Israeli work working methods firm monday.com (Nasdaq: MNDY) share value is down 28% on Wall Avenue, giving a market cap of $9.2 billion. This regardless of beating the analysts’ consensus in its second quarter 2025 outcomes, offering related steering to the analysts’ consensus for the third quarter and elevating its annual steering. Clearly traders had been anticipating extra.
monday.com sees 2025 income of $1.224-1.229 billion, up 26% from 2024 and better than the earlier steering of $1.22-1.226 billion. Free money circulation will attain $320-326 million, in contrast with the earlier forecast of $310-316 million, and working revenue shall be $154-158 million, a profitability price of 13%, in contrast with the earlier forecast of $144-150 million and a price of 12%. The forecast for the third quarter is just like market forecasts, however the mid-range of the income forecast is decrease than the analyst consensus, with the corporate anticipating income of $311-313 million and non-GAAP working revenue of $34-36 million. The income progress price within the third quarter shall be decrease than within the second quarter and can attain 24-25%.
Within the second quarter of 2025, the corporate’s income grew 26.6% to $299 million, about $5 million larger than analysts’ forecasts. GAAP web revenue was $1.6 million and non-GAAP web revenue was $58.3 million ($1.09 per share), considerably larger than analysts’ forecasts.
Lucid Capital, which manages tech funding funds, mentioned that the inventory is falling because of weak spot within the small and medium-sized enterprise (SMB) market. “The blame falls on Google’s AI Overview.” They add that Google’s change considerably harm visitors from Google, together with from small and medium-sized companies. “Let’s keep in mind that CRM (buyer relationship administration product) is Monday’s progress engine, and the overwhelming majority of Monday’s prospects are small or micro-businesses,” Lucid wrote. “This variation by Google compelled Monday and different firms to pour more cash into sponsored promoting within the quarter.”
Analysts are optimistic
“Q2 marked one other sturdy quarter for monday.com, with continued income progress and quickly rising demand for our broad product suite, significantly from enterprise prospects,” mentioned monday.com co-founders and co-CEOs Roy Mann and Eran Zinman. “We proceed to see proof that our dedication to AI innovation is delivering actual worth for patrons, and we’re proud to be main a brand new period of labor execution. By taking the platform’s flexibility to the subsequent degree, our new AI capabilities handle core challenges throughout all our product areas and permit customers to give attention to their most important strategic priorities.”
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On the finish of final week Monday.com had a market cap of $12.75 billion, up 20.6% because the begin of the yr. Most analysts overlaying Monday’s inventory are optimistic, with a small quantity impartial. The typical value goal for the inventory displays a 23.8% premium on the final closing value earlier than the report was launched, though some analysts might replace their value targets after the report.
Revealed by Globes, Israel enterprise information – en.globes.co.il – on August 11, 2025.
© Copyright of Globes Writer Itonut (1983) Ltd., 2025. .
