monday.com’s $0.86 Billion Volume Tumbles to 115th as Mixed Earnings and Margin Pressures Weigh on Shares

On August 12, 2025, monday.com (MNDY) closed with a 1.14% decline, trading at a volume of $0.86 billion—48.42% lower than the previous day and ranking 115th in market activity. The stock’s performance followed mixed signals from its Q2 2025 earnings report, which highlighted both robust revenue growth and operational headwinds. Revenue surged 27% year-over-year to $299 million, driven by enterprise expansion and AI adoption, while non-GAAP operating margin stabilized at 15%. However, the company warned of challenges in small-business customer acquisition linked to Google algorithm changes, and net dollar retention (NDR) dipped to 111% from 112% in the prior quarter.

Management emphasized progress in high-margin segments, with monday CRM reaching $100 million in annual recurring revenue and enterprise customer additions hitting records. Strategic hires, including a Chief Customer Officer and CMO, were cited as catalysts for long-term growth. Despite these positives, the stock underperformed as investors reacted to margin compression, with operating margin slipping to -3.9% compared to 0.8% in the prior year. The company also acknowledged temporary pressures from digital marketing shifts, though it remains confident in its ability to reallocate resources to higher-return channels.

Looking ahead, monday.com raised its full-year revenue guidance to $1.224–$1.229 billion, reflecting sustained enterprise traction and multi-product cross-selling. However, second-half guidance for Q3 2025 was set at $311–$313 million, a 24–25% year-over-year increase—below the high-growth expectations seen earlier in the year. The company’s $1.59 billion cash reserves will prioritize organic growth, product innovation, and potential inorganic opportunities, though management emphasized disciplined execution to balance expansion with profitability.

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