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Monday.com (MNDY) reported robust 2Q25 results, continuing its impressive streak of surpassing analyst expectations. The strong results were driven by robust demand for its multi-product Work OS platform, significant investments in AI-driven features enhancing user productivity, and the scalable MondayDB 2.0 infrastructure, which supports efficient growth and enterprise adoption. However, despite beating revenue and EPS estimates, the stock has plummeted to 52-week lows, driven by the company's conservative revenue outlook for Q3 and FY25.

• While MNDY has a consistent track record of outperforming quarterly expectations, having topped EPS estimates in every quarter over the past year and only missing revenue expectations once in that period, the company's guidance history remains less predictable. The company guided Q3 revenue to $311-$313 mln, aligning closely with the consensus estimate, echoing the in-line Q2 guidance issued last quarter that disappointed investors.
• Furthermore, MNDY raised its FY25 revenue guidance by only $3.5 mln to $1.224-$1.229 bln, despite a $5.5 mln Q2 revenue beat, suggesting modest downside expectations for 2H25. This cautious guidance contrasts with the company’s strong execution and may reflect management's conservative approach amid macroeconomic uncertainties or competitive pressures in the project management software space.
• In terms of its Q2 results, key metrics underscore MNDY’s operational strength, particularly among its high-value customer base. The Net Dollar Retention Rate for customers with more than $100,000 in ARR held steady at an impressive 117%, reflecting robust upsell and cross-sell activity, especially among enterprise clients. The number of paid customers with over $100,000 in ARR surged 46% yr/yr to 1,472, demonstrating the platform’s stickiness and ability to drive expansion within larger accounts.
• These metrics are fueled by MNDY’s AI advancements, including new features like monday magic, monday vibe, and monday sidekick, which enhance platform flexibility and address core customer challenges, alongside the rapid growth of its CRM product, which reached $100 mln in ARR just three years after launch. The company’s focus on integrating AI across its product suite has driven strong adoption, particularly among enterprise customers seeking efficiency and strategic prioritization tools.

MNDY delivered a solid Q2 with a 16% yr/yr increase in adjusted EPS, reflecting resilient demand for its project management solutions and strong operating leverage. The company’s ongoing R&D investments in AI and product innovation continue to bolster its competitive edge, despite conservative guidance tempering investor enthusiasm.