Monday.com shares plunge despite record profit and strong quarter
The Israeli software firm’s results beat expectations, but investors remain wary of AI’s impact on workplace tools.
Monday.com reported strong third-quarter results on Monday, but its stock plunged by 14% in New York.
The enterprise software company forecast fourth-quarter revenue of $328 million to $330 million, representing 22% year-over-year growth, compared to a 26% increase in third-quarter revenue.
Monday reported revenue of $317 million for the third quarter, exceeding the guidance it provided three months ago. The earnings report also beat expectations, showing a sharp narrowing of its GAAP operating loss to $2.4 million, down from $27.4 million in the same period in 2024.
Excluding accounting items, the company posted an adjusted operating profit of $47.5 million, up from $32 million a year earlier, the highest adjusted operating profit in Monday’s history.
The company did not update its full-year forecast, which remains at $1.22 billion in revenue, representing 26% annual growth, consistent with the pace reported in the previous quarter.
Monday’s stock has been under pressure since the sharp decline following its second-quarter earnings release, driven largely by investor concerns about the impact of the artificial intelligence (AI) upheaval and its potential to weaken demand for Monday’s work management and productivity solutions.
