monday.com revenue outlook weighs on shares despite Q2 earnings beat
monday.com (NASDAQ:MNDY) shares fell about 6% after the company guided Q3 revenue to $368 million to $370 million, slightly below Wall Street expectations. It reported Q2 revenue of $364.6 million and adjusted EPS of $1.48. Full-year revenue guidance was kept at $1.466 billion to $1.474 billion.
How this was made
The 30-second read
Why it matters
Traders likely re-priced the stock on the forward revenue midpoint miss, while AI ARR growth and maintained full-year targets may limit the downside if investors view the guide as conservative.
Market read
A guidance midpoint below consensus outweighed the Q2 beat, making forward revenue trajectory the key near-term trading variable.
What to watch
The outlook includes a stated negative FX impact assumption (100 to 200 bps), which could make reported guidance look softer if FX moves favorably.
Background
monday.com reported a Q2 revenue and EPS beat, then issued Q3 revenue guidance slightly below Wall Street expectations.
Ticker impact
monday.com guided Q3 revenue to $368M-$370M, slightly below expectations, driving a roughly 6% share drop despite a Q2 beat.
Near-term downside risk persists until investors see evidence the Q3 guide is conservative or AI-driven demand accelerates.
The article cites a below-consensus Q3 midpoint ($368M-$370M vs ~$372.8M expected) as the reason for the stock decline, while also noting AI product ARR doubled and full-year revenue guidance was maintained.
Market effects
Reinforces that investors are trading software names on forward revenue guidance, not just earnings beats, especially for AI-related narratives.
No specific regional spillover mentioned.
No explicit global macro or cross-border catalyst beyond FX sensitivity in guidance assumptions.
Counterpoint
The company’s AI ARR acceleration and maintained full-year revenue and operating income guidance suggest the Q3 guide may reflect timing rather than demand weakness.
Key entities
- companymonday.com
Software company whose Q3 revenue guidance and AI ARR metrics drove the stock reaction.
- executivesRoy Mann and Eran Zinman
Co-founders and co-CEOs who discussed restructuring and commitment to the AI Work Platform.
