monday.com (MNDY) shares have lost 20.9% over the past six months, underperforming the broader Zacks Computer and Technology sector’s decline of 14.9% and the Zacks Internet - Software industry’s fall of 7.2%.MNDY has also underperformed its industry peers BlackBerry (BB) , Confluent (CFLT) and Affirm (AFRM) .While BlackBerry shares have gained 19.2%, Confluent and Affirm have declined 7.1% and 7.6%, respectively, during the same period.The underperformance is largely attributed to a cautious outlook for 20 ...

When deciding whether to buy, sell, or hold a stock, investors often rely on analyst recommendations. Media reports about rating changes by these brokerage-firm-employed (or sell-side) analysts often influence a stock's price, but are they really important?Let's take a look at what these Wall Street heavyweights have to say about Monday.com (MNDY) before we discuss the reliability of brokerage recommendations and how to use them to your advantage.Monday.com currently has an average brokerage recommendation ...

The most recent trading session ended with Monday.com (MNDY) standing at $221.01, reflecting a +1.49% shift from the previouse trading day's closing. This change outpaced the S&P 500's 0.23% loss on the day. At the same time, the Dow lost 0.91%, and the tech-heavy Nasdaq gained 0.1%.The project management software developer's stock has dropped by 13.67% in the past month, exceeding the Computer and Technology sector's loss of 16.18% and lagging the S&P 500's loss of 12.13%.The investment community will be p ...

Core Viewpoint - monday.com (MNDY) has underperformed the Zacks Internet – Software industry, with a 13.1% gain over the past 12 months compared to the industry's 18.5% [1] Group 1: Company Performance and Challenges - The company's underperformance is attributed to macroeconomic uncertainty affecting enterprise spending, elongating sales cycles, and high customer acquisition costs, leading to revenue unpredictability [2] - Fluctuations in attrition rates due to customer dissatisfaction and economic downturns could further pressure revenue growth in upcoming quarters [2] - Despite challenges, monday.com achieved strategic expansion into the enterprise market, growing its seat count to 80,000 and adding a record number of net new accounts in the CRM and Dev segments [4] Group 2: Competitive Landscape - monday.com faces long-term competition from Asana, HubSpot, and Freshworks, which offer similar platforms [3] - To compete effectively, monday.com must focus on introducing new features and increasing product acceptance [3] - Shares of competitors Asana, HubSpot, and Freshworks have seen declines of 4.6%, 5.4%, and 16.9% respectively over the past 12 months [3] Group 3: Financial Outlook - The company expects revenues in the range of $274.5-$276 million for Q1 2025, indicating a year-over-year growth of 26-27% [5] - The Zacks Consensus Estimate for MNDY's Q1 2025 revenues is $277.66 million, suggesting a 28.01% year-over-year increase [5] - The consensus estimate for earnings is 68 cents per share, reflecting an 11.48% year-over-year growth [6] Group 4: Strategic Initiatives and Future Prospects - monday.com reached $1 billion in annual recurring revenues in 2024, highlighting the strength of its Work OS platform [7] - The company completed the latest phase of mondayDB, enhancing the platform's scalability for larger use cases [7] - AI-driven innovations are expected to drive new features and integrations, positioning monday.com for long-term growth as digital work management solutions gain traction [7] Group 5: Investment Considerations - monday.com currently holds a Zacks Rank 3 (Hold), suggesting that investors may want to wait for a more favorable entry point in 2025 [8]

monday.com Ltd. (NASDAQ: MNDY ) (Monday for short) has been one of the cleanest software stories available to investors over the last three years.Whether you're just getting started or are an analyst at a hedge fund, Louis has served folks like yourself throughout his career in equity research and investing. Learn moreAnalyst’s Disclosure: I/we have a beneficial long position in the shares of MNDY, SNOW either through stock ownership, options, or other derivatives. I wrote this article myself, and it expres ...

