Monday.com Shares Plunge After 2026 Revenue Outlook Disappoints Despite Q4 Beat

Core Viewpoint - Monday.com shares fell over 21% intra-day after the company provided fiscal 2026 revenue guidance that did not meet analyst expectations, overshadowing a strong fourth-quarter earnings and revenue performance [1] Financial Performance - The company reported adjusted earnings of $1.04 per share for the fourth quarter, surpassing analyst estimates of $0.92 [2] - Revenue increased by 25% year over year to $333.9 million, exceeding the consensus forecast of $329.51 million [2] Future Guidance - For fiscal 2026, Monday.com projected revenue between $1.452 billion and $1.462 billion, which is below analyst expectations of approximately $1.48 billion [2] - The company forecasted first-quarter fiscal 2026 revenue of $338 million to $340 million, indicating roughly 20% year-over-year growth [3] Customer Metrics - There was a 45% increase in customers generating more than $100,000 in annual recurring revenue (ARR), totaling 1,756 [3] - Customers with more than $50,000 in ARR accounted for 41% of total ARR, up from 36% the previous year [3] Retention and Product Performance - The net dollar retention rate was 110%, with a higher rate of 116% among customers with more than $50,000 in ARR [4] - The monday vibe product became the fastest offering in company history to exceed $1 million in ARR [4] Margin Expectations - The company guided for a non-GAAP operating margin of 11% to 12% for fiscal 2026, factoring in a negative foreign exchange impact of 100 to 200 basis points [4]