$Monday.com Ltd.(MNDY)$’s second-quarter report showed that artificial-intelligence products are becoming a measurable source of new business. Yet the company’s growth is still slowing, and a cautious third-quarter forecast suggests that restructuring and AI monetisation will take time to offset weaker billings and a more difficult software-spending environment.
monday.com reported before the August 10 market open for the quarter ended June 30. Revenue increased 22% year over year to $364.6 million, while non-GAAP operating income rose to a record $61.1 million from $45.1 million. GAAP operating loss narrowed to $1.5 million from $11.6 million. monday.com’s official second-quarter release provides the financial statements and customer metrics.
The bullish thesis is that monday.com is expanding from team-level project management into a broader enterprise platform covering work management, customer relationships, software development and service operations. Customers producing more than $100,000 of annual recurring revenue increased 37% to 2,019, while those above $500,000 rose 68% to 114. Remaining performance obligations grew 34%, giving the company greater contracted-revenue visibility.
AI products also moved beyond experimentation. Their annual recurring revenue doubled sequentially and represented 17% of net new ARR. Consumption-based pricing may allow monday.com to earn revenue when AI agents complete work even if customers do not add traditional user seats.
The bearish evidence is deceleration. Billings increased only 13%, and adjusted free cash flow declined to $52.3 million from $64.1 million. Management forecast third-quarter revenue of $368–$370 million, representing 16%–17% growth and below the approximately $372.8 million expected. The company also reduced its workforce by about 20% in July. Cost discipline can improve margins, but rapid restructuring can disrupt sales and product execution.
MNDY Daily Chart
monday.com fell 4.5% to $88.62 on August 10 after an unusually wide $80.54–$98.26 range. The recovery from the low shows buyers appeared near $80–$82, while the failure near $98 creates resistance around $95–$98. The volatile reversal is inconclusive; billings and customer retention will provide stronger evidence than one session.
The evidence leans neutral. Enterprise adoption, contracted revenue and AI monetisation are constructive, but weaker billings, slower guidance and restructuring risk limit confidence. The view would become bullish if AI revenue keeps expanding while total growth stabilises; it would turn bearish if large-customer additions slow, retention falls or the company reduces full-year guidance. This is personal opinion for education and is not financial advice.
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Disclaimer: This article is for informational and educational purposes only and does not constitute financial, investment, or trading advice. The views expressed are personal opinions based on publicly available information and are subject to change without notice. Investors should conduct their own research and consider their financial situation, risk tolerance, and investment objectives before making any investment decisions. I do not guarantee the accuracy or completeness of the information presented.
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