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Monday.com (MNDY) Q3 Earnings: What To Expect

MNDY Cover Image

Project management software maker Monday.com (NASDAQ:MNDY) will be announcing earnings results tomorrow morning. Here’s what investors should know.

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

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

This quarter, analysts are expecting Monday.com’s revenue to grow 30.2% year on year to $246.3 million, slowing from the 38.2% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.63 per share.

Monday.com Total Revenue

The majority of analysts covering the company have reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Monday.com has a history of exceeding Wall Street’s expectations, beating revenue estimates every single time over the past two years by 3.9% on average.

Looking at Monday.com’s peers in the productivity software segment, some have already reported their Q3 results, giving us a hint as to what we can expect. Atlassian delivered year-on-year revenue growth of 21.5%, beating analysts’ expectations by 2.8%, and Microsoft reported revenues up 16%, topping estimates by 1.6%. Atlassian traded up 19% following the results while Microsoft was down 6.3%.

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

There has been positive sentiment among investors in the productivity software segment, with share prices up 11% on average over the last month. Monday.com is up 12.8% during the same time and is heading into earnings with an average analyst price target of $312.22 (compared to the current share price of $329).

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