Monday.com Gains Ground as AI Product Adoption Drives Revenue and Profit Growth
Monday.com Ltd. (MNDY) is seeing increased demand for its artificial intelligence tools, with annual recurring revenue from AI products doubling sequentially in the second quarter. The company's AI offerings represented 17% of total net new annual recurring revenue during the period, led by tools such as Monday Vibe, an application builder that rapidly reached $1 million in annual recurring revenue, and autonomous AI agents designed to automate business operations.
The expanding AI capabilities are helping the work management software maker attract larger enterprise clients. In the second quarter, customers generating over $100,000 in annual recurring revenue grew 37% year over year to 2,019, while those spending over $500,000 increased 68% to 114. Second-quarter revenue reached $364.62 million, up 22% from a year earlier, alongside a 35% gain in non-GAAP operating income to $61.1 million.
Looking ahead, annual revenue is projected to reach $1.47 billion in fiscal year 2026 and $1.69 billion in fiscal year 2027, with annual earnings per share expected to reach $5.58 and $6.63 respectively. Investors will be tracking how effectively the platform scales its AI monetization when the company reports its third-quarter financial results next month.
Key points
- Monday.com's AI product ARR doubled sequentially in Q2, representing 17% of total net new ARR.
- Second-quarter revenue rose 22% year over year to $364.62 million, with non-GAAP operating income up 35% to $61.1 million.
- Enterprise clients spending over $500,000 annually jumped 68% year over year to 114 customers.
- Annual revenue is projected to reach $1.47 billion in FY26 and $1.69 billion in FY27.
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How much did Monday.com revenue grow in Q2?
Monday.com second-quarter revenue grew 22% year over year to $364.62 million, while non-GAAP operating income increased 35% to $61.1 million.
What are Monday.com's projected earnings for FY26 and FY27?
Earnings are projected to reach $5.58 per share in fiscal year 2026 and $6.63 per share in fiscal year 2027, with revenue expected to hit $1.47 billion and $1.69 billion respectively.
How fast is Monday.com expanding its AI revenue?
Annual recurring revenue from AI products doubled sequentially in Q2, accounting for 17% of total net new annual recurring revenue.