monday.com beats Q3 estimates but warns of slower growth during AI transition
On November 9, monday.com reported Q3 revenue of $377.5M and adjusted EPS of $2.14, both above estimates. It guided for Q4 revenue of $380M-$382M and raised its full-year revenue forecast to $1.473B-$1.475B. AI ARR reached $36M, but management cited near-term friction from its AI-first shift, restructuring and enterprise focus; shares fell 7.3%.
Why it matters
The Q4 outlook was below analyst expectations, creating a lower near-term revenue baseline despite the Q3 beat. Management said the AI transformation and related operational changes would cause near-term headwinds, while analysts including Oppenheimer, Canaccord, Needham, Jefferies and BofA lowered ratings or price targets.
Key facts
- 1Q3 revenue was $377.5M and adjusted EPS was $2.14. finance.yahoo.com
- 2Q4 revenue guidance was $380M-$382M. finance.yahoo.com
- 3Full-year revenue guidance was $1.473B-$1.475B. finance.yahoo.com
- 4AI annual recurring revenue reached $36M. finance.yahoo.com
- 5Shares fell 7.3% after the results. finance.yahoo.com
- 6The company reported Q3 net revenue retention of 108%. financialcontent.com
Open questions
- Net revenue retention is reported as 108%, but 112% and 117%; the discrepancy is unresolved.
Summary written by AlphAI AI Desk from 20 of 21 sources. Not investment advice. Figures are as stated by the linked sources.