Core Insights - Monday.com (MNDY) reported quarterly earnings of $1.16 per share, exceeding the Zacks Consensus Estimate of $0.89 per share, and up from $0.85 per share a year ago, representing an earnings surprise of +30.34% [1] - The company achieved revenues of $316.86 million for the quarter ended September 2025, surpassing the Zacks Consensus Estimate by 1.55% and increasing from $251 million year-over-year [2] - The stock has underperformed the market, losing about 19.5% since the beginning of the year compared to the S&P 500's gain of 14.4% [3] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $0.88 on revenues of $333.24 million, and for the current fiscal year, it is $3.97 on revenues of $1.23 billion [7] - The estimate revisions trend for Monday.com was favorable ahead of the earnings release, resulting in a Zacks Rank 2 (Buy) for the stock, indicating expected outperformance in the near future [6] Industry Context - The Internet - Software industry, to which Monday.com belongs, is currently ranked in the top 28% of over 250 Zacks industries, suggesting a favorable outlook for stocks within this sector [8] - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can be tracked by investors [5]

Core Viewpoint - The market anticipates that Monday.com (MNDY) will report a year-over-year increase in earnings and revenues for the quarter ended September 2025, with actual results being crucial for stock price movement [1][2]. Earnings Expectations - Monday.com is expected to post quarterly earnings of $0.89 per share, reflecting a year-over-year increase of +4.7% [3]. - Revenues are projected to be $312.02 million, which is an increase of 24.3% compared to the same quarter last year [3]. Estimate Revisions - The consensus EPS estimate has remained unchanged over the last 30 days, indicating that analysts have not significantly altered their initial estimates [4]. - The Most Accurate Estimate for Monday.com is lower than the Zacks Consensus Estimate, resulting in an Earnings ESP of -5.62%, suggesting a bearish outlook from analysts [12]. Earnings Surprise History - In the last reported quarter, Monday.com exceeded expectations by posting earnings of $1.09 per share against an expected $0.84, resulting in a surprise of +29.76% [13]. - The company has beaten consensus EPS estimates in each of the last four quarters [14]. Industry Comparison - HubSpot (HUBS), another player in the Zacks Internet - Software industry, is expected to report earnings of $2.58 per share, indicating a year-over-year change of +18.4% [18]. - HubSpot's revenues are expected to reach $786.26 million, up 17.4% from the previous year [18].

Core Insights - The shift from traditional SEO to AI-optimized search (AEO) requires businesses to adapt their content strategies to meet the evolving needs of users who increasingly rely on AI for information retrieval [1][4][5] Group 1: Changes in Search Behavior - Traditional SEO focused on search engine results pages (SERPs) and simplified queries, while AEO emphasizes direct answers through AI engines [2][4] - The buyer's journey remains unchanged, but AI is reshaping the initial phases of product discovery [3][5] - A significant portion of Google searches now ends without clicks, indicating a shift towards AI search engines for product discovery [7][6] Group 2: Content Strategy Adaptation - Brands must choose topics that create strong semantic associations with their products, moving beyond individual keywords to claim broader categories [8][9] - AEO rewards content that is comprehensive and interconnected, enhancing AI's ability to recognize it as authoritative [10] - Content must be designed for both human readability and machine retrieval, balancing factual authority with structured storytelling [11][12] Group 3: Distribution and Engagement - The marketing landscape has shifted, requiring brands to diversify their content distribution across multiple channels [6][21] - Engaging buyers in real-time is crucial, as they expect instant answers and personalized recommendations when evaluating products [23][24] - Trusted creators and influencers are becoming vital for building credibility and amplifying brand messages [26][27] Group 4: Leveraging AI for Content Production - The demand for fresh content is high, and AI can help scale production without excessive costs [28][30] - Experimenting with next-gen advertising formats that adapt in real-time can enhance relevance and engagement with target audiences [31][32] Group 5: The Future of Discoverability - AI is transforming how buyers make decisions, making it essential for businesses to influence AI engines to enhance their visibility [33][34] - Companies that adapt their strategies to create trustworthy content for both humans and machines will be better positioned for success in the evolving landscape [34]

