Monday.com Q2 Results: Revenue rises 22% YoY to $364.6 million
Monday.com (NASDAQ: MNDY) reported Q2 revenue of $364.6 million, up 22% YoY and above the $355.6 million estimate. Non-GAAP operating income was $61.1 million vs $46.6 million expected. Analysts cited decelerating growth, NNARR declines, and restructuring savings of about $100 million vs $160 million estimate, with Cantor cutting its target to $90.
How this was made
The 30-second read
Why it matters
The article’s key trading tension is that profitability improved, but growth momentum indicators (NNARR and net new revenue) and restructuring savings came in below expectations, prompting a downgrade and a negative stock reaction.
Market read
Traders should focus on whether the AI and enterprise pivot can re-accelerate net new revenue/NNARR, given the market’s skepticism about restructuring savings and growth durability.
What to watch
Currency tailwind (100-110 bps) and the company’s full-year revenue guidance midpoint ($1.47B) may support longer-duration holders despite sequential deceleration.
Background
Monday.com’s Q2 print is framed as a transition toward AI and enterprise go-to-market, alongside restructuring aimed at cost savings.
Ticker impact
Monday.com reported Q2 revenue of $364.6M and non-GAAP operating income of $61.1M, but shares fell on concerns about decelerating growth and lower restructuring savings.
Near-term volatility likely as investors weigh margin support versus decelerating net new revenue and reduced annualized cost savings.
The article provides both the upside datapoints (revenue and operating income beats, AI contribution to net new ARR) and the downside drivers (NNARR decline, net new revenue contraction, cost savings below estimate, and a downgrade to Neutral).
Market effects
Reinforces that SaaS investors are scrutinizing sustainable growth and the durability of margin expansion tied to restructuring.
No specific regional spillover beyond US-listed SaaS sentiment.
Limited; the story is company-specific with only a minor currency tailwind discussion.
Counterpoint
The revenue and non-GAAP operating income beats, plus AI-driven net new ARR contribution, could mean the market is over-penalizing near-term NNARR softness.
Key entities
- companyMonday.com Ltd
Reported Q2 revenue and non-GAAP operating income, with guidance and restructuring cost-savings details driving the market reaction.
- analystCantor Fitzgerald (Thomas Blakey)
Downgraded MNDY from Overweight to Neutral and cut the price target, citing NNARR decline and lower restructuring savings.
- analystDA Davidson (Lucky Schreiner)
Reaffirmed Buy, citing the earnings beat and AI products’ contribution to net new ARR, while noting sequential growth deceleration.
- analystBTIG (Allan Verkhovski)
Reiterated Buy, highlighting currency tailwind and lowering FY27 growth estimates.
