Monday.com Shares Plunge 27% Despite Strong Q2 Earnings Beat

Monday.com delivered a mixed quarter that showcased robust growth but failed to satisfy market expectations. Revenue climbed 27% year-over-year to $299 million, surpassing analyst estimates of $293.6 million. Adjusted earnings of $1.09 per share outperformed consensus by 27%.

The project management software provider's stock nonetheless cratered 26.85% to $181.44 as investors focused on disappointing guidance. Third-quarter revenue projections fell slightly below Wall Street's expectations, overshadowing the company's raised full-year outlook to $1.23 billion.

Operational metrics revealed underlying strength - non-GAAP operating income grew to $45.1 million while cash FLOW from operations reached $66.8 million. The market's harsh reaction suggests heightened sensitivity to guidance in the current SaaS valuation environment.