Monday.com Earnings: Continued Enterprise Momentum and Further Profitability Upside

We raise our fair value estimate for no-moat Monday.com to $230 per share, from $220, following the release of strong second-quarter results that surpassed our above-guidance revenue and profitability forecasts. Monday continues to execute well on a land and expand strategy, with robust net and gross retention, together indicating healthy demand for the nascent work management software niche. After an impressive first-half performance, we have raised our long-term revenue per customer assumptions and assume more rapid profitability improvement on scale-based operating leverage and internal efficiencies. At the time of writing, Monday shares rallied 12% in intraday trading Aug. 12 but continue to screen as fairly valued on a risk-adjusted basis.