Monday.com Beats Q4 Earnings Expectations as Growth Slows

The Israeli software company reported its fourth-quarter earnings and revenue beat analysts’ expectations, but investors were disappointed with the company’s guidance for the first half of next year. Revenue for the quarter ended December 31 came in at $134.6 million, beating estimates from Wall Street by about 5%. The company’s net loss narrowed to $45.7 million, from a net loss of $54.4 million in the same period last year. The stronger-than-expected revenue was driven by growth in Monday.com’s enterprise software sales, particularly in the manufacturing and construction industries. However, the company’s guidance for the first half of next year fell short of expectations, with revenue forecast to be around 10% lower than a year ago. “We’re pleased with our Q4 performance, but we didn’t meet our first-half guide,” said Eli Guberman, Monday.com CEO. “The market is clearly changing, and we need to adapt.” Monday.com’s stock price fell by over 15% in after-hours trading following the earnings release. Analysts at Credit Suisse downgraded their rating on Monday.com shares to neutral from outperform, citing concerns about the company’s pricing strategy and competition from larger competitors.