Shares of Monday.com (MNDY 4.22%) were moving higher today after the cloud software customer-resource management (CRM) company posted better-than-expected results in its second-quarter earnings report. It also raised its guidance for the full year.
As of 2:20 p.m. EDT, the stock was up 11.1% on the news.
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Monday.com keeps growing
Monday's recovery from a sharp post-pandemic slide continued today as it delivered another round of strong revenue growth, and its margins continued to improve.
Revenue jumped 34% in the quarter to $236.1 million, easily beating the consensus at $228.8 million. Net-dollar retention rate was 110%, which showed that existing customers increased their spending by 10% on the platform; growth was more driven by new customers. New customers with more than 10 users increased 15% to 49,936 to 57,203.
On the bottom line, adjusted-operating income more than doubled from $16.6 million to $38.4 million, and adjusted earnings per share (EPS) reached $0.94, up from $0.41, much better than estimates at $0.56. The company also reported its first quarter of generally accepted accounting principles (GAAP) profit.
CEO Eliran Glazer said, "These results demonstrate not only our highly effective execution, but the strong demand we continue to see even through a challenging macroeconomic environment."
NASDAQ: MNDY
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What's next for Monday
Looking ahead, Monday.com sees better times ahead, raising its revenue forecast to $956 million to $961 million, up 31% to 32% from a year ago and above its previous range of $942 million to $948 million. That was also better than the analyst consensus at $947.8 million.
Given the better-than-expected results and the guidance hike, it's not surprising to see the stock moving higher, especially in what continues to be a difficult macroclimate for cloud stocks.
