- Monday.com posted 27% year-over-year revenue growth in Q2, adding a record number of large customers.
- GAAP profitability slipped back into a loss and operating margins narrowed.
- This simple system has nailed 1,000+ post-earnings winners. Get in before Q3 trades take off →
Monday.com Ltd. MNDY shares are volatile Monday after the company reported second-quarter 2025 results.
What To Know: The software company posted revenue of $299 million, up 27% year over year, driven by strong demand from enterprise customers and growth in its customer base. The company also added a record number of net new customers generating over $100,000 in annual recurring revenue (ARR), while its monday CRM product reached $100 million in ARR just three years after launch.
Despite the revenue growth, profitability metrics were mixed. On a non-GAAP basis, operating income was $45.1 million, up from $38.4 million a year ago, but the operating margin slipped to 15% from 16%.
The number of paying customers with more than 10 users rose 8% to 61,803. Large customers also grew sharply, with those generating over $50,000 in ARR up 36% and those over $100,000 in ARR up 46% from the prior year. Net dollar retention rates remained strong, reaching 117% for customers spending more than $100,000 annually.
Management highlighted that AI-driven capabilities are becoming a core part of the company's strategy. "We continue to see evidence that our commitment to AI innovation is delivering real value for customers," said co-CEOs Roy Mann and Eran Zinman.
Looking ahead, Monday.com expects third-quarter revenue of $311 million to $313 million, representing 24% to 25% growth. For the full year, the company projects revenue of $1.224 billion to $1.229 billion.
MNDY Price Action: Monday.com shares were down 26.5% at $182.2 at the time of writing, according to Benzinga Pro.
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