Monday.com shares slide as weak outlook overshadows earnings beat

Shares of Monday.com (NASDAQ:MNDY) fell much than 20% successful aboriginal trading connected Monday aft the enactment absorption bundle shaper issued a weaker-than-expected outlook, overshadowing a fourth-quarter net and gross beat.

The institution forecast 2026 gross of $1.45 cardinal to $1.46 billion, beneath analysts’ mean estimation of $1.48 billion, and guided for operating income of $165 cardinal to $175 million, good abbreviated of expectations of astir $218 million, according to statement estimates.

Monday.com reported adjusted net of $1.04 per stock for the 4th quarter, topping analysts’ expectations of 92 cents, portion gross roseate astir 25% to $333.9 million, beating forecasts of astir $329.7 million.

Despite the top-line strength, investors focused connected signs of slowing maturation and borderline pressure. The company’s non-GAAP operating borderline declined to 12.5%, down 2.5 percent points from a twelvemonth earlier, portion escaped currency travel borderline fell sharply to 17.0%, compared with much than 27% a twelvemonth ago.

Monday.com’s nett dollar retention rate, a cardinal measurement of lawsuit spending growth, slipped to 110% from 111% successful the anterior quarter, with akin declines crossed larger lawsuit cohorts, including those generating much than $50,000 and $100,000 successful yearly recurring revenue.

The institution continued to grow its higher-value lawsuit base, reporting 1,756 customers generating much than $100,000 successful yearly recurring revenue, up 46% from a twelvemonth earlier, portion customers generating implicit $50,000 roseate astir 34%. Customers spending much than $500,000 annually accrued to 87, up 74% twelvemonth connected year.

Gross borderline remained unchangeable astatine 89.5%, portion remaining show obligations climbed 36.6% to $839 million, reflecting continued request and declaration growth.