Core Insights - Monday.com reported quarterly earnings of $1.10 per share, exceeding the Zacks Consensus Estimate of $0.70 per share, and showing an increase from $0.61 per share a year ago, resulting in an earnings surprise of 57.14% [1] - The company achieved revenues of $282.25 million for the quarter ended March 2025, surpassing the Zacks Consensus Estimate by 2.39% and up from $216.91 million year-over-year [2] - Monday.com has consistently outperformed consensus EPS and revenue estimates over the last four quarters [2] Financial Performance - The earnings surprise for the previous quarter was 38.46%, with actual earnings of $1.08 per share compared to an expected $0.78 [1] - The current consensus EPS estimate for the upcoming quarter is $0.78, with projected revenues of $291.81 million, and for the current fiscal year, the EPS estimate is $3.32 on revenues of $1.21 billion [7] Stock Performance - Monday.com shares have increased approximately 18.2% since the beginning of the year, contrasting with a decline of -3.8% in the S&P 500 [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating expected performance in line with the market in the near future [6] Industry Context - The Internet - Software industry, to which Monday.com belongs, is currently ranked in the top 39% of over 250 Zacks industries, suggesting a favorable outlook compared to lower-ranked industries [8] - Another company in the same industry, Rubrik, Inc., is expected to report a quarterly loss of $0.32 per share, reflecting a year-over-year change of +79.8%, with revenues projected at $260.23 million, up 38.9% from the previous year [9]

Q1 FY25 Earnings Safe harbor This press release contains "forward-looking statements" within the meaning of the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995, including but not limited to, statements regarding our financial outlook and market positioning. These forward-looking statements are made as of the date they were first issued and were based on current expectations, estimates, forecasts and projections as well as the beliefs and assumptions of management. Words such ...

monday.com Ltd. MNDY will release earnings results for the first quarter, before the opening bell on Monday, May 12. Analysts expect the Tel Aviv, Israel-based company to report quarterly earnings at 70 cents per share, up from 61 cents per share in the year-ago period. monday.com projects to report quarterly revenue at $275.96 million, compared to $216.91 million a year earlier, according to data from Benzinga Pro. On Feb. 10, Monday.com reported fiscal fourth-quarter revenue growth of 32% year-on-year to ...

Company Overview - Monday.com (MNDY) is expected to report a year-over-year increase in earnings, with a projected EPS of $0.70, reflecting a change of +14.8% [3] - Revenues for the upcoming quarter are anticipated to be $275.66 million, which represents a growth of 27.1% compared to the same quarter last year [3] Earnings Expectations - The consensus EPS estimate has been revised 16.67% higher in the last 30 days, indicating a positive reassessment by analysts [4] - The Most Accurate Estimate for Monday.com is higher than the Zacks Consensus Estimate, resulting in an Earnings ESP of +0.32%, suggesting a likelihood of beating the consensus EPS estimate [10][11] Historical Performance - In the last reported quarter, Monday.com exceeded the expected EPS of $0.78 by delivering earnings of $1.08, achieving a surprise of +38.46% [12] - The company has successfully beaten consensus EPS estimates in each of the last four quarters [13] Industry Context - In the Zacks Internet - Software industry, Affirm Holdings (AFRM) is also expected to report a loss of $0.08 per share, with a year-over-year change of +81.4% and projected revenues of $783.11 million, up 35.9% from the previous year [17] - Affirm Holdings has an Earnings ESP of 63.27% and a Zacks Rank of 1 (Strong Buy), indicating a strong likelihood of beating the consensus EPS estimate [18]

I recently joined The REIT Forum and if you are looking for more investment ideas like this one, get them exclusively at The REIT Forum with access to our subscriber only portfolios.When I last wrote about monday.com (NASDAQ: MNDY ) , I had reiterated my “buy” rating with a price target of $288, as the company continued to demonstrate momentum in gaining market share in the enterprise segment, whileAmrita runs a boutique family office fund in beautiful Vancouver, where she leads the investment strategy for ...