Company Performance - Twilio reported quarterly earnings of $1.19 per share, exceeding the Zacks Consensus Estimate of $1.02 per share, and up from $0.87 per share a year ago, representing an earnings surprise of +16.67% [1] - The company posted revenues of $1.23 billion for the quarter ended June 2025, surpassing the Zacks Consensus Estimate by 3.66%, and an increase from $1.08 billion year-over-year [2] - Over the last four quarters, Twilio has surpassed consensus EPS estimates three times and topped consensus revenue estimates four times [2] Stock Performance - Twilio shares have increased approximately 20.5% since the beginning of the year, compared to the S&P 500's gain of 7.9% [3] - The current consensus EPS estimate for the upcoming quarter is $1.12 on revenues of $1.2 billion, and for the current fiscal year, it is $4.49 on revenues of $4.82 billion [7] Industry Outlook - The Internet - Software industry, to which Twilio belongs, is currently ranked in the top 28% of over 250 Zacks industries, indicating a favorable outlook [8] - Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions, suggesting that industry performance can significantly impact individual stock performance [5][8]

Company Performance - Monday.com (MNDY) closed at $247.40, down 4.29% from the previous trading session, underperforming the S&P 500's loss of 0.08% [1] - Over the past month, shares of Monday.com have decreased by 16.51%, while the Computer and Technology sector gained 3.95% and the S&P 500 gained 1.21% [1] Upcoming Earnings Report - The company is set to release its earnings on August 11, 2025, with an expected EPS of $0.84, reflecting a decline of 10.64% from the prior-year quarter [2] - The consensus estimate for quarterly revenue is $293.15 million, which represents an increase of 24.16% from the same period last year [2] Fiscal Year Estimates - For the entire fiscal year, the Zacks Consensus Estimates predict earnings of $3.79 per share and revenue of $1.22 billion, indicating increases of 8.29% and 25.59% respectively from the previous year [3] Analyst Estimates and Market Sentiment - Recent adjustments to analyst estimates for Monday.com are important as they reflect short-term business trends, with positive revisions indicating optimism about the business outlook [4] - The Zacks Rank system, which assesses these estimate changes, currently ranks Monday.com at 3 (Hold) [6] Valuation Metrics - Monday.com has a Forward P/E ratio of 68.25, significantly higher than the industry average of 28.8, suggesting it is trading at a premium [7] - The company also has a PEG ratio of 27.09, compared to the industry average of 2.18, indicating a high valuation relative to its projected earnings growth [8] Industry Context - The Internet - Software industry, to which Monday.com belongs, has a Zacks Industry Rank of 69, placing it in the top 28% of over 250 industries [8]

Core Viewpoint - The market anticipates that Monday.com (MNDY) will report a year-over-year decline in earnings despite higher revenues in its upcoming earnings report for the quarter ended June 2025 [1][3]. Earnings Expectations - The consensus estimate for Monday.com's quarterly earnings is $0.84 per share, reflecting a year-over-year decrease of 10.6% [3]. - Expected revenues for the quarter are $293.15 million, which represents a 24.2% increase from the same quarter last year [3]. Estimate Revisions - The consensus EPS estimate has remained unchanged over the last 30 days, indicating stability in analysts' assessments [4]. - A positive Earnings ESP of +3.30% suggests that analysts have recently become more optimistic about Monday.com's earnings prospects [12]. Earnings Surprise Potential - The Zacks Earnings ESP model indicates that a positive reading is a strong predictor of an earnings beat, especially when combined with a favorable Zacks Rank [10]. - Monday.com currently holds a Zacks Rank of 3, which, along with the positive Earnings ESP, suggests a likelihood of beating the consensus EPS estimate [12]. Historical Performance - In the last reported quarter, Monday.com exceeded the expected earnings of $0.70 per share by delivering $1.10, resulting in a surprise of +57.14% [13]. - The company has successfully beaten consensus EPS estimates in the last four quarters [14]. Industry Context - StoneCo Ltd. (STNE), another player in the Zacks Internet - Software industry, is expected to report earnings of $0.36 per share for the same quarter, indicating a year-over-year increase of 20% [18]. - StoneCo's revenues are projected to be $653.09 million, up 6.2% from the previous year [18]. - The consensus EPS estimate for StoneCo has been revised up by 5.9% over the last 30 days, and it has an Earnings ESP of +12.68%, suggesting a strong likelihood of beating the consensus EPS estimate [19].

