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Monday.com MNDY shares have gained 10.4% in the trailing six-month period compared with the Zacks Computer & Technology sector’s return of 14.3% and the Zacks Internet - Software industry’s rise of 30.3%.
MNDY shares have also underperformed its industry peer, BILL Holdings BILL which has gained 80.7% over the trailing six-months.
The underperformance can be attributed to macroeconomic pressure and stiff competition from tech giants like Asana ASAN and Atlassian TEAM. These companies are making strong efforts to offer project and work management solutions, including the application of processes, methods, skills, and knowledge to achieve specific objectives.
MNDY Shares Beat Sector, Industry
Image Source: Zacks Investment Research
Despite the headwinds, MNDY has emerged as a standout performer in the work management software sector. The company is benefiting from strong demand for its work management solutions and expanding enterprise customer growth, positioning it for continued momentum.
Monday.com’s enterprise customer base continues to expand, with a 40% increase in customers generating more than $50,000 in annual recurring revenue (ARR), reaching 2,907 enterprises. Even more impressive is 44% growth in customers with over $100,000 in ARR, now totaling 1,080.
The company also surpassed $1 billion in ARR, marking a major milestone in its growth journey.
MNDY’s Expanding Product Portfolio Aids Growth
Monday.com’s commitment to innovation is evident in its expanding product portfolio. The company’s AI initiatives have shown exceptional adoption, with AI actions increasing more than 250% quarter over quarter.
This growing emphasis on AI was further highlighted in the third quarter of 2024 when MNDY expanded its portfolio with the launch and rapid adoption of monday AI.
The platform introduced no-code AI building blocks, allowing customers to tailor solutions for their specific business needs. This feature has seen significant adoption, with the use of these AI blocks increasing 150% sequentially, reflecting the platform’s growing appeal and strong customer engagement.
The introduction of mondayDB 2.0, designed for scalability, is another key highlight. The new version allows boards with up to 100,000 items and dashboards with up to 0.5 million items, enhancing the platform’s capacity to serve larger and more complex enterprises.
The company continued to enhance monday CRM, its second-largest product. The vision for monday CRM goes beyond sales, aiming to foster collaboration across various revenue teams. Upcoming features, such as email marketing functionality, will allow teams to manage campaigns directly within the CRM, streamlining workflows and adding value to users.