monday.com Announces Second Quarter 2025 Results

About this update from Monday.com Ltd.

Second quarter revenue of $299.0 million grew 27% year over year Added a record number of net new customers with over $100k in ARR monday CRM recently reached $100 million in ARR NEW YORK & TEL AVIV, Israel --(BUSINESS WIRE)-- monday.com (NASDAQ: MNDY) today reported financial results for its second quarter ended June 30, 2025 . Management Commentary: “Q2 marked another strong quarter for monday.com , with continued revenue growth and rapidly growing demand for our broad product suite, particularly from enterprise customers,” said monday.com co-founders and co-CEOs Roy Mann and Eran Zinman . “We continue to see evidence that our commitment to AI innovation is delivering real value for customers, and we’re proud to be leading a new era of work execution. By taking the platform’s flexibility to the next level, our new AI capabilities address core challenges across all our product areas and allow users to focus on their most critical strategic priorities.” “This quarter demonstrated our relentless focus on driving highly efficient growth at scale, and I’m energized by the momentum in our business and the opportunities we see ahead,” said Eliran Glazer , monday.com CFO. “As we navigate the shifting landscape, we remain focused on the factors we can control – executing on our innovation roadmap, bolstering our go-to-market efforts to serve customers of all sizes, driving best-in-class operational efficiencies, and delivering products people love.” Second Quarter Fiscal 2025 Financial Highlights: Revenue was $299.0 million , an increase of 27% year-over-year. GAAP operating loss was $11.6 million compared to GAAP operating income of $1.8 million in the second quarter of 2024; GAAP operating margin was negative 4% compared to 1% in the second quarter of 2024. Non-GAAP operating income was $45.1 million compared to $38.4 million in the second quarter of 2024; non-GAAP operating margin was 15%, compared to 16% in the second quarter of 2024. GAAP basic and diluted net income per share was $0.03 , compared to GAAP basic and diluted net income per share of $0.29 and $0.27 , respectively, in the second quarter of 2024; non-GAAP basic and diluted net income per share was $1.13 and $1.09 , respectively, compared to non-GAAP basic and diluted net income per share of $0.99 and $0.94 , respectively, in the second quarter of 2024. 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. Recent Business Highlights: Net dollar retention rate was 111%. Net dollar retention rate for customers with more than 10 users was 115%. Net dollar retention rate for customers with more than $50,000 in ARR was 116%. Net dollar retention rate for customers with more than $100,000 in ARR was 117%. The number of paid customers with more than 10 users was 61,803, up 8% from 57,203 as of June 30, 2024 . The number of paid customers with more than $50,000 in ARR was 3,702, up 36% from 2,713 as of June 30, 2024 . The number of paid customers with more than $100,000 in ARR was 1,472, up 46% from 1,009 as of June 30, 2024 . Appointed Harris Beber as Chief Marketing Officer. Appointed Adi Dar as Chief Customer Officer. monday CRM recently reached $100 million in ARR, just three years since launch. Announced three new AI-powered capabilities - monday magic, monday vibe, and monday sidekick. Financial Outlook: For the third quarter of fiscal year 2025, monday.com currently expects: Total revenue of $311 million to $313 million , representing year-over-year growth of 24% to 25%. Non-GAAP operating income of $34 million to $36 million and operating margin of 11% to 12%. For the full year 2025, monday.com currently expects: Total revenue of $1,224 million to $1,229 million , representing year-over-year growth of approximately 26%. Non-GAAP operating income of $154 million to $158 million and operating margin of approximately 13%. Adjusted free cash flow of $320 million to $326 million and adjusted free cash flow margin of 26% to 27%. Non-GAAP Financial Measures: This press release and the accompanying tables contain the following non-GAAP financial measures: non-GAAP gross profit, non-GAAP gross margin, non-GAAP sales and marketing expenses, non-GAAP research and development expenses, non-GAAP general and administrative expenses, non-GAAP operating income, non-GAAP operating margin, non-GAAP net income, non-GAAP net income per share, adjusted free cash flow, which is defined as free cash flow plus costs associated with the built-out and