Customer Base and Market Presence - As of December 31, 2024, the company served nearly 245,000 customers across over 200 industries in more than 200 countries and territories[32]. - The number of paying customers increased to nearly 245,000 as of December 31, 2024, up from over 225,000 as of December 31, 2023[209]. - The number of enterprise customers grew by 39% from 2,295 as of December 31, 2023, to 3,201 as of December 31, 2024[212]. - Customers with more than $100,000 in ARR grew by 45% during the 12 months ending December 31, 2024, from 833 to 1,207[213]. - The company aims to increase its global presence by investing in local advertising channels and partnerships[46]. - The company has 272 channel partners across 50 countries, enhancing its market reach and providing professional services[110]. Financial Performance - Revenue for the year ended December 31, 2024, was $972.0 million, representing a 33% increase from $729.7 million in 2023 and a 68% increase from $519.0 million in 2022[47]. - Net income for the year ended December 31, 2024, was $32.4 million, a significant improvement from a net loss of $1.9 million in 2023[211]. - Free cash flow for the year ended December 31, 2024, was $295.8 million, up from $204.9 million in 2023 and $8.1 million in 2022[47]. - Annual Recurring Revenue (ARR) from enterprise customers increased by 47% from December 31, 2023, to December 31, 2024[212]. - The company does not expect to pay dividends for the foreseeable future, indicating a focus on reinvestment[29]. Product Development and Innovation - The company has begun incorporating AI capabilities throughout its platform to enhance functionality and user experience[31]. - The company has a history of technological innovation, regularly updating its platform to maintain competitiveness[37]. - The platform is designed as a no-code and low-code framework, allowing users to build applications and management tools tailored to their needs[31]. - The company plans to continue investing in research and development to enhance its platform and introduce new use cases and enterprise-grade features[38]. - The company released mondayDB 2.0 in 2024, which supports boards with up to 10x more items and 25x more dashboards, enhancing performance and scalability[95]. - The newly released Guardian add-on enhances data protection and governance, featuring tenant-level encryption and multiple SSO capabilities[131]. Customer Engagement and Support - The company emphasizes the importance of customer support and retention strategies to grow its user base[26]. - The customer success teams focus on upselling and driving value for customers, with a strategy that includes more face-to-face interactions in 2024 to strengthen relationships[115]. - The company employs a multi-product marketing strategy to expand brand awareness and lead generation, targeting potential customers at both team and managerial levels[117][118]. Strategic Focus and Growth - The company aims to drive growth by evolving its Work OS platform and regularly releasing new building blocks and updates for performance and scale[37]. - The company emphasizes growing its mid-market customer base while investing in up-market growth strategies[99]. - The self-serve funnel will be scaled alongside a sales-led strategy, with full implementation expected in 2025[43]. - The company is focused on expanding its partner ecosystem to deepen product adoption and scale[42]. - The sales strategy includes increasing geographical footprint and face-to-face interactions to boost customer engagement and adoption[108]. Corporate Social Responsibility and Culture - The company has launched a philanthropic initiative, the monday.com Foundation, to support communities through technology and financial resources[151]. - The Tech School program, initiated in 2023, aims to empower youth from underserved communities with tech skills to close the digital gap[155]. - The company emphasizes a culture of inclusivity and diversity, with nine Employee Resource Groups (ERGs) aimed at enhancing employee engagement and development[140][141]. Intellectual Property and Workforce - As of December 31, 2024, the company holds 106 granted U.S. patents and has 31 U.S. patent-pending applications, indicating a strong focus on intellectual property[122]. - The workforce consists of 2,508 employees globally, with the largest regional presence in Israel (1,494 employees) and a significant number in the Americas (625 employees)[138][139]. Risks and Challenges - The company is subject to various risks, including foreign currency exchange rate fluctuations and competition in the software market[24].

Core Viewpoint - Monday.com (MNDY) has experienced a significant decline in stock performance, returning -28.6% over the past month, compared to the S&P 500's -7.3% and the Zacks Internet - Software industry's -17.8% [2] Earnings Estimate Revisions - The current quarter's earnings estimate for Monday.com is $0.68 per share, reflecting an increase of +11.5% year-over-year, with the consensus estimate remaining unchanged over the last 30 days [5] - The consensus earnings estimate for the current fiscal year is $3.33, indicating a year-over-year decline of -4.9%, with a significant change of -46.2% over the last month [5] - For the next fiscal year, the consensus earnings estimate is $4.31, showing a year-over-year increase of +29.4%, with a slight change of +2.4% over the past month [6] Revenue Growth Forecast - The consensus sales estimate for the current quarter is $277.66 million, indicating a year-over-year growth of +28% [9] - The sales estimates for the current and next fiscal years are $1.22 billion and $1.51 billion, respectively, reflecting changes of +25% and +24% [9] Last Reported Results and Surprise History - In the last reported quarter, Monday.com achieved revenues of $267.98 million, representing a year-over-year increase of +32.3%, with an EPS of $1.08 compared to $0.65 a year ago [10] - The reported revenues exceeded the Zacks Consensus Estimate of $261.14 million by +2.62%, and the EPS surprise was +38.46% [11] - The company has consistently beaten consensus EPS and revenue estimates in the trailing four quarters [11] Valuation - Monday.com is graded F on the Zacks Value Style Score, indicating it is trading at a premium compared to its peers [15] - Valuation multiples such as price-to-earnings (P/E), price-to-sales (P/S), and price-to-cash flow (P/CF) are essential for assessing whether the stock is overvalued, fairly valued, or undervalued [13][14] Conclusion - The Zacks Rank 3 suggests that Monday.com may perform in line with the broader market in the near term, despite the current market buzz [16]

