Monday.com Shares Sink 18% On Cautious Guidance

monday.com MNDY shares plunged about 18% premarket Monday despite delivering a Q2 beat on both revenue and profit. The work management software maker posted $299 million in revenue, up 27% year-over-year, and non-GAAP EPS of $1.09, up 16% both topping analyst expectations.

Co-Founders Roy Mann and Eran Zinman called it another strong quarter with growing demand from enterprise customers. Net dollar retention came in at 111%, and 117% for customers spending over $100,000 in ARR.

Still, Citi's Steven Enders said the company's guidance came in more cautious than hoped. Management nudged its 2025 revenue outlook to $1.224 billion$1.229 billion from $1.220 billion$1.226 billion, EBIT to $154 million$158 million from $144 million$150 million, and free cash flow to $320 million$326 million from $310 million$316 million. Analysts noted the bump was smaller than the Q2 beat and likely conservative.

For Q3, revenue is expected at $311 million$313 million, roughly in line with consensus. Investors appear to be reacting to the tempered guidance rather than the solid quarter, sending the stock sharply lower.