Monday.com shares tumble despite Q2 earnings beat

Published 11/08/2025, 12:16
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Investing.com -- Monday.com Ltd. reported second-quarter earnings that exceeded analyst expectations, but shares plunged over 18%.

The work management software company posted adjusted earnings of $1.09 per share for the second quarter, significantly beating the analyst consensus of $0.86. Revenue came in at $299 million, up 27% YoY and above the $293.58 million analysts had expected.

The company’s net dollar retention rate was 111%, while the net dollar retention rate for customers with more than 10 users was 115%.

"Q2 marked another strong quarter for monday.com, with continued revenue growth and rapidly growing demand for our broad product suite, particularly from enterprise customers," said monday.com co-founders and co-CEOs Roy Mann and Eran Zinman.

The company added a record number of customers with over $100,000 in annual recurring revenue (ARR), bringing the total to 1,472, up 46% from the same period last year. Monday.com also announced that its CRM product recently reached $100 million in ARR, just three years after launch.

For the third quarter, monday.com expects revenue between $311 million and $313 million, representing 24-25% YoY growth. The guidance is in line with the analyst consensus of $312.9 million. For the full fiscal year 2025, the company projects revenue of $1.224-1.229 billion, also aligning with analyst expectations.

The company’s non-GAAP operating income was $45.1 million with a 15% operating margin, compared to $38.4 million and a 16% margin in the second quarter of 2024, showing slight margin compression despite revenue growth.

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