Monday.com (NASDAQ: MNDY) delivered a strong second-quarter performance, surpassing Wall Street estimates on both earnings and revenue, yet its shares tumbled sharply in Monday’s trading session. The work management software leader reported adjusted earnings of $1.09 per share, significantly higher than the $0.86 analysts had anticipated. Revenue climbed 27% year-over-year to $299 million, beating the consensus forecast of $293.58 million. Despite these impressive results, investors reacted negatively, sending the stock down more than 29% in a single day.

The company demonstrated robust growth across key metrics, including net dollar retention, which held steady at 111%. For larger customers with over 10 users, retention reached an even stronger 115%. Co-founders and co-CEOs Roy Mann and Eran Zinman emphasized increasing demand from enterprise clients and expanding adoption of Monday.com’s product ecosystem. Notably, the number of high-value customers—those contributing over $100,000 in annual recurring revenue (ARR)—surged 46% year-over-year to a record 1,472. Additionally, the company’s CRM product achieved a major milestone, surpassing $100 million in ARR just three years after launch.

Looking ahead, Monday.com provided third-quarter revenue guidance of $311 million to $313 million, aligning with market expectations. For the full year, the company projects revenue between $1.224 billion and $1.229 billion, also in line with analyst estimates. The sharp decline in share price suggests investor concerns over broader market conditions or future growth sustainability, despite the company’s strong fundamentals.