Group 1: Company Performance - Monday.com (MNDY) stock was down 2.76% at $283.74, underperforming the S&P 500's daily gain of 0.14% [1] - Prior to the recent trading session, MNDY shares had gained 4.04%, lagging behind the Computer and Technology sector's gain of 7.37% and the S&P 500's gain of 5.35% [1] Group 2: Upcoming Earnings - The upcoming earnings release is expected to show an EPS of $0.84, reflecting a 10.64% decrease from the same quarter last year [2] - Revenue is forecasted to be $293.15 million, indicating a 24.16% increase compared to the year-ago quarter [2] Group 3: Full-Year Estimates - Full-year Zacks Consensus Estimates predict earnings of $3.79 per share and revenue of $1.22 billion, representing year-over-year changes of +8.29% and +25.59%, respectively [3] - Recent adjustments to analyst estimates may indicate short-term business trends and positive revisions can signal optimism about the business outlook [3] Group 4: Valuation Metrics - Current valuation metrics show a Forward P/E ratio of 77.05, significantly higher than the industry average of 29.16, indicating that Monday.com is trading at a premium [6] - The PEG ratio stands at 30.57, compared to the Internet - Software industry average of 2.2, suggesting a high valuation relative to expected earnings growth [7] Group 5: Industry Ranking - The Internet - Software industry, part of the Computer and Technology sector, has a Zacks Industry Rank of 79, placing it within the top 32% of over 250 industries [7] - The Zacks Industry Rank assesses the strength of industry groups, with the top 50% rated industries outperforming the bottom half by a factor of 2 to 1 [8]

Group 1: Momentum Investing Overview - Momentum investing involves following a stock's recent trend, with the aim of buying high and selling higher, capitalizing on established price movements [1][2] - The Zacks Momentum Style Score helps investors identify effective metrics for assessing momentum in stocks [2] Group 2: Company Analysis - Monday.com (MNDY) - Monday.com currently holds a Momentum Style Score of B and a Zacks Rank of 1 (Strong Buy), indicating strong potential for outperformance [3][4] - Over the past week, MNDY shares increased by 3.08%, outperforming the Zacks Internet - Software industry, which rose by 0.76% [6] - In the last three months, MNDY shares rose by 22.08%, and over the past year, they increased by 41.24%, significantly outperforming the S&P 500's gains of 3.59% and 14.21% respectively [7] Group 3: Trading Volume and Earnings Outlook - MNDY's average 20-day trading volume is 653,366 shares, which serves as a bullish indicator when combined with rising stock prices [8] - In the past two months, 9 earnings estimates for MNDY have been revised upwards, increasing the consensus estimate from $3.30 to $3.72 [10] - For the next fiscal year, 6 estimates have moved higher while 2 have been revised downwards, indicating a generally positive earnings outlook [10] Group 4: Conclusion - Considering the positive momentum indicators and earnings outlook, MNDY is positioned as a strong buy candidate for investors seeking short-term gains [12]

