Core Insights - Monday.com Ltd (NASDAQ: MDNY) opened nearly 20% down on Monday morning after posting a better-than-expected Q3 but offering disappointing guidance for its current financial quarter [1] Financial Performance - The company reported a better-than-expected Q3 performance, indicating strong operational results [1] - Despite the positive Q3 results, the guidance for the current financial quarter was disappointing, leading to a significant drop in stock price [1]

Core Insights - monday.com Ltd. (MNDY) released its Q3 earnings results, leading to a significant decline in its stock price immediately after the announcement [1] Financial Performance - The stock experienced a notable drop, with reports indicating it was down at one point following the earnings release [1]

Core Insights - monday.com Ltd. (MNDY) released its Q3 earnings results before the market opened, leading to a significant decline in its stock price immediately after the announcement [1]. Financial Performance - The stock experienced a sharp drop, with reports indicating it was down at one point following the earnings release [1]. Market Reaction - The immediate market reaction to the earnings report was negative, suggesting investor disappointment or concern regarding the company's performance [1].

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Financial Data and Key Metrics Changes - Total revenue for Q3 2025 was $317 million, representing a 26% increase year-over-year [9] - Non-GAAP operating income reached a record $47.5 million, up from $32.2 million in Q3 2024, with an operating margin of 15% [10] - Net income was a record $61.9 million, compared to $45 million in Q3 2024, with diluted net income per share at $1.16 [10] - Gross margin for Q3 was 90%, with expectations for medium to long-term gross margin in the high 80s range [9][10] - Adjusted free cash flow for Q3 was $92.3 million, with an adjusted free cash flow margin of 29% [11] Business Line Data and Key Metrics Changes - New products accounted for over 10% of total ARR, surpassing the 2025 goal ahead of schedule [6] - The new AI-powered Monday Campaigns product saw rapid adoption since its launch in September [7] - Monday Vibe has led to the creation of over 60,000 apps, indicating strong customer engagement [7] Market Data and Key Metrics Changes - The company reported robust net additions of over 100,000 paying customers, totaling over 500,000 [4] - The overall net dollar retention (NDR) was 111% in Q3, with expectations to remain stable for fiscal year 2025 [9] Company Strategy and Development Direction - The company is focused on transitioning to a multi-product and AI-powered platform, aiming for a revenue target of $1.8 billion by FY2027 [4][5] - Investments are being rebalanced towards mid-funnel channels to target larger opportunities, despite longer sales cycles [6] - The introduction of product bundles aims to provide a unified experience and accelerate cross-sell momentum [6][39] Management's Comments on Operating Environment and Future Outlook - Management noted healthy demand across all customer segments, particularly for AI features and products [18] - The company is optimistic about the future, citing strong customer engagement and a healthy pipeline heading into 2026 [5][20] - There is confidence in achieving the $1.8 billion revenue target for FY2027, supported by trends in customer expansion and product adoption [75] Other Important Information - The company ended Q3 with $1.53 billion in cash and cash equivalents, down from $1.59 billion at the end of Q2 [11] - Employee headcount increased to 3,018, with expectations for a 30% growth in fiscal year 2025 [10] Q&A Session Summary Question: Customer spending priorities for 2026 - Management observed a transition in customer demand across all segments, with increased interest in AI features and products [17] Question: Impact of go-to-market transition on results - The transition towards larger deals is yielding higher quality pipelines, although it comes with longer sales cycles [19] Question: Dynamics of deferred revenue - Management clarified that deferred revenue is not a perfect measurement due to cash basis accounting, and RPO is a better metric for future growth visibility [26] Question: Guidance for 2026 - Initial expectations for fiscal year 2026 will be provided in the next quarter, with confidence in achieving the $1.8 billion target by FY2027 [27][75] Question: Investment focus for 2026 - The company plans to moderate headcount growth and focus investments on sales, product, and R&D [34] Question: Adoption of AI products - Early traction has been noted for AI offerings, with significant customer engagement and use cases emerging [56][59] Question: Performance marketing channel dynamics - Management reported stabilization in new sign-ups and top-of-funnel activity, with a shift towards higher ROI channels [65] Question: RPO metric adjustments - Adjustments to the RPO metric were made for consistency and accuracy following auditor reviews [86]

