Monday.com plunges despite beating analysts, raising guidance

Eran Zinman and Roy Mann  credit: Netanel Tobias
Eran Zinman and Roy Mann credit: Netanel Tobias

The assessment on the market is that the reason for the sell-off is profit taking, after a 73% rise in the share price in the year to date.

The share price of Tel Aviv-based Monday.com (Nasdaq: MNDY) fell by about 20% after the company released its third quarter results today, despite the fact that it beat market estimates and raised its annual guidance. The share price has since recovered somewhat, and is currently down by about 15.5% at $274.13, giving the company a market cap of $13.7 billion. The assessment on the market is that the reason for the decline is profit taking. Until today, the share price had risen 73% for the year to date, and outperformed the market.

Monday.com, headed jointly by its co-founders Eran Zinman and Roy Mann, has developed an enterprise operating system to assist in the management of work processes. In the third quarter, the company recorded revenue of $251 million, 32.7% more than in the corresponding quarter of 2023, and above its guidance of $243-247 million. For the first nine months of this year, revenue is 33.6% ahead of the corresponding period of 2023, at $704 million.

On a GAAP basis, Monday.com posted an operating loss of $27.4 million and a net loss of $12 million in the third quarter. In the corresponding quarter, both figures were positive. For the first nine months of this year, the company posted a net profit of $9.4 million.

On a non-GAAP basis, net profit was $45 million for the third quarter and $126 million for the first nine months, giving earnings per share of $0.85 and $2.41 respectively, higher than the consensus analysts’ estimate.

Guidance raised

Monday.com has again raised its guidance, and now expects revenue of $964-966 million for 2024, 32% more than in 2023. The previous revenue guidance was $956-961 million. On a non-GAAP basis, the company projects an operating profit of $121-123 million, giving an operating margin of 12-13%. The previous guidance was $100-105 million and an operating margin of 10-11%. The guidance for free cash flow for the year has been raised from $270-275 million to $286-289 million.

"Monday.com had a strong third quarter, driven by the team’s consistent execution as we focus on deepening our product capabilities and bolstering the platform to support customers of all sizes," Mann and Zinman said. "Reaching $1 billion in ARR marks a major milestone in our journey as a company, and we are more excited than ever to enter this next stage of growth, building on the strong foundation we’ve established."

Published by Globes, Israel business news - en.globes.co.il - on November 11, 2024.

© Copyright of Globes Publisher Itonut (1983) Ltd., 2024.

Eran Zinman and Roy Mann  credit: Netanel Tobias
Eran Zinman and Roy Mann credit: Netanel Tobias
Unframe founders credit: Yossi Yarom Israeli AI enterprise platform co Unframe raises $50m

Unframe’s turnkey AI solutions enable companies to solve any enterprise AI use case at scale with fully functional, customized AI solutions for businesses in a matter of hours, rather than months.

Combatica credit: Combatica Combatica launches next-gen VR AI training platform

The Israeli company's virtual reality platform includes 50 AI generated scenarios, seven maps and even situations for operating night vision.

Shekel credit: Shutterstock Vladirina 32 Shekel volatility after US tariffs announcement

The shekel is weakening sharply against the euro, which is gaining following the unveiling of Donald Trump's tariffs plan.

Minister of Finance Bezalel Smotrich credit: Noam Moskovitz Knesset Spokesperson Treasury assesses potential damage to Israel's US exports

Israel will be charged a higher tariff on its exports to the US - its biggest export customer - than Turkey and the UAE.

Iranian flag credit: Shutterstock Why inflation haunts Iran

With a month-on-month increase of 3.3% and an annual rate of 37.1%, inflation reflects the struggles of millions of Iranians.

APM merges with lawyers from Doron, Tikotzky Kantor, Gutman credit: Eyal Merilos APM merges with 12 lawyers from Doron, Tikotzky Kantor, Gutman

With the addition of these 12 lawyers, Amit Pollak Matalon & Co. will now have 135 lawyers.

US President Donald Trump credit: Reuters Sipa USA Israel on list as Trump unveils tariffs

Relatively low reciprocal tariffs will be imposed on Israeli goods sold in the US.

Deflated unicorn credit: Shutterstock Big Tech 50 reports more huge falls in startup valuations

Israeli R&D partnership Big Tech 50 reports that an investment of $2 million in Orcam made in 2021, shrank to just $31,000 at the end of 2024.

NextFerm technologies based on yeast credit: NextFerm Food-tech co NextFerm suspends operations

The company, which produces food ingredients in yeast without genetic engineering, cannot pay its debts and is seeking a buyer.

Minister of Finance Bezalel Smotrich credit: Shlomi Yosef OECD sees recovery in growth but high inflation

The OECD Israel Economic Survey 2025 recommends that the Israeli government take several restraining measures, in order to exit the economic storm created by the war.

Dano Ben-Hur credit: Dror Sithakol Statisticians contradict BoI on impact of housing finance deals

The Central Bureau of Statistics insists the impact of 20/80 buy now pay later financing deals on the real estate market and housing prices is minimal.

Governor of the Bank of Israel Amir Yaron  credit: Government Press Office Debt fears top Bank of Israel's concerns

Most unusually, Governor of the Bank of Israel Amir Yaron's press conference last week did not focus on inflation and the impending interest rate decision.

US President Donald Trump  credit: Reuters/Leah Millis Israel moves to avoid Trump's tariffs axe

Minister of Finance Bezalel Smotrich has signed an order canceling all tariffs on imports from the US. The impact will mostly be on agricultural produce.

Forbes Rich List credit: Shutterstock Maslowski Marcin Wiz founders ranked in Forbes 2025 Rich List

There are a few dozen Israelis listed in the 2025 Forbes Real-Time Billionaires List including Wiz founders Assaf Rappaport, Yinon Costica, Roy Reznik and Ami Luttwak.

SatixFy CEO Nir Barkan credit: Ariel Barkan Canada's MDA Space to buy Israeli satcom co SatixFy

MDA Space will pay $269 million for the Israeli company, including taking on a $76 million debt and a 75% premium on SatixFy's closing price on Nasdaq yesterday.

Raising dollars credit: Shutterstock Israeli startups raised over $1b in March

Israeli privately-held tech companies have raised $2.1 billion in the first three months of 2025, according to IVC-LeumiTech, up 24% from the corresponding quarter of 2024.

Twitter Facebook Linkedin RSS Newsletters גלובס Israel Business Conference 2018