Q2 Earnings Highlights: monday.com (NASDAQ:MNDY) Vs The Rest Of The Productivity Software Stocks
As the craze of earnings season draws to a close, here’s a look back at some of the most exciting (and some less so) results from Q2. Today, we are looking at productivity software stocks, starting with monday.com (NASDAQ:MNDY).
Rising employee costs and the shift to more remote work has increased the ever-present pressure to improve corporate productivity, which in turn has driven rising demand for productivity software that enables remote work, streamline project management and automate business tasks.
The 16 productivity software stocks we track reported a strong Q2. As a group, revenues beat analysts’ consensus estimates by 3.1% while next quarter’s revenue guidance was 0.9% above.
Luckily, productivity software stocks have performed well with share prices up 17.4% on average since the latest earnings results.
monday.com (NASDAQ:MNDY)
With its colorful interface of boards, columns, and automation that replaced the chaos of spreadsheets, monday.com (NASDAQ:MNDY) is a cloud-based work operating system that helps teams manage projects, track tasks, and streamline workflows through customizable interfaces.
monday.com reported revenues of $364.6 million, up 21.9% year on year. This print exceeded analysts’ expectations by 2.6%. Despite the top-line beat, it was still a mixed quarter for the company with a solid beat of analysts’ adjusted operating income estimates but a significant miss of analysts’ billings estimates.
monday.com delivered the weakest guidance update and weakest full-year guidance update among its peers. The company added 287 enterprise customers paying more than $50,000 annually to reach a total of 4,834. Interestingly, the stock is up 2.5% since reporting and currently trades at $95.50.
Is now the time to buy monday.com? Access our full analysis of the earnings results here, it’s free.
Best Q2: SoundHound AI (NASDAQ:SOUN)
Born from the idea that machines should understand human speech as naturally as people do, SoundHound AI (NASDAQ:SOUN) develops voice recognition and conversational intelligence technology that enables businesses to integrate voice assistants into their products and services.
SoundHound AI reported revenues of $61.9 million, up 45% year on year, outperforming analysts’ expectations by 18.1%. The business had an incredible quarter with an impressive beat of analysts’ billings estimates.
SoundHound AI pulled off the biggest analyst estimate beat and fastest revenue growth of the whole group. However, the results were likely priced into the stock as it’s traded sideways since reporting. Shares currently sit at $6.45.