expansion of our corporate headquarters and adjusted free cash flow margin. Certain of these non-GAAP financial measures exclude share-based compensation. monday.com believes that these non-GAAP financial measures provide useful information to management and investors regarding certain financial and business trends relating to monday.com’s financial condition and results of operations. monday.com management uses these non-GAAP measures to compare monday.com performance to that of prior periods, for trend analysis and for budgeting and planning purposes. monday.com believes that the use of these non-GAAP financial measures provides an additional tool for investors to use in evaluating ongoing operating results and trends and in comparing monday.com financial results to the results of other software companies, many of which present similar non-GAAP financial measures to investors. The non-GAAP financial information is presented for supplemental informational purposes only and should not be considered a substitute for financial information presented in accordance with GAAP and may be different from similarly titled non-GAAP measures used by other companies. Management does not consider these non-GAAP measures in isolation or as an alternative to financial measures determined in accordance with GAAP. The principal limitation of these non-GAAP financial measures is that they exclude significant expenses and income that are required by GAAP to be recorded in monday.com financial statements. In addition, they are subject to inherent limitations as they reflect the exercise of judgment by management about which expenses and income are excluded or included in determining these non-GAAP financial measures. Reconciliation tables of the most directly comparable GAAP financial measures to the non-GAAP financial measures used in this press release are included with the financial tables at the end of this release. monday.com urges investors to review these reconciliation tables and not to rely on any single financial measure to evaluate the monday.com business. Management is not able to forecast GAAP operating income (loss) on a forward-looking basis without unreasonable efforts due to the high variability and difficulty in predicting share-based compensation expense, the amounts of which may be significant in future periods. Management is not able to forecast GAAP net cash provided by operating activities on a forward-looking basis without unreasonable efforts due to the high variability and difficulty in predicting property and equipment purchases and capitalized software costs, the amounts of which may be significant in future periods. Definitions of Business Key Performance Indicators Net Dollar Retention Rate We calculate Net Dollar Retention Rate as of a period end by starting with the ARR from customers as of the 12 months prior to such period end (“Prior Period ARR”). We then calculate the ARR from these customers as of the current period end (“Current Period ARR”). The calculation of Current Period ARR includes any upsells, contraction and attrition. We then divide the total Current Period ARR by the total Prior Period ARR to arrive at the Net Dollar Retention Rate. For the trailing 12-month calculation, we take a weighted average of this calculation of our quarterly Net Dollar Retention Rate for the four quarters ending with the most recent quarter. Annual Recurring Revenue (“ARR”) Is defined to mean, as of the measurement date, the annualized value of our customer subscription plans assuming that any contract that expires during the next 12 months is renewed on its existing terms. Forward-Looking Statements: This press release contains “forward-looking statements” within the meaning of the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995, including but not limited to, statements regarding our financial outlook and market positioning. These forward-looking statements are made as of the date they were first issued and were based on current expectations, estimates, forecasts and projections as well as the beliefs and assumptions of management. Words such as “outlook,” “guidance,” “expect,” “anticipate,” “should,” “believe,” “hope,” “target,” “project,” “plan,” “goals,” “estimate,” “potential,” “predict,” “may,” “will,” “might,” “could,” “intend,” “shall” and variations of these terms or the negative of these terms and similar expressions are intended to identify these forward-looking statements. Forward-looking statements are subject to a number of risks and uncertainties, many