Monday.com Boosts Revenue Outlook Amid Stock Price Drop

Monday.com Ltd reported significant growth in its fiscal third-quarter 2024, achieving a 33% year-over-year increase in revenue to $251.0 million, exceeding analyst expectations. The adjusted earnings per share also surpassed estimates, reaching $0.85 compared to the anticipated $0.63. Despite these positive results, the company’s stock experienced a decline following the announcement. The net dollar retention rate stood at 111%, indicating solid customer growth.With 2,907 paid customers generating over $50,000 in annual recurring revenue, the company is targeting larger clients as part of its growth strategy. Co-founders Roy Mann and Eran Zinman expressed confidence in sustaining momentum going forward, particularly as they've surpassed $1 billion in annual recurring revenue. Looking ahead, the company forecasts fourth-quarter revenue between $260 million and $262 million, raising annual guidance to around $964 million–$966 million, bettering previous estimates. However, with its adjusted operating margin projected to be stable, questions about the sustainability of its stock performance remain despite positive operational metrics.