Monday.com (MNDY) To Report Earnings Today: Here Is What To Expect

Kayode Omotosho /
2023/08/14 5:00 am EDT

Project management software maker Monday.com (NASDAQ:MNDY) will be reporting earnings today before the bell. Here's what investors should know.

Last quarter Monday.com reported revenues of $162.3 million, up 49.5% year on year, beating analyst revenue expectations by 4.49%. It was a solid quarter for the company, with a decent beat of analysts' revenue estimates and strong sales guidance for the next quarter. The company added 209 enterprise customers paying more than $50,000 annually to a total of 1,683.

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 36.8% year on year to $169.3 million, slowing down from the 75.2% year-over-year increase in revenue the company had recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.21 per share.

Monday.com Total Revenue

Majority of analysts covering the company have reconfirmed their estimates over the last thirty days, suggesting they are expecting the business to stay the course heading into the earnings. The company has a history of exceeding Wall St's expectations, beating revenue estimates every single time over the past two years on average by 7.59%.

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 23.6% year on year, beating analyst estimates by 2.52%, and RingCentral reported revenues up 10.8% year on year, exceeding estimates by 0.55%. Atlassian traded up 12.3% on the results, and RingCentral was down 11.2%.

Read our full analysis of Atlassian's results here and RingCentral's results here.

The fears around raising interest rates have been putting pressure on tech stocks and while some of the software stocks have fared somewhat better, they have not been spared, with share price declining 7.36% over the last month. Monday.com is down 14.9% during the same time, and is heading into the earnings with analyst price target of $194.6, compared to share price of $157.

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.