Monday.com Earnings Easily Beat. Here's Why The Software Stock Is Diving.

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]