monday.com's third quarter saw revenue and non-GAAP profitability surpass Wall Street expectations, but the market reacted negatively—shares dropped sharply following the results. Management attributed quarterly momentum to strong expansion among larger enterprise customers and accelerating adoption of new AI-powered products. However, CEO Roy Mann acknowledged that the transition toward targeting bigger accounts brought longer sales cycles and timing effects, which affected the magnitude of upside versus prior quarters. Co-CEO Eran Zinman highlighted that new product launches—particularly those leveraging AI—were well received by customers, while CFO Eliran Glazer pointed to improved operational efficiency and stable net revenue retention as supporting factors.
Is now the time to buy MNDY? Find out in our full research report (it’s free for active Edge members).
monday.com (MNDY) Q3 CY2025 Highlights:
- Revenue: $316.9 million vs analyst estimates of $312.4 million (26.2% year-on-year growth, 1.4% beat)
- Adjusted EPS: $1.16 vs analyst estimates of $0.88 (32.5% beat)
- Adjusted Operating Income: $47.48 million vs analyst estimates of $35.52 million (15% margin, 33.7% beat)
- Revenue Guidance for Q4 CY2025 is $329 million at the midpoint, below analyst estimates of $333.8 million
- Operating Margin: -0.8%, up from -10.9% in the same quarter last year
- Customers: 3,993 customers paying more than $50,000 annually
- Net Revenue Retention Rate: 115%, in line with the previous quarter
- Annual Recurring Revenue: $1.27 billion vs analyst estimates of $1.25 billion (26.2% year-on-year growth, 1.4% beat)
- Billings: $320.2 million at quarter end, up 21.4% year on year
- Market Capitalization: $8.28 billion
While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.
Our Top 5 Analyst Questions From monday.com’s Q3 Earnings Call
- Kash Rangan (Goldman Sachs) asked about the impact of the go-to-market transition toward larger deals and whether it would sustain historical upside. Co-CEO Eran Zinman responded that demand remains strong across all customer segments and AI features are resonating, while CFO Eliran Glazer attributed timing effects to the lower beat magnitude.
- Jackson Ader (KeyBanc Capital Markets) inquired about deferred revenue trends amid the upmarket shift. CFO Eliran Glazer clarified that billings are not a perfect measure for the business and recommended focusing on RPO (remaining performance obligations) as a better indicator, which is accelerating.
- Brent Thill (Jefferies) pressed for details on the lowered guidance and whether this marks a change in outlook. Glazer reiterated that the guidance approach is consistent, with timing effects from investment rebalancing toward higher ROI channels impacting near-term results.
- Mark Murphy (JPMorgan) questioned performance in mid-market and SMB segments relative to the enterprise. Co-CEO Eran Zinman acknowledged choppiness in top-of-funnel digital channels but noted signs of stabilization and confidence in the acquisition pipeline.
- Taylor McGinnis (UBS) asked if softness downmarket contributed to guidance cuts. Zinman replied the mix shift toward larger customers, not increased acquisition difficulty, was the main factor, and Glazer added that stabilization in lower segments is part of their comfort with future targets.
Catalysts in Upcoming Quarters
Looking ahead, the StockStory team will be monitoring (1) whether upmarket pipeline conversion accelerates as longer sales cycles mature, (2) adoption rates and monetization of new AI-powered offerings and bundled products, and (3) stabilization or improvement in mid-market and SMB customer acquisition channels. Progress on cross-sell initiatives and execution of the multiproduct strategy will also be critical signposts for sustained revenue growth.
monday.com currently trades at $161.48, down from $189.59 just before the earnings. Is the company at an inflection point that warrants a buy or sell? The answer lies in our full research report (it’s free for active Edge members).
The Best Stocks for High-Quality Investors
If your portfolio success hinges on just 4 stocks, your wealth is built on fragile ground. You have a small window to secure high-quality assets before the market widens and these prices disappear.
Don’t wait for the next volatility shock. Check out our Top 6 Stocks for this week. This is a curated list of our High Quality stocks that have generated a market-beating return of 244% over the last five years (as of June 30, 2025).
Stocks that have made our list include now familiar names such as Nvidia (+1,326% between June 2020 and June 2025) as well as under-the-radar businesses like the once-micro-cap company Kadant (+351% five-year return). Find your next big winner with StockStory today.
