Israel’s Monday.com Registers 75% Increase in Revenue, Shares Surge
Enterprise software company monday.com registered impressive results in the second quarter of 2022 despite the slowdown in the global economy. The Israeli company, traded on Nasdaq, raised its annual forecast after recording revenue of $123.7 million in Q2. “The expansion of our business activity, especially in the enterprise market, is continuing at an excellent pace,” said monday.com’s co-founder and CEO, Roy Mann. “The amount of customers we have in this sector has crossed the 1,000 mark in the second quarter, and we are maintaining one of the best customer retention rates in the industry.”
The company’s revenue increased by 75% compared to the corresponding quarter in 2021, although operating loss continued to be high, reaching $46.2 million. However, its proportion of the revenues decreased slightly from 39% to 37%.
Monday.com stated that it continues to be committed to improving efficiency and focusing on the balance between investment in growth and profitability, which it is still chasing.
Monday recorded a loss of one dollar per share compared to a loss of $1.67 in the corresponding quarter.
Negative cash flow from operations was $14.1 million. In the third quarter, monday.com expects revenues of $130-$131 million, representing growth of 57% to 58% compared to the corresponding quarter and a loss (before one-time expenses) of $24-25 million.
Monday raised the annual forecast for revenues slightly to $498-$500 million, which will reflect a growth of 62%-63% compared to 2021. The operating loss before one-time expenses will be $108-$112 million. In the forecast published in May, Monday expected annual revenues of $488-$492 million and a loss of $135-139 million.
Monday has added that “due to the concerns regarding macroeconomic conditions and the market situation, we gave a cautious but achievable forecast. We saw a certain drop in demand in Europe at the end of the second quarter, and although one month does not provide enough data to indicate a broader trend, we are closely monitoring the demand environment throughout our areas of activity and we will act transparently with investors regarding our expectations.”