Shares of Monday.com (NASDAQ:MNDY) slipped 3.7% on Wednesday following the company’s announcement of a 2027 revenue target of $1.8 billion at its investor day, falling slightly short of Wall Street expectations and prompting analysts to revise their forecasts.
Management described the $1.8 billion projection as a baseline scenario, noting it does not factor in potential revenue from upcoming AI products, including Monday Vibe and Agents, slated for release in 2026. Analysts had anticipated revenue closer to $1.82 billion.
“This implies a two-year compound annual growth rate (CAGR) of ~21% compared to 2025’s midpoint,” KeyBanc Capital Markets analyst Jackson Ader said in a note.
CFO Eliran Glazer emphasized that the new AI features—including a dashboard builder, the vibe coding-based application tool, and the new agent—are intended to both retain existing clients and attract new ones.
“The idea is that it will actually improve retention, create stickiness, and bring more customers to the Monday platform,” he said.
Early adoption of the vibe coding feature, which allows companies to build customized internal applications without coding, has already shown promising engagement from thousands of accounts since its launch last week.
“The level of engagement is something that we have not seen, you know, until now,” Glazer added.
During the event, management highlighted Monday Service, introduced earlier this year, which has already reached $7 million in annual recurring revenue (ARR), surpassing KeyBanc’s expectations. Monday Dev contributed $14 million, and combined with CRM, which exceeds $100 million in ARR, these offerings showcase the company’s evolution into a multi-product, AI-focused platform.
Glazer also pointed out that Monday.com continues to win larger accounts, with the 68 biggest clients holding contracts above $500,000 and an average value exceeding $900,000. He anticipates growth as AI features are cross-sold, noting that currently only about 6% of the customer base uses multiple products.
The company also unveiled its first share repurchase program, authorizing an $870 million buyback. Management projects gross margins of 85% to 90% by 2027, slightly below current levels due to changes in product mix.
Following the investor day, KeyBanc reduced its revenue forecasts but raised margin expectations, citing efficiency improvements and moderated hiring plans.
“No need to hide it, we are lowering our revenue estimates for the next couple years, but it is worth noting that the target excludes contributions from AI products like Vibe and Agents that are either coming soon or launched but far too early to build into revenue targets,” Ader wrote.
The analyst maintained an Overweight rating and a $330 price target, noting that “there is upside to that $1.8B number” once AI monetization is fully realized.
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