of which involve factors or circumstances that are beyond monday.com control. monday.com’s actual results could differ materially from those stated or implied in forward-looking statements due to a number of factors, including but not limited to our ability to effectively manage the scope and complexity of our business following years of rapid growth and our ability to maintain profitability; foreign currency exchange rate fluctuations; the fact that we continue to derive a majority of revenues from monday work management; fluctuations in operating results; real or perceived errors, failures, vulnerabilities or bugs in our platform, products or third-party applications offered in our app marketplace or interruptions or performance problems in the technology or infrastructure underlying our platform; risks related to artificial intelligence and machine learning; our ability to attract customers, grow our retention rates and expand usage within organizations, including cross-selling and upselling; risks related to our subscription-based business model; our sales efforts may require considerable time and expense and the use of differing sales strategies may extend our sales cycles; changes in sizes or types of business that purchase our platform and products; our ability to offer high-quality customer support and consistent sales strategies; maintenance of corporate culture; risks related to international operations and compliance with laws and regulations applicable to our global operations; risks related to acquisitions, strategic investments, partnerships, or alliances; risks associated with environmental and social responsibility and climate change; our dependence on key employees and ability to attract and retain highly skilled employees; our ability to raise additional capital or generate cash flows necessary to grow our business; uncertain global economic conditions and inflation; changes and competition in the market and software categories in which we participate; our ability to introduce new products, features, integrations, capabilities, and enhancements; the ability of our platform to interoperate with a variety of software applications; our reliance on third-party application stores to distribute our mobile application; our successful strategic relationships with, and our dependence on third parties; our reliance on traditional web search engines to direct traffic to our website; interruption or delays in service from third parties or our inability to plan and manage interruptions; risks related to security disruptions, unauthorized system access; evolving privacy protection and data security laws, regulations, industry standards, policies, contractual obligations, and cross-border data transfer or localization restrictions; new legislation and regulatory obligations regulating AI; changes in tax law and regulations or if we were to be classified as a passive foreign investment company; our ability to maintain, protect or enforce our intellectual property rights or intellectual property infringement claims; risks related to our use of open-source software; risks related to our founder share that provides certain veto rights; risks related to our status as a foreign private issuer incorporated and located in Israel , including risks related to the ongoing war between Israel and Hamas and escalations thereof; our expectation not to pay dividends for the foreseeable future; risks related to our Digital Lift Initiative and the monday.com Foundation; risks related to legal and regulatory matters; and other factors described in “Risk Factors” in our Annual Report on Form 20-F for the year ended December 31, 2024 , filed with the SEC on March 17, 2025 . Further information on potential risks that could affect actual results will be included in the subsequent filings that monday.com makes with the Securities and Exchange Commission from time to time. Past performance is not necessarily indicative of future results. The forward-looking statements included in this press release represent monday.com’s views as of the date of this press release. monday.com anticipates that subsequent events and developments will cause its views to change. monday.com undertakes no intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise. These forward-looking statements should not be relied upon as representing monday.com’s views as of any date subsequent to the date of this press release. Earnings Webcast: monday.com will hold a public webcast at 8:30 a.m. ET today to discuss the