Why Is Monday.com Stock Trading Lower Monday?
Portfolio Pulse from Anusuya Lahiri
Monday.com Ltd (NASDAQ:MNDY) reported Q4 2023 revenue growth of 35% Y/Y to $202.57 million, surpassing consensus estimates. Adjusted EPS was $0.65, beating the consensus of $0.32. Despite positive financial results, MNDY shares dropped 9.76% in premarket trading. The company also reported a net dollar retention rate of 110%, a 56% Y/Y increase in paid customers with over $50,000 in ARR, and strong cash flows. CFO Eliran Glazer expressed confidence in future growth despite economic challenges. Monday.com provided an optimistic outlook for Q1 and FY24 revenues and adjusted operating margins.
February 12, 2024 | 1:02 pm
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NEGATIVE IMPACT
Monday.com reported strong Q4 2023 results with revenue and EPS beating estimates, yet shares dropped 9.76% premarket. The company remains optimistic about future growth.
Despite Monday.com's positive earnings report, the stock price fell significantly in premarket trading. This could be due to market expectations already pricing in the positive results or concerns about future growth prospects despite the company's optimistic outlook. The short-term impact is negative due to the immediate price drop, but the company's strong performance and positive outlook could support recovery in the medium to long term.
CONFIDENCE 90
IMPORTANCE 90
RELEVANCE 100