Work management platform provider Monday.com (MNDY) continues to outperform in a challenging IT spending environment, reporting a 34% revenue growth in Q2. The company has again raised its FY24 revenue guidance to $956-$961 million, up from its original forecast of $926-$932 million, marking a significant increase of $29.5 million at the midpoint.
- Enterprise software companies have faced mixed demand, but the work management platform space, including MNDY, remains robust. This follows strong quarterly results from Asana (ASAN) and Smartsheet (SMAR) on May 30 and June 5, respectively.
- Amid a tough macroeconomic environment, many companies focus on operational efficiency and productivity without expanding their workforces, benefiting work management tools like MNDY's platform.
- MNDY's enterprise go-to-market strategy is thriving. In Q2, its largest customer tripled its seat count to 80,000, expanding MNDY's platform across the entire organization after initial implementation with finance and product teams.
- The number of paid customers with more than $50,000 in ARR increased by 48% to 2,491, and the net dollar retention rate for customers with over $100,000 in ARR was 114%.
- MNDY is rolling out product-wide price increases to about 40% of its customer base, expecting a revenue benefit of $25 million this year and $75-$80 million from FY24-FY26.
- The company launched mondayDB 2.0 this quarter, enhancing its technology architecture to support large enterprises. The new version allows customers to manage boards with up to 100,000 items and provides a dashboard for up to 500,000 items.
The main takeaway is that MNDY's strong beat-and-raise earnings report shows resilience, with no signs of the elongated sales cycles and heightened deal scrutiny seen by many enterprise software companies.
