monday.com(MNDY) - 2022 Q2 - Quarterly Report

Financial Performance - Second quarter revenue reached $123.7 million, representing a 75% year-over-year growth[5] - GAAP operating loss was $46.2 million, an increase from a loss of $27.5 million in the same quarter of 2021, with a GAAP operating margin of negative 37%[5] - Non-GAAP operating loss was $15.4 million, compared to a loss of $9.9 million in Q2 2021, with a non-GAAP operating margin of negative 12%[5] - Net loss for the three months ended June 30, 2022, was $45.671 million, compared to a net loss of $28.891 million for the same period in 2021, representing an increase in losses of 58%[25] - GAAP net loss for Q2 2022 was $45,671,000, compared to a loss of $28,891,000 in Q2 2021, representing a 58% increase in losses year-over-year[28] - Non-GAAP net loss for Q2 2022 was $14,917,000, compared to a loss of $11,333,000 in Q2 2021, indicating a 32% increase in losses year-over-year[28] - The company reported a GAAP net loss of $112,349,000 for the six months ended June 30, 2022, compared to $67,843,000 for the same period in 2021, representing a 65% increase in losses[28] Customer Growth - The number of customers with more than $50,000 in annual recurring revenue (ARR) increased by 147% year-over-year, totaling 1,160 customers[5] - Net dollar retention rate exceeded 125%, with rates over 135% for customers with more than 10 users and over 150% for those with more than $50,000 in ARR[5] - Adoption of new monday Work OS products surpassed 1,000 paying accounts within the first two months of their release[5] Revenue Projections - The company expects total revenue for Q3 2022 to be between $130 million and $131 million, reflecting a year-over-year growth of 57% to 58%[14] - For the full year 2022, total revenue is projected to be between $498 million and $502 million, indicating a year-over-year growth of 62% to 63%[14] Asset and Liability Management - Total assets increased to $959.694 million as of June 30, 2022, compared to $933.192 million in December 2021, reflecting a growth of approximately 2.7%[24] - Total liabilities rose to $317.664 million as of June 30, 2022, compared to $229.797 million in December 2021, an increase of 38.2%[24] - Total current liabilities increased to $267.922 million as of June 30, 2022, from $228.185 million in December 2021, reflecting a rise of 17.4%[24] Profitability and Cash Flow - GAAP gross profit for the three months ended June 30, 2022, was $106.988 million, up from $61.507 million in 2021, indicating a year-over-year growth of 74%[27] - Non-GAAP gross profit for the same period was $109.903 million, compared to $63.340 million in 2021, reflecting a growth of 73.5%[27] - Adjusted free cash flow for Q2 2022 was $(19,295,000), significantly worse than $(1,480,000) in Q2 2021, reflecting increased cash outflows[29] - Net cash used in operating activities for Q2 2022 was $(14,061,000), compared to $(355,000) in Q2 2021, indicating a substantial increase in cash burn[29] Investment and Expenses - Share-based compensation for the three months ended June 30, 2022, was $30.822 million, up from $17.558 million in 2021, representing a growth of 75.5%[27] - Capitalized software development costs for Q2 2022 were $684,000, slightly down from $718,000 in Q2 2021[29] - Purchase of property and equipment for Q2 2022 was $4,550,000, compared to $1,358,000 in Q2 2021, indicating increased investment in physical assets[29] Strategic Focus - The strategic focus remains on balancing healthy investment in the business with improving efficiency and profitability[2] - The company noted some softness in demand in Europe at the end of Q2 and is closely monitoring the demand environment[7]