Monday.Com Ltd (NASDAQ:MNDY) stock rose 0.94% (As on August 12, 11:19:19 AM UTC-4, Source: Google Finance) after the company reported second-quarter earnings that exceeded analyst expectations. The company’s net dollar retention rate was 111%, while the net dollar retention rate for customers with more than 10 users was 115%. The company added a record number of customers with over $100,000 in annual recurring revenue (ARR), bringing the total to 1,472, up 46% from the same period last year. Monday.com also announced that its CRM product recently reached $100 million in ARR, just three years after launch. The enterprise segment is the fastest-growing, with a record number of net new customers paying over $100,000 annually. The company’s non-GAAP operating income was $45.1 million with a 15% operating margin, compared to $38.4 million and a 16% margin in the second quarter of 2024, showing slight margin compression despite revenue growth. Net cash provided by operating activities was $66.8 million, with $64.1 million of adjusted free cash flow, compared to net cash provided by operating activities of $55.8 million and $50.8 million of adjusted free cash flow in the second quarter of 2024. The company has announced three new AI-powered capabilities – monday magic, monday vibe, and monday sidekick.

MNDY in the second quarter of FY25 has reported the adjusted earnings per share of $1.09, beating the analysts’ estimates for the adjusted earnings per share of 86 cents. The company had reported the adjusted revenue growth of 27 percent to $299 million in the second quarter of FY25, beating the analysts’ estimates for revenue of $293.58 million.

For the third quarter, monday.com expects revenue between $311 million and $313 million, representing 24-25% YoY growth. The guidance is in line with the analyst consensus of $312.9 million. Third quarter non-GAAP operating income is expected to be in the range of $34 million to $36 million and operating margin of 11% to 12%.

For the full fiscal year 2025, the company projects revenue of $1.224-1.229 billion, also aligning with analyst expectations. For fiscal 2025, Non-GAAP operating income is expected to be in the range of $154 million to $158 million and operating margin of approximately 13%, adjusted free cash flow is expected to be in the range of $320 million to $326 million and adjusted free cash flow margin is expected to be in the range of 26% to 27%.