Cloud-based work management software company Monday.com (NASDAQ: MNDY) reported better-than-expected results for the second quarter ended June 30, 2022. The stock jumped 17.8% in the normal trading hours as both revenue and earnings surpassed Street expectations. Also, investors were delighted by the company’s strong revenue guidance, which exceeded Street expectations.
Don't Miss Our Christmas Offers:
- Discover the latest stocks recommended by top Wall Street analysts, all in one place with Analyst Top Stocks
- Make smarter investments with weekly expert stock picks from the Smart Investor Newsletter
Q2 Results Snapshot & Guidance
Monday.com reported quarterly revenues of $123.7 million, up an impressive 75% from the previous year. Moreover, the figure comfortably outpaced the consensus estimate of $118.23 million.
However, the company’s losses widened to $0.33 per share, compared to a loss per share of $0.26 reported in the previous year. Yet, the figure came in narrower than the consensus estimate of a loss of $0.75 per share.
Meanwhile, the number of paid customers with more than $50,000 in annual recurring revenue (ARR) increased by a whopping 147% from the prior year to 1,160. The net dollar retention rate for such customers stood at more than 150%.
Notably, Monday.com provided encouraging revenue guidance for the year. For 2022, the company expects revenue to hover between $498 million and $502 million, above the consensus estimate of $491.3 million. For the third quarter, the company expects to see revenues in the range of $130 million to $131 million.
Website Traffic Data Predicted the Strong Results
Monday.com’s strong performance shouldn’t have surprised you if you have been a TipRanks user who leverages the website traffic screener. The company’s rising website traffic portended the company’s strong results.
TipRanks’ Website Traffic Tool, which uses data from SEMrush Holdings (SEMR), the world’s biggest website usage monitoring service, offers insight into Monday.com’s performance this quarter.
According to the tool, the Monday.com website recorded a 69.55% monthly rise in global visits in June, compared to the same period last year. Moreover, year-to-date, Monday.com website traffic increased by 64.45%, compared to the previous year.
Learn how Website Traffic can help you research your favorite stocks.
Is MNDY a Buy?
Top investors seem convinced of the management’s vision and are loading up on the company’s stock.
TipRanks’ Stock Investors tool shows that top investors currently have a Very Positive stance on MNDY. Further, 4% of the top portfolios tracked by TipRanks, increased their exposure to MNDY stock over the past 30 days.
Overall, the consensus among analysts for Monday.com stock is a Strong Buy based on eight Buys and two Holds. The MNDY average price target of $194.44 implies an upside potential of 29.2% from current levels. Shares have declined 32% over the past year.
Key Takeaways
Monday.com’s results for the second quarter have been encouraging, with impressive revenue growth. Further, the rise in some of the key metrics reflects the company’s solid operational strength. Moreover, the company’s outlook in terms of revenue growth appears to be strong.
However, widening losses continue to remain a concern for the company.
Read full Disclosure
