TEAM - Monday.com Is Blowing Past Its Peers. Is the Stock a Buy?
2023-08-15 12:54:00 ET
Shareholders of workflow management software company Monday.com (NASDAQ: MNDY) got good news Monday morning when the company released quarterly results. Revenue was $176 million, an easy beat of the $170 million management forecast a few months ago and up 42% from the year-ago quarter.
While Monday.com shares remain far off of their ludicrous highs of the cloud stock bubble of 2021, this small company is actually doing quite well these days. As of this writing, the stock is up 20% over the last 12-month stretch and up 35% so far in 2023. Stocks of upstart peers like Asana (NYSE: ASAN) , and incumbents like Atlassian (NASDAQ: TEAM) and Smartsheet (NYSE: SMAR) , have underperformed Monday.com by a wide margin over the past year. Monday.com appears to have a winning formula, but is now the time to buy?
Monday.com has been a hot growth business since its 2021 IPO. It's been able to pick up lots of customers touting its easy-to-use software-building capabilities, which give users the ability to customize the software suite to their needs. Additional features have been coming in fast, including a new database architecture called MondayDB (which opens up new use cases, especially for customers with big and complex workflow problems) and an AI assistant.
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Monday.com Is Blowing Past Its Peers. Is the Stock a Buy?