Monday.com stock fell after the software maker reported third-quarter earnings and revenue that topped estimates while the company issued in-line revenue guidance for the December quarter.
The software maker reported earnings before the market open on Monday. For the quarter ending Sept. 30, the maker of project management software reported a profit of 85 cents a share on an adjusted basis, up 33% from a year earlier. Revenue also rose 33% to $251 million.
Meanwhile, the company announced leadership changes. Yoni Osherov will step down as chief revenue officer at the end of 2024. A search to fill the position is underway, the company said. Also, Monday.com said it has appointed Adi Dar as chief operating officer.
Analysts had predicted adjusted profit of 63 cents on revenue of $246 million.
MNDY Stock: Asana, Smartsheet Rivals
For the current quarter ending in December, Monday.com predicted revenue of $261 million, in line with Wall Street targets.
"We view this as a solid beat but think the lack of Q4 guide upside is weighing on shares, especially since shares are up 45% since last (Q2) print," said TD Cowen analyst Derrick Wood in a report.
On the stock market today, Monday.com stock fell 18.2% to 265.15 in morning trading. Heading into the earnings report, Monday.com stock had advanced 72% in 2024.
MNDY stock holds a Relative Strength Rating of 95 out of a best-possible 99, according to IBD Stock Checkup. Shares traded above a buy zone.
Monday.com competes with Asana, Smartsheet and Atlassian, among others.
Founded in 2012, Monday.com raised $574 million in its June 2021 initial public offering, with MNDY stock priced at 155.
Follow Reinhardt Krause on Twitter @reinhardtk_tech for updates on artificial intelligence, cybersecurity and cloud computing.
