monday.com(MNDY) ZACKS·2025-03-28 15:00Core 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 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 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]