TLDR
- Monday.com (MNDY) stock fell 5% to $83.29 in premarket trading Monday, after a 6.3% drop Friday.
- Q4 revenue guidance of $380 million to $382 million came in below the $386 million consensus.
- Q3 adjusted EPS of $2.14 beat the $1.41 estimate, and revenue rose 19% to $377.5 million.
- Adjusted operating margin widened to 24% from 15%, with a record $89.4 million in adjusted operating income.
- AI products reached $36 million in annual recurring revenue.
Monday.com (MNDY) stock fell 5% to $83.29 in premarket trading on Monday. That came after a 6.3% drop on Friday.
Later in the day, TipRanks data showed the stock down about 11%. It is down 39% this year through Friday’s close.
The trigger was a fourth-quarter revenue forecast that landed light. The company guided for $380 million to $382 million, while analysts wanted $386 million.
That range points to growth of roughly 14%. The company grew 19% in the third quarter and 22% in the second.
Profit Climbed Fast
The quarter itself was strong. Adjusted EPS came in at $2.14, well above the $1.41 FactSet estimate.
Revenue rose 19% to $377.5 million, topping the $369 million forecast. Adjusted operating income hit a record $89.4 million, up from $47.5 million a year ago.
The adjusted operating margin widened to 24% from 15%. GAAP operating income came in at $31.2 million.
Remaining performance obligations rose 27% to $946 million. AI products reached $36 million in annual recurring revenue.
AI agents also handled more than 6 million interactions in under two quarters. That is a lot of bot chatter for a work app.
Big Customers Grow, Just Slower
Customers above $100,000 in annual recurring revenue rose 33% to 2,127. That compares with 37% growth in the second quarter.
Customers above $500,000 grew 58%, down from 68%. Net dollar retention slipped to 108% from 109%.
Co-CEOs Roy Mann and Eran Zinman said the move to an AI-first company brought “near-term operational headwinds.” They called it a “fundamental evolution” and said they are “highly confident” in the strategy.
On the earnings call, the company also flagged restructuring, softer demand from smaller customers and currency pressure, per TipRanks.
The most recent analyst rating is Hold, with a $90 price target. Monday.com has a market cap of about $3.72 billion.
