Core Insights - monday.com Ltd. (NASDAQ:MNDY) is recognized as one of the top mid-cap AI stocks to consider for investment by hedge funds [1] - UBS analyst Taylor McGinnis has lowered the price target for monday.com from $140 to $93, maintaining a Neutral rating, which suggests a potential upside of 25.49% from current levels as of February 11 [1] - The price target adjustment was influenced by the company's fourth-quarter earnings report, which indicated significant margin pressure [1] Financial Performance - For Q4, monday.com reported revenue of $333.9 million, representing a year-over-year increase of 24.6%, and exceeding consensus estimates by $4.24 million [2] - Non-GAAP earnings per share for the quarter were $1.04, surpassing estimates by $0.12 [2] - The company generated $59.7 million in net cash from operating activities and $56.7 million in adjusted free cash flow, both of which decreased from $76.7 million and $72.7 million in the same quarter of the previous year [2] - The number of paid customers increased across all segments [2] Future Guidance - For Q1 2026, monday.com anticipates revenue between $338 million and $340 million, slightly below the consensus estimate of $342.87 million, indicating approximately 20% year-over-year growth [3] - Non-GAAP operating income is expected to be between $37 million and $39 million, with an operating margin projected at 11% to 12%, factoring in a negative foreign exchange impact of 100 to 200 basis points [3] Company Overview - monday.com develops software applications globally, including in the United States, Middle East, Europe, United Kingdom, and Africa [4] - The company's product offerings include monday work management, monday CRM, monday dev, monday service, WorkCanvas, and WorkForms, primarily serving educational institutions, government entities, and various business units [4]

Financial Performance - monday com's Annual Recurring Revenue (ARR) exceeded $12 billion in H1 FY'25[23] - The company achieved a revenue growth of 28% in H1 FY'25[23] - Adjusted free cash flow margin was 30% in H1 FY'25[23] - Non-GAAP operating margin was 15% in H1 FY'25[23] - The company's cash and cash equivalents amounted to $16 billion[23] Customer Acquisition and Expansion - The company has over 250,000 customers[23] - Monthly Active Paying People (MAPP) reached approximately 25 million[23] - Only 6% of accounts have adopted more than one product, indicating a significant cross-sell opportunity[31, 61] - Accounts with multi-product adoption show a 25x uplift to Average Contract Value (ACV)[188, 220] AI and Product Innovation - AI is accelerating adoption and efficiency across monday com's products[61] - monday CRM reached $100 million ARR in just three years[30, 173] - monday Service is the fastest-growing product ever[30, 173] Go-to-Market Strategy - New accounts average contract value (ACV) increased by 38% from H1'21 to H1'25[38] - Customers with over $500k ARR have grown significantly, with a CAGR of 115% since H1'21[40]