Financial Data and Key Metrics Changes - The company has transformed from being approximately 50% software five years ago to 75% software today [6] - Annual Recurring Revenue (ARR) has increased to over $2.1 billion, growing 17% organically in the first quarter [7] - Gross margins have improved by 1,200 basis points over the last five years, currently around 70% [7] - EBITDA has seen a 500 basis point improvement during the same timeframe [7] Business Line Data and Key Metrics Changes - The AECO (Architecture, Engineering, Construction, and Owners) software business is projected to reach about $1.4 billion in ARR this year [13] - The company has simplified its offerings, creating over 20 purpose-built bundles to enhance customer accessibility [15] - The construction software segment has seen a 19% growth in ARR in the first quarter, with two-thirds of new bookings coming from existing customers [22] Market Data and Key Metrics Changes - The company operates in 70 countries, with a significant presence in the U.S. market, benefiting from recent infrastructure laws and acts [50][51] - The construction software market is growing in the low single digits, while the company is growing at 19%, indicating market share gains [52] Company Strategy and Development Direction - The company's strategy focuses on "connect and scale," aiming to connect users, data, and stakeholders across industry lifecycles [9] - The company is pursuing a global expansion strategy, particularly in underserved markets like India and the Middle East [66] - The company is exploring both organic growth and potential M&A opportunities to enhance its capabilities in various markets [69] Management's Comments on Operating Environment and Future Outlook - Management sees a healthy backlog among customers, with labor being a bottleneck rather than demand [51] - The company believes it can continue to grow ARR in the teens for the foreseeable future, driven by a strong product-market fit and execution [23] - Management acknowledges the cyclical nature of the construction industry but emphasizes the secular trend towards digitization [57] Other Important Information - The company has undergone 23 divestitures and seven acquisitions in the last five years to simplify and focus its business [8] - The company is leveraging AI for internal efficiencies and customer-facing applications, enhancing productivity and service delivery [95][96] Q&A Session Summary Question: Where do you see new logo wins coming from? - New logo wins are expected to come from mid-sized contractors, with a focus on developing technology to penetrate further down market [89] Question: Can you provide more details about SketchUp? - SketchUp is a key product in the architecture and design suite, growing faster than the segment average, with over 200 million in ARR [91] Question: How is Trimble's cyclicality changing? - The company has a more durable business model today, with two-thirds of revenue being recurring, which provides resilience against market fluctuations [56] Question: What opportunities does Trimble see in the rental market? - The rental market presents opportunities for technology portability, especially in regions where rental is a common business practice [80] Question: How does the company plan to achieve its gross margin targets? - The company aims to reach 74% gross margin by 2027 through organic growth and a favorable mix of software over hardware [106]

Core Insights - Monday.com reported quarterly earnings of $1.10 per share, exceeding the Zacks Consensus Estimate of $0.70 per share, and showing an increase from $0.61 per share a year ago, resulting in an earnings surprise of 57.14% [1] - The company achieved revenues of $282.25 million for the quarter ended March 2025, surpassing the Zacks Consensus Estimate by 2.39% and up from $216.91 million year-over-year [2] - Monday.com has consistently outperformed consensus EPS and revenue estimates over the last four quarters [2] Financial Performance - The earnings surprise for the previous quarter was 38.46%, with actual earnings of $1.08 per share compared to an expected $0.78 [1] - The current consensus EPS estimate for the upcoming quarter is $0.78, with projected revenues of $291.81 million, and for the current fiscal year, the EPS estimate is $3.32 on revenues of $1.21 billion [7] Stock Performance - Monday.com shares have increased approximately 18.2% since the beginning of the year, contrasting with a decline of -3.8% in the S&P 500 [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating expected performance in line with the market in the near future [6] Industry Context - The Internet - Software industry, to which Monday.com belongs, is currently ranked in the top 39% of over 250 Zacks industries, suggesting a favorable outlook compared to lower-ranked industries [8] - Another company in the same industry, Rubrik, Inc., is expected to report a quarterly loss of $0.32 per share, reflecting a year-over-year change of +79.8%, with revenues projected at $260.23 million, up 38.9% from the previous year [9]