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Monday.com Third-Quarter Revenue Guidance Misses Views

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Monday.com Third-Quarter Revenue Guidance Misses Views

Monday.com (MNDY) guided its third-quarter revenue below Wall Street's estimates on Monday, even as it reported stronger-than-expected results for the preceding three-month period.

For the ongoing quarter, the work management software provider projects revenue between $368 million to $370 million, representing a 16% to 17% rise year over year. Analysts in a FactSet poll expect $372.8 million.

Monday.com forecasts adjusted operating income of $57 million to $59 million, compared with the second quarter's $61.1 million. Its US-listed shares declined 8.4% intraday, with the stock down 42% so far this year.

The company, which competes with Atlassian (TEAM) and Asana (ASAN), continues to expect full-year revenue of $1.466 billion to $1.474 billion. Analysts are looking for $1.47 billion. Monday.com guided full-year adjusted operating income of $230 million to $234 million, down from $185 million to $191 million previously expected.

For the June quarter, Monday.com reported adjusted EPS of $1.48, compared with $1.09 a year earlier and the consensus of $1.12. Revenue surged 22% to $364.6 million, while the Street projected $355.6 million.

Last week, Atlassian reported fiscal fourth-quarter results that topped analysts' estimates. Asana is scheduled to release its second-quarter results next month.

Last month, Monday.com cut its workforce by about 20% amid demand for artificial intelligence agents.

"Over the past nine months, Monday.com (has) undergone the most meaningful strategic shift in our history," co-Chief Executive Roy Mann said on an earnings call, according to a FactSet transcript. "We moved from building software that helps people manage work to building software that does the work with people and AI agents operating together in a single unified workspace."

Price: $85.88, Change: $-7.25, Percent Change: -7.78%

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