Core Insights - Monday.com (MNDY) reported quarterly earnings of $1.16 per share, exceeding the Zacks Consensus Estimate of $0.89 per share, and up from $0.85 per share a year ago, representing an earnings surprise of +30.34% [1] - The company achieved revenues of $316.86 million for the quarter ended September 2025, surpassing the Zacks Consensus Estimate by 1.55% and increasing from $251 million year-over-year [2] - The stock has underperformed the market, losing about 19.5% since the beginning of the year compared to the S&P 500's gain of 14.4% [3] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $0.88 on revenues of $333.24 million, and for the current fiscal year, it is $3.97 on revenues of $1.23 billion [7] - The estimate revisions trend for Monday.com was favorable ahead of the earnings release, resulting in a Zacks Rank 2 (Buy) for the stock, indicating expected outperformance in the near future [6] Industry Context - The Internet - Software industry, to which Monday.com belongs, is currently ranked in the top 28% of over 250 Zacks industries, suggesting a favorable outlook for stocks within this sector [8] - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can be tracked by investors [5]

Financial Performance - Revenue for Q3 FY25 reached $317 million, representing a 26% year-over-year growth[5] - The company's adjusted free cash flow was $92 million, which is 29% of the revenue[5] - Gross margin stands at 90%[5] - Remaining performance obligations (RPO) reached $747 million in Q3 FY25[36] Customer Growth and Retention - Customers with ARR (Annual Recurring Revenue) exceeding $50,000 experienced a 37% year-over-year increase, totaling 3,993[5] - Net dollar retention rate for customers with ARR over $50,000 is 117%[5] - Total customer base has grown at a CAGR of 22% from FY19 to FY24[17] Customer Segmentation - Customers with $50k+ ARR contribute 40% of the total ARR[29] - Customers with $100k+ ARR contribute 27% of the total ARR[29] - Customers with $500k+ ARR contribute 6% of the total ARR[29] Geographical Revenue Distribution - North America accounts for 54% of the company's revenue[23] - Europe contributes 27% to the company's revenue[23] - MEA (Middle East & Africa) accounts for 5% of the company's revenue[23] - APAC (Asia-Pacific) contributes 8% to the company's revenue[23] - Latam (Latin America) accounts for 6% of the company's revenue[23]

Shares of monday.com fall as the company's revenue forecast disappoints. ...

Core Insights - monday.com reported Q3 CY2025 revenue of $316.9 million, exceeding Wall Street's expectations by 1.4% with a year-on-year growth of 26.2% [1][7][8] - The company provided Q4 CY2025 revenue guidance of $329 million, which is below analysts' estimates of $333.8 million [1][7] - Non-GAAP profit per share was $1.16, surpassing analysts' consensus estimates by 32.5% [1][7] Company Overview - monday.com is a cloud-based work operating system designed to help teams manage projects, track tasks, and streamline workflows through customizable interfaces [4] Revenue Growth - The company achieved an impressive annualized revenue growth of 53.3% over the last five years, outperforming the average software company [5] - Over the last two years, the annualized revenue growth was 31.2%, indicating healthy demand despite being below the five-year trend [6] Financial Performance - Adjusted operating income was $47.48 million, exceeding analyst estimates by 33.7% with a margin of 15% [7] - Operating margin improved to -0.8%, up from -10.9% in the same quarter last year [7] - Free cash flow margin increased to 28.5%, compared to 21.4% in the previous quarter [7] - The company has 3,993 customers paying more than $50,000 annually, with a net revenue retention rate of 115% [7] Market Position - The current market capitalization of monday.com stands at $9.77 billion [7]

Core Insights - Monday.com reported third-quarter earnings of $1.16 per share, a 36% increase year-over-year, with revenue rising 26% to $316.9 million, surpassing Wall Street expectations for profit but falling short on revenue guidance [2][3] - The company projected revenue of $329 million for the upcoming quarter, below analyst estimates of $333.7 million, indicating a cautious outlook [3] Financial Performance - Adjusted profit for the quarter ending September 30 was $1.16 per share, compared to analysts' expectations of 88 cents [2] - Revenue for the same quarter was $316.9 million, exceeding the forecast of $312.3 million, while the previous year's revenue was $251 million [2] Stock Market Reaction - Following the earnings report, Monday.com's stock fell 18% to approximately $155.49, marking a two-year low [3] - Prior to the earnings announcement, the stock had already declined 18% in 2024, and it experienced a significant drop of 29.8% on August 11 after Q2 results [3] Competitive Landscape - Monday.com competes with other project management software companies such as Asana, Smartsheet, and Atlassian [4] - The company raised $574 million during its IPO in June 2021, with an initial stock price of $155 [4] Stock Ratings - Monday.com holds a Composite Rating of 53 out of a possible 99, indicating moderate performance relative to peers [4] - The stock has an Accumulation/Distribution Rating of D, suggesting heavy selling over the past 13 weeks [5]