Why the Monday.com action appeared today

Actions of monday.com (MNDY 14.78%) moved 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 pm EDT, the stock was up 11.1% on the news.

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Monday.com continues to grow

Monday’s recovery from a sharp post-pandemic slump continued today as it delivered another round of strong revenue growth and its margins continued to improve.

Revenue rose 34% in the quarter to $236.1 million, easily beating the consensus of $228.8 million. The net dollar retention rate was 110%, which showed that existing customers increased their spending by 10% on the platform; growth was driven more by new customers. New customers with more than 10 users increased 15% to 49,936 to 57,203.

Bottom line, adjusted operating income doubled from $16.6 million to $38.4 million, and adjusted earnings per share (EPS) came in at $0.94, up from $0.41, much more better than estimates of $0.56. The company also reported first-quarter generally accepted accounting principles (GAAP) profit.

CEO Eliran Glazer said: “These results demonstrate not only our highly effective execution, but also the strong demand we continue to see even in a challenging macroeconomic environment.”

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 up to 948 million dollars. That was also better than analysts’ consensus of $947.8 million.

Given the better-than-expected results and guidance increase, it’s no surprise to see the stock rise, especially in what continues to be a difficult macro climate for cloud stocks.