results for its second quarter 2025 and financial outlook. The live call may also be accessed via telephone at +1 (646) 968-2525 or +1 (888) 596-4144 (toll-free). Please reference conference ID: 1347415. An archived webcast can be accessed from the News & Events section of monday.com’s Investor Relations website following the call. Investor Presentation Details: An investor presentation providing additional information can be found at http://ir.monday.com . About monday.com : monday.com is a global software company that builds products people love to manage the core of their work. Our product suite can adapt to the needs of diverse industries and use cases within one powerful platform. Our ~245,000 customers are reimagining how work gets done, driving greater efficiency, and scaling like never before. For more information, visit monday.com . MONDAY.COM LTD CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS ( U.S. dollars in thousands, except share and per share data) Three months ended June 30 , Six months ended June 30 , 2025 2024 2025 2024 (unaudited) (unaudited) Revenue $ 299,014 $ 236,106 $ 581,264 $ 453,019 Cost of revenue 31,173 23,763 59,978 47,217 Gross profit 267,841 212,343 521,286 405,802 Operating expenses: Research and development 87,039 50,445 156,424 94,868 Sales and marketing 152,590 131,471 294,310 259,612 General and administrative 39,763 28,633 72,307 54,550 Total operating expenses 279,392 210,549 523,041 409,030 Operating income (loss) (11,551 ) 1,794 (1,755 ) (3,228 ) Financial income, net 14,102 14,850 31,749 27,689 Income before income taxes 2,551 16,644 29,994 24,461 Income tax expense (978 ) (2,329 ) (996 ) (3,068 ) Net income $ 1,573 $ 14,315 $ 28,998 $ 21,393 Net income per share attributable to ordinary shareholders, basic $ 0.03 $ 0.29 $ 0.57 $ 0.43 Net income per share attributable to ordinary shareholders, diluted $ 0.03 $ 0.27 $ 0.55 $ 0.41 Weighted-average ordinary shares used in calculating net income per ordinary share, basic 51,385,862 49,680,114 51,196,507 49,442,327 Weighted-average ordinary shares used in calculating net income per ordinary share, diluted 53,271,524 52,209,431 53,149,561 52,106,369 MONDAY.COM LTD CONDENSED CONSOLIDATED BALANCE SHEETS ( U.S. dollars in thousands) June 30 , December 31 , 2025 2024 ASSETS (unaudited) (audited) CURRENT ASSETS: Cash and cash equivalents $ 1,590,515 $ 1,411,602 Marketable securities 60,102 50,004 Accounts receivable, net 36,196 25,804 Prepaid expenses and other current assets 87,237 44,836 Total current assets 1,774,050 1,532,246 LONG-TERM ASSETS: Property and equipment, net 47,232 41,576 Operating lease right-of-use assets 109,612 94,703 Other long-term assets 33,077 16,983 Total long-term assets 189,921 153,262 Total assets $ 1,963,971 $ 1,685,508 LIABILITIES AND SHAREHOLDERS' EQUITY CURRENT LIABILITIES: Accounts payable $ 41,859 $ 35,611 Accrued expenses and other current liabilities 198,429 171,040 Deferred revenue, current 402,794 339,951 Operating lease liabilities, current 29,828 29,013 Total current liabilities 672,910 575,615 LONG-TERM LIABILITIES: Operating lease liabilities, non-current 96,384 77,023 Deferred revenue, non-current 2,299 2,639 Total long-term liabilities 98,683 79,662 Total liabilities 771,593 655,277 SHAREHOLDERS' EQUITY: Other comprehensive income 22,984 3,189 Share capital and additional paid-in capital 1,692,428 1,579,074 Accumulated deficit (523,034 ) (552,032 ) Total shareholders’ equity 1,192,378 1,030,231 Total liabilities and shareholders’ equity $ 1,963,971 $ 1,685,508 MONDAY.COM LTD CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS ( U.S. dollars in thousands) Three months ended June 30 , Six months ended June 30 , 2025 2024 2025 2024 unaudited unaudited CASH FLOWS FROM OPERATING ACTIVITIES: Net income $ 1,573 $ 14,315 $ 28,998 $ 21,393 Adjustments to reconcile net income to net cash provided by operating activities : Depreciation and amortization 3,375 2,920 6,625 5,453 Share-based compensation 56,645 36,623 87,603 63,166 Amortization of discount and accretion of interest on marketable securities 580 — (95 ) — Changes in operating assets and liabilities: Accounts receivable, net (9,760 ) (1,292 ) (10,392 ) (1,691 ) Prepaid expenses and other assets (16,987 ) (17,306 ) (26,757 ) (15,199 ) Accounts payable 10,068 9,625 6,224 21,668 Accrued expenses and other liabilities, net 2,941 (3,636 ) 24,098 2,710 Deferred revenue 18,402 14,545 62,503 50,249 Net cash provided by operating activities 66,837 55,794 178,807 147,749 CASH FLOWS FROM INVESTING