Cloud-based work management software company Monday.com (NASDAQ: MNDY) reported better-than-expected results in the second quarter ended June 30, 2022. Earnings and earnings both beat Street’s expectations, and the stock jumped him 17.8% in normal trading hours. Investors were also pleased with the company’s strong earnings guidance, which exceeded Street’s expectations.
Second Quarter Results Snapshot & Guidance
Monday.com’s quarterly revenue was $123.7 million, up 75% year-over-year. Moreover, the figure comfortably beats consensus expectations for his $118.23 million.
However, the company’s loss widened to $0.33 per share, compared with a reported loss of $0.26 per share the year before. Still, the number was narrower than the consensus estimate of a loss of $0.75 per share.
Meanwhile, the number of paying customers with annual recurring revenue (ARR) greater than $50,000 increased 147% year-over-year to 1,160. Net dollar retention for these customers exceeded 150%.
Of note, Monday.com provided promising earnings guidance for the year. In 2022, he expects earnings to be $502 million from his $498 million, above consensus expectations of his $491.3 million. Third quarter revenue is expected to be between $130 million and $131 million.
Website traffic data predicts positive results
TipRanks users of website traffic screeners should not be surprised by Monday.com’s strong performance. The company’s increase in his website traffic boded well for the company.
Using data from SEMrush Holdings (SEMR), the world’s largest website usage monitoring service, TipRanks’ website traffic tool provides insight into Monday.com’s performance this quarter.
According to the tool, Monday.com’s website saw a 69.55% monthly increase in global traffic in June compared to the same period last year. Additionally, year-to-date Monday.com website traffic increased 64.45% year-over-year.
See how website traffic can help you research your favorite stocks.
Are you buying MNDY?
Top investors seem convinced of management’s vision and are investing in the company’s stock.
TipRanks stock investor tool shows that top investors currently have a very positive stance on MNDY. Additionally, 4% of the top portfolios tracked by TipRanks increased his exposure to MNDY stock in the last 30 days.
Overall, the consensus among analysts for Monday.com stock is a strong buy based on 8 buys and 2 holds. The MNDY average price target of $194.44 implies a potential upside of 29.2% from current levels. The stock has fallen 32% over the past year.
Monday.com’s second quarter results are promising, with impressive revenue growth. In addition, the rise in several key indicators reflects the company’s solid operational strength. In addition, the company’s prospects for revenue growth look strong.
However, widening losses remain a concern for the company.
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