.4 million. EPS at $0.41 too handily beat expectations by $0.24.
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During the quarter, the company introduced the Monday AI assistant while also unveiling expanded AI capabilities. Further, the number of customers with an ARR (Annual Recurring Revenue) of over $50,000 rose by 63% over the prior year. Monday is seeing robust customer demand even as momentum in Monday sales CRM remains strong.
Further, while the net dollar retention rate came in at more than 110%, in customers with over $50,000 in annual ARR, it stood at over 120%. Looking ahead, for the third quarter, the company expects revenue to hover between $181 million and $183 million. Operating income for the quarter is anticipated between $4 million and $6 million.
For the full-year 2023, revenue is expected between $713 million and $717 million, pointing to a 37% to 38% growth over the prior year. Additionally, operating income for the year is seen landing between $24 million and $28 million.
Overall, the Street has a $193.50 consensus price target on MNDY alongside a Strong Buy consensus rating. This points to a hefty 24.2% potential upside in the stock on top of a 30.5% price surge so far this year.
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