Earnings To Watch: monday.com (MNDY) Reports Q2 Results Tomorrow

Jabin Bastian 2022/08/07 6:27 am EDT

Project management software maker Monday.com (NASDAQ:MNDY) will be announcing earnings results tomorrow morning. Here's what you need to know.

Last quarter monday.com reported revenues of $108.4 million, up 83.9% year on year, beating analyst revenue expectations by 7.09%. It was a very strong quarter for the company, with a very optimistic guidance for the next quarter and an exceptional revenue growth. The company added 167 enterprise customers paying more than $50,000 annually to a total of 960.

Is monday.com buy or sell heading into the earnings? Read our full analysis here, it's free.

This quarter analysts are expecting monday.com's revenue to grow 67.4% year on year to $118.2 million, slowing down from the 93.6% year-over-year increase in revenue the company had recorded in the same quarter last year. Adjusted loss is expected to come in at -$0.75 per share.

monday.com Total Revenue

The analysts covering the company have been growing increasingly bearish about the business heading into the earnings, with revenue estimates seeing two downward revisions over the last thirty days. The company has a history of exceeding Wall St's expectations, beating revenue estimates every single time since going public on average by 10.1%.

Looking at monday.com's peers in the productivity software segment, some of them have already reported Q2 earnings results, giving us a hint of what we can expect. Atlassian delivered top-line growth of 35.7% year on year, beating analyst estimates by 4.91% and Five9 reported revenues up 31.7% year on year, exceeding estimates by 5.16%. Atlassian traded up 9.13% on the results, and Five9 was up 8.25%. Read our full analysis of Atlassian's results here and Five9's results here.

There has been positive sentiment among investors in the software segment, with the stocks up on average 4.68% over the last month. monday.com is up 8.32% during the same time, and is heading into the earnings with analyst price target of $182.7, compared to share price of $126.08.

One way to find opportunities in the market is to watch for generational shifts in the economy. Almost every company is slowly finding itself becoming a technology company and facing cybersecurity risks and as a result, the demand for cloud-native cybersecurity is skyrocketing. This company is leading a massive technological shift in the industry and with revenue growth of 70% year on year and best-in-class SaaS metrics it should definitely be on your radar.

The author has no position in any of the stocks mentioned.