Shares of Monday.com (NASDAQ:MNDY) tumbled on Monday after the company issued a disappointing outlook for the fourth quarter, which offset stronger-than-expected third-quarter earnings.
As of 07:10 ET, the stock had dropped roughly 19% in premarket trading, as investors reacted to the cautious forward guidance.
For the third quarter, Monday.com reported earnings of $1.16 per share, beating analyst estimates of $0.88 per share. Revenue climbed to $316.9 million, exceeding the market consensus of $312.3 million. The company also posted non-GAAP operating income of $47.5 million, representing a 15% margin.
“This quarter’s results reflect the strength of our execution and the continued success of our strategy to move upmarket while expanding our product suite,” said Monday.com co-founders and co-CEOs Roy Mann and Eran Zinman.
“We delivered our highest-ever non-GAAP operating profit this quarter, underscoring our focus on efficient, profitable growth,” added Eliran Glazer, Monday.com CFO.
Looking ahead, the company guided fourth-quarter revenue between $328 million and $330 million, below the market forecast of $333.8 million. It expects non-GAAP operating income of $36 million to $38 million, implying an operating margin of 11% to 12%.
For full-year 2025, Monday.com maintained its revenue projection of $1.23 billion, in line with analyst expectations. Non-GAAP operating income is expected to come in between $167 million and $169 million, with an estimated 14% margin.
The firm also anticipates adjusted free cash flow in the range of $330 million to $334 million, representing a margin of about 27%, signaling ongoing operational efficiency despite near-term growth moderation.