Monday.com Shares Slide 15% as Weak Q4 Guidance Overshadows Strong Q3 Beat

Core Insights - Monday.com Ltd. shares dropped over 15% in intra-day trading due to fourth-quarter guidance falling below expectations, despite a strong third-quarter earnings report [1][2] Group 1: Third-Quarter Performance - The company reported third-quarter earnings of $1.16 per share, exceeding forecasts of $0.88 [1] - Revenue for the third quarter reached $316.9 million, surpassing the consensus estimate of $312.3 million [1] - Non-GAAP operating income was $47.5 million, resulting in a 15% operating margin [1] Group 2: Fourth-Quarter Guidance - For the fourth quarter, Monday.com projected revenue between $328 million and $330 million, which is below Wall Street expectations of $333.8 million [2] - The company forecasted non-GAAP operating income of $36 million to $38 million, indicating an 11%–12% margin [2] Group 3: Full-Year 2025 Outlook - Management reiterated revenue guidance for the full year 2025 at $1.23 billion, aligning with analyst consensus [3] - Non-GAAP operating income is expected to be between $167 million and $169 million, with a margin near 14% [3] - Adjusted free cash flow is projected at $330 million to $334 million, representing a 27% margin [3]