Core Viewpoint - monday.com (MNDY) has experienced a significant decline in share price, losing 20.9% over the past six months, which is worse than the broader Zacks Computer and Technology sector and the Zacks Internet - Software industry [1] Group 1: Financial Performance and Outlook - The company's cautious outlook for fiscal 2025 indicates potential headwinds, with expected revenue growth moderating to 24-26%, down from a 33% rise in 2024 [3] - A projected non-GAAP operating margin of 11-12% for 2025 reflects a decline from 14% in the prior year, attributed to increased investments in sales infrastructure [4] - The Zacks Consensus Estimate for 2025 revenues is $1.21 billion, indicating a year-over-year increase of 24.81% [4] - The consensus mark for 2025 earnings is $3.30 per share, reflecting a year-over-year decline of 5.71% [5] Group 2: Strategic Initiatives - monday.com is focusing on AI-driven product innovation, with a strategy centered around AI Blocks, Product Power-ups, and a Digital Workforce to enhance automation and scalability [6] - The introduction of AI Blocks allows users to integrate AI capabilities into workflows, with customers performing approximately 10 million AI actions by the end of 2024 [7] - The Digital Workforce includes AI-powered agents for continuous operation, with the first agent, monday Expert, released in March 2025 [8] - The company has launched monday service, an Enterprise Service Management platform that has resolved over 215,000 tickets, improving efficiency in enterprise IT service [9] Group 3: Market Position and Growth Potential - In 2024, monday.com completed mondayDB 2.0, enhancing its platform's ability to support larger use cases, and grew its largest customer seat count to 80,000 [10] - The company aims to build on its momentum in 2025 by expanding reach, enhancing product capabilities, and leading through innovation in AI and workflow automation [11] - Despite the cautious outlook for 2025, monday.com is well-positioned for long-term success due to its strong momentum in AI-led innovation and growing enterprise adoption [12]

Core Viewpoint - Analyst recommendations play a significant role in influencing stock prices, but their reliability is questionable due to potential biases from brokerage firms [1][10]. Group 1: Analyst Recommendations - Monday.com (MNDY) has an average brokerage recommendation (ABR) of 1.26, indicating a consensus between Strong Buy and Buy, with 82.6% of recommendations being Strong Buy [2]. - The ABR is based on recommendations from 23 brokerage firms, with 19 Strong Buy and 2 Buy [2]. - Despite the positive ABR, relying solely on this information for investment decisions may not be wise, as studies show limited success in using brokerage recommendations for stock selection [5]. Group 2: Limitations of Brokerage Recommendations - Brokerage analysts often exhibit a strong positive bias due to vested interests, leading to a disproportionate number of Strong Buy recommendations compared to Strong Sell [6][10]. - The best use of brokerage recommendations may be to validate independent research rather than as a primary decision-making tool [7]. Group 3: Zacks Rank vs. ABR - Zacks Rank, a proprietary stock rating tool, categorizes stocks from Strong Buy to Strong Sell and is based on earnings estimate revisions, which correlate strongly with near-term stock price movements [8][11]. - Unlike ABR, Zacks Rank is timely and reflects the latest earnings estimates, making it a more reliable indicator for predicting future stock prices [12]. - For Monday.com, the Zacks Consensus Estimate for the current year remains unchanged at $3.29, leading to a Zacks Rank of 3 (Hold) [13][14].

Company Performance - Monday.com (MNDY) closed at $221.01, reflecting a +1.49% change from the previous trading day's closing, outperforming the S&P 500's loss of 0.23% [1] - The stock has dropped by 13.67% in the past month, which is better than the Computer and Technology sector's loss of 16.18% but worse than the S&P 500's loss of 12.13% [1] Earnings Expectations - Analysts expect Monday.com to post earnings of $0.68 per share, indicating year-over-year growth of 11.48% [2] - The consensus estimate projects revenue of $275.04 million, reflecting a 26.8% rise from the same quarter last year [2] Full Year Projections - For the full year, earnings are projected at $3.27 per share, representing a -6.57% change from the prior year, while revenue is expected to be $1.22 billion, reflecting a +25.01% change [3] Analyst Estimates - Recent changes in analyst estimates for Monday.com are important as they reflect evolving short-term business trends, with upward revisions indicating analysts' positivity towards the company's operations [4] Valuation Metrics - Monday.com has a Forward P/E ratio of 66.62, significantly higher than the industry average of 23.71, suggesting it is trading at a premium [7] - The company holds a PEG ratio of 1.63, compared to the industry average PEG ratio of 1.77 [7] Industry Context - The Internet - Software industry, part of the Computer and Technology sector, holds a Zacks Industry Rank of 82, placing it in the top 34% of all industries [8]

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 ...