monday.com (MNDY) shares jumped 24.45% after the work operating system company delivered upbeat second-quarter results. The company also issued strong third-quarter and full-year guidance.
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Revenue in the quarter was up 94% year-over-year to $70.6 million, beating consensus estimates of $62.11 million. The diluted loss per share narrowed to $0.26 from $0.39 a share reported in the same quarter last year, beating consensus estimates of a net loss of $1 a share.
According to co-CEO Roy Mann, Q2 results, the first as a public company, underscores strong execution and expanding adoption of the Work OS. (See monday.com stock charts on TipRanks)
“monday.com Work OS is the leader in the low-code no-code market, and our business is accelerating as we continue to expand platform usage into use cases such as operations, project management, CRM, finance, marketing, HR, and IT,” said co-CEO, Eran Zinman.
The net dollar retention rate for customers with more than 10 users was over 125% in the quarter as the number of paid enterprise customers with more than $50,000 in annual recurring revenue increased 226% year-over-year to 470.
For the third quarter, monday.com expects revenues to range between $74 million and $75 million, representing year-over-year growth of 74% to 76%. The company expects a non-GAAP operating loss of between $26 million and $25 million. For the full year, revenue is expected to range between $280 million and $282 million, representing a 74% to 75% year-over-year increase.
Yesterday, Jefferies analyst Brent Thill reiterated a Hold rating on the stock and raised the price target to $275 from $240, implying 9.84% downside potential to current levels. The analyst remains optimistic about fundamentals as there is no slowdown in the $88 billion market for no-code work management software.
Consensus among analysts is a Moderate Buy based on 8 Buys and 3 Holds. The average monday.com price target of $289.38 implies 5.12% downside potential to current levels.
MNDY scores a 6 out of 10 on TipRanks’ Smart Score rating system, suggesting that the stock is likely to perform in line with market averages.
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