Core Viewpoint - monday.com (MNDY) reported strong financial results for the fourth quarter of 2024, with significant growth in earnings and revenues, indicating robust business performance and customer retention. Financial Performance - MNDY's non-GAAP earnings per share for Q4 2024 were $1.08, exceeding the Zacks Consensus Estimate by 38.46% and increasing 66.1% year-over-year [1] - The company's net revenues reached $268 million, a 32% year-over-year increase, and also surpassed the Zacks Consensus Estimate by 2.62% [2] Customer Metrics - In Q4 2024, MNDY had 1,207 customers with an annual run rate (ARR) of $100,000 or more, marking a 45% year-over-year increase [3] - The net dollar retention rate for these customers was 116%, indicating strong customer engagement and product adoption [4] - The total number of paid customers with more than 10 users rose to 59,214, a 10% increase from the previous year [3] Operating Expenses - MNDY's adjusted gross margin decreased by 100 basis points year-over-year to 89% [5] - Research and development expenses increased by 44.4% year-over-year to $48 million, representing 17.9% of revenues [5] - Sales and marketing expenses rose 16.2% year-over-year to $127.8 million, but as a percentage of revenues, they decreased by 660 basis points to 47.7% [5] Income and Cash Flow - The company reported a non-GAAP operating income of $40.3 million, up from $21.2 million in the same quarter last year [6] - As of December 31, 2024, MNDY had cash and equivalents totaling $1.41 billion, an increase from $1.34 billion as of September 30, 2024 [7] - Operating cash flow for the quarter was $76.7 million, down from $86.6 million in the previous quarter, while free cash flow was $72.7 million compared to $82.4 million previously [7] Guidance - For Q1 2025, MNDY expects revenues between $274 million and $276 million, with non-GAAP operating income projected between $25 million and $27 million [8] - For the full year 2025, the company anticipates revenues between $1,208 million and $1,221 million, with non-GAAP operating income expected in the range of $134 million to $142 million [8]

Group 1 - Michael Wiggins De Oliveira is an inflection investor, focusing on buying undervalued companies at pivotal moments when their business narratives are shifting towards increased profitability [1] - The investment strategy emphasizes technology and the Great Energy Transition, including uranium, with a concentrated portfolio of approximately 15 to 20 stocks and an average holding period of 18 months [1] - Michael has over 10 years of experience in analyzing companies, particularly in the tech and energy sectors, and has built a following of over 40,000 on Seeking Alpha [2] Group 2 - Michael leads the investing group Deep Value Returns, which offers insights through a concentrated portfolio of value stocks, timely updates on stock picks, and a weekly webinar for live advice [2] - The Deep Value Returns group provides support for both new and experienced investors, fostering an active and vibrant community accessible via chat [2]

Core Insights - Monday.com shares surged 35.2% following a strong earnings report, indicating positive market reaction to the company's financial performance [1] Financial Performance - Q4 revenues increased by 32% year over year, reaching $268 million, while adjusted earnings per diluted share rose from $0.65 to $1.08, surpassing Street's consensus estimates of $0.79 per share [2] - Adjusted operating margins improved from 10% to 15%, reflecting enhanced profitability [2] - Free cash flows reached $72.7 million, exceeding the previous year's figure by more than 31% [4] Customer Growth - The company added approximately 20,000 customers in Q4, bringing the total customer count to 245,000 [3] Retention and Expansion - Net dollar retention stood at 112%, indicating that average contract renewals were 12% more lucrative than expiring agreements [4] Technological Advancements - Monday.com is integrating artificial intelligence functions into its cloud-based services, with the AI-based customer service solution "monday service" showing strong cross-selling activity [5] Stock Valuation - The stock is trading about 11% below its all-time highs, established before the inflation crisis in 2021, but is considered expensive at 97 times trailing earnings and 17 times sales [6]