Monday.com (MNDY) Third Quarter Earnings: What to Expect

Project management software maker Monday.com (NASDAQ:MNDY) will report earnings results tomorrow morning. Here’s what investors need to know.

Monday.com beat analysts’ revenue expectations by 3% last quarter, reporting revenue of $236.1 million, up 34.4% year over year. It was a strong quarter for the company, with an impressive increase in analyst EBITDA estimates and a solid increase in analyst ARR (annual recurring revenue) estimates. It added 222 business customers paying more than $50,000 annually, bringing the total to 2,713.

Is Monday.com going to make a buy or sell? Read our full analysis here, it’s free.

This quarter, analysts expect Monday.com’s revenue to grow 30.2% year over year to $246.3 million, a slowdown from the 38.2% increase recorded in the same quarter last year. Adjusted earnings are expected to be $0.63 per share.

The majority of analysts covering the company have reaffirmed their estimates from the last thirty days, suggesting they expect the company to continue its trajectory on the earnings front. Monday.com has a history of exceeding Wall Street expectations, beating revenue expectations by an average of 3.9% each time over the past two years.

Looking at Monday.com’s competitors in the productivity software segment, some have already reported their third quarter results, which gives us an idea of ​​what to expect. Atlassian achieved year-over-year revenue growth of 21.5%, exceeding analyst expectations by 2.8%. Microsoft reported a 16% increase in revenue, beating estimates by 1.6%. Atlassian rose 19% after the results, while Microsoft fell 6.3%.

Read our full analysis of Atlassian’s results here and Microsoft’s results here.

There was positive sentiment among investors in the productivity software segment, with share prices rising an average of 11% over the past month. Monday.com is up 12.8% over the same period and is heading for gains with an average analyst price target of $312.22 (compared to the current share price of $329).

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