ACTIVITIES: Purchase of property and equipment (5,884 ) (4,504 ) (9,571 ) (5,964 ) Purchase of marketable securities — — (10,049 ) — Capitalized software development costs (924 ) (469 ) (1,703 ) (1,070 ) Net cash used in investing activities (6,808 ) (4,973 ) (21,323 ) (7,034 ) CASH FLOWS FROM FINANCING ACTIVITIES: Proceeds from exercise of share options and employee share purchase plan 12,365 10,616 26,501 19,324 Receipt (repayment) of tax advance relating to exercises of share options and RSUs, net (9,484 ) 4,261 (5,072 ) 14,075 Net cash provided by financing activities 2,881 14,877 21,429 33,399 INCREASE IN CASH, AND CASH EQUIVALENTS 62,910 65,698 178,913 174,114 CASH AND CASH EQUIVALENTS - Beginning of period 1,527,605 1,224,544 1,411,602 1,116,128 CASH AND CASH EQUIVALENTS - End of period $ 1,590,515 $ 1,290,242 $ 1,590,515 $ 1,290,242 MONDAY.COM LTD Reconciliation of GAAP to Non-GAAP Financial Information ( U.S. dollars in thousands) Three months ended June 30 , Six months ended June 30 , 2025 2024 2025 2024 (unaudited) (unaudited) Reconciliation of gross profit and gross margin GAAP gross profit $ 267,841 $ 212,343 $ 521,286 $ 405,802 Share-based compensation 2,272 1,872 3,406 3,116 Non-GAAP gross profit $ 270,113 $ 214,215 $ 524,692 $ 408,918 GAAP gross margin 90 % 90 % 90 % 90 % Non-GAAP gross margin 90 % 91 % 90 % 90 % Reconciliation of operating expenses GAAP research and development $ 87,039 $ 50,445 $ 156,424 $ 94,868 Share-based compensation (27,806 ) (13,567 ) (43,347 ) (23,193 ) Non-GAAP research and development $ 59,233 $ 36,878 $ 113,077 $ 71,675 GAAP sales and marketing $ 152,590 $ 131,471 $ 294,310 $ 259,612 Share-based compensation (13,367 ) (10,733 ) (19,205 ) (18,068 ) Non-GAAP sales and marketing $ 139,223 $ 120,738 $ 275,105 $ 241,544 GAAP general and administrative $ 39,763 $ 28,633 $ 72,307 $ 54,550 Share-based compensation (13,200 ) (10,451 ) (21,645 ) (18,789 ) Non-GAAP general and administrative $ 26,563 $ 18,182 $ 50,662 $ 35,761 Reconciliation of operating income (loss) GAAP operating income (loss) $ (11,551 ) $ 1,794 $ (1,755 ) $ (3,228 ) Share-based compensation 56,645 36,623 87,603 63,166 Non-GAAP operating income $ 45,094 $ 38,417 $ 85,848 $ 59,938 GAAP operating margin (4 %) 1 % (0 %) (1 %) Non-GAAP operating margin 15 % 16 % 15 % 13 % Reconciliation of net income GAAP net income $ 1,573 $ 14,315 $ 28,998 $ 21,393 Share-based compensation 56,645 36,623 87,603 63,166 Tax expense (benefit) related to share-based compensation(1) 78 (1,620 ) 78 (3,525 ) Non-GAAP net income $ 58,296 $ 49,318 $ 116,679 $ 81,034 Reconciliation of weighted average number of shares outstanding Weighted-average ordinary shares used in calculating GAAP and Non-GAAP net income per ordinary share, basic 51,385,862 49,680,114 51,196,507 49,442,327 Effect of dilutive shares 1,885,662 2,529,317 1,953,054 2,664,042 Weighted-average ordinary shares used in calculating GAAP and Non-GAAP net income per ordinary share, diluted 53,271,524 52,209,431 53,149,561 52,106,369 GAAP net income per share, basic $ 0.03 $ 0.29 $ 0.57 $ 0.43 GAAP net income per share, diluted $ 0.03 $ 0.27 $ 0.55 $ 0.41 Non-GAAP net income per share, basic $ 1.13 $ 0.99 $ 2.28 $ 1.64 Non-GAAP net income per share, diluted $ 1.09 $ 0.94 $ 2.20 $ 1.56 (1) The tax benefit related to share-based compensation was excluded in calculating non-GAAP net income and non-GAAP net income per basic and diluted share. The Company believes that excluding the tax benefit enables investors to see the full effect that excluding share-based compensation expenses had on the operating results. MONDAY.COM LTD Reconciliation of net cash provided by operating activities to adjusted free cash flow ( U.S. dollars in thousands) Three months ended June 30 , Six months ended June 30 , 2025 2024 2025 2024 (unaudited) (unaudited) Net cash provided by operating activities $ 66,837 $ 55,794 $ 178,807 $ 147,749 Purchase of property and equipment (5,884 ) (4,504 ) (9,571 ) (5,964 ) Capitalized software development costs (924 ) (469 ) (1,703 ) (1,070 ) Purchase of property and equipment related to build-out and expansion of our corporate headquarters 4,064 — 6,092 — Adjusted free cash flow $ 64,093 $ 50,821 173,625 140,715 Adjusted free cash flow margin 21 % 22 % 30 % 31 % View source version on businesswire.com : https://www.businesswire.com/news/home/20250811246144/en/ Investor Relations: Byron Stephen [email protected] Media Relations: Julie Case [email protected] Source: monday.com

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