Monday.com (NASDAQ:MNDY) stock gained on Monday after the work-management software company topped quarterly earnings expectations and offered an optimistic outlook.

The company reported a quarterly revenue growth of 24% year-on-year (Y/Y) to $351.27 million, beating the analyst consensus estimate of $339.23 million. 

The company's adjusted quarterly EPS of $1.15 beat the analyst consensus estimate of 93 cents.

Monday.com makes money by selling subscriptions that give customers access to its cloud-based Work OS platform. 

The net dollar retention rate was 110% and 114% for customers with more than 10 users.

The number of paid customers with over $50,000 in annual recurring revenue (ARR) rose 32% Y/Y to 4,547.

The adjusted operating margin remained firm at 14% Y/Y despite an approximately 190-basis-point negative foreign-exchange impact.

In the quarter, Monday.com generated operating cash flow of $104.69 million, down from $111.97 million a year ago.

It generated $102.78 million in adjusted free cash flow, compared to $109.53 million a year ago, and ended the quarter with $997.1 million in cash and equivalents.

Executive Commentary

Monday.com co-founders and co-CEOs Roy Mann and Eran Zinman said the company delivered disciplined execution in the first quarter while continuing to invest aggressively in growth initiatives.

They highlighted the launch of the AI Work Platform and the shift to consumption-based pricing as key strategic moves to align Monday.com's growth with rising customer adoption of AI-driven workflows.

CFO Eliran Glazer said Monday.com exceeded expectations across revenue, margins, and cash flow during the quarter.

He also pointed to growing AI-driven productivity gains within the company, which he said are allowing Monday.com to expand revenue without increasing headcount at the same pace, potentially strengthening long-term operating leverage.

Outlook

Monday.com expects fiscal second-quarter 2026 revenue guidance of $354.00 million-$356.00 million against the analyst consensus estimate of $354.22 million and an adjusted operating margin outlook of 13%-14%.

Monday.com raised 2026 revenue guidance from $1.452 billion-$1.462 billion to $1.466 billion-$1.474 billion, against the analyst consensus estimate of $1.458 billion, and an adjusted operating margin outlook of approximately 13% (compared to the prior outlook of 13%-14%).

Guidance reflects an assumed 100–200 basis points headwind from foreign exchange.

MNDY Price Action: Monday.Com shares were up 4.07% at $75.00 at the time of publication on Monday, according to Benzinga Pro data.

Photo: Shutterstock