Why Monday.com Stock Popped Today

Shares of Monday.com (NASDAQ: MNDY) were moving higher today after the cloud software customer-resource management (CRM) company posted better-than-expected results in its second-quarter earnings report. It also raised its guidance for the full year.

As of 2:20 p.m. EDT, the stock was up 11.1% on the news.

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Monday.com keeps growing

Monday's recovery from a sharp post-pandemic slide continued today as it delivered another round of strong revenue growth, and its margins continued to improve.

Revenue jumped 34% in the quarter to $236.1 million, easily beating the consensus at $228.8 million. Net-dollar retention rate was 110%, which showed that existing customers increased their spending by 10% on the platform; growth was more driven by new customers. New customers with more than 10 users increased 15% to 49,936 to 57,203.

On the bottom line, adjusted-operating income more than doubled from $16.6 million to $38.4 million, and adjusted earnings per share (EPS) reached $0.94, up from $0.41, much better than estimates at $0.56. The company also reported its first quarter of generally accepted accounting principles ( GAAP ) profit.

CEO Eliran Glazer said, "These results demonstrate not only our highly effective execution, but the strong demand we continue to see even through a challenging macroeconomic environment."

What's next for Monday

Looking ahead, Monday.com sees better times ahead, raising its revenue forecast to $956 million to $961 million, up 31% to 32% from a year ago and above its previous range of $942 million to $948 million. That was also better than the analyst consensus at $947.8 million.

Given the better-than-expected results and the guidance hike, it's not surprising to see the stock moving higher, especially in what continues to be a difficult macroclimate for cloud stocks .

Jeremy Bowman has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Monday.com. The Motley Fool has a disclosure policy .