• First-quarter revenue came in at $351.3 million, and adjusted earnings per share were $1.15, both ahead of estimates.
• For the full year, monday.com forecasts revenue between $1.466 billion and $1.474 billion, implying a 19% to 20% growth.
• Second quarter revenue is expected to be between $354 million and $356 million.

Shares of monday.com (MNDY) surged in premarket trading on Monday after the work process software solutions provider reported upbeat first-quarter results along with a stellar forecast.

At the time of writing, MNDY stock was up more than 26% and was on track to hit a three-month high.

AI Fuels Growth For MNDY

The company said it has seen artificial intelligence contribute significantly to growth, to the point that it fully pivoted to become an AI-native platform.

During the quarter, monday.com launched the AI work platform with AI agents, announced a new seats-plus-credits pricing model, and also bought AI voice agent company OneAI.

“Perhaps most encouragingly, the AI productivity gains we are seeing inside our own organization are demonstrating that we can grow revenue without growing headcount in lockstep, a dynamic we believe will be a meaningful driver of operating leverage over time,” said CFO Eliran Glazer.

MNDY Q1 Earnings Fineprint

In the first quarter (Q1), revenue increased 24% to $351.3 million, beating the estimate of $339.1 million polled by Fiscal AI. The company’s adjusted earnings per share (EPS) were $1.15, ahead of the $0.93 per share estimate.

For the second quarter (Q2), the company guided revenue between $354 million and $356 million, implying year-over-year growth of 18% to 19%, and above the $354.2 million estimate.

For the full year, monday.com forecasts revenue between $1.466 billion and $1.474 billion, representing year-over-year growth of 19% to 20%, and ahead of the $1.458 billion estimate.

What Retail Traders Think Of MNDY Stock

On Stocktwits, retail sentiment about MNDY remained ‘bullish’ amid a near fourfold spike in message volumes over the last 24 hours.

One user on the platform wrote that AI product adoption and margin improvement are adding to the bullish momentum in MNDY.

MNDY stock has lost more than half its value so far this year, and nearly three-fourths over the past 12 months, underperforming